Consumer complaint received 2026-02-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: MS

Complaint narrative:
Type of Issue Mortgage servicing errors, improper loss mitigation handling, refusal of payment, and foreclosure activity arising from servicer error. 

Statement of Complaint I submit this follow-up complaint because Shellpoint Mortgage Servicing has failed to correct known servicing errors and is continuing foreclosure activity while simultaneously asserting that an unaffordable lump-sum repayment is the only available option. The delinquency at issue resulted from servicer error, not borrower nonpayment. 

Relevant Facts Misapplied and Mishandled Payments Shellpoint failed to properly apply authorized mortgage payments made by phone. 

In XX/XX/year>, Shellpoint processed only {$470.00} of an authorized {$900.00} payment, despite sufficient funds being available in my account. 

Shellpoint later advised that a payment had been misplaced internally and required reapplication for a repayment plan due to its own error. 

Improper Refusal of Payment Due to Incorrect Bankruptcy Coding Shellpoint incorrectly coded my account as being in bankruptcy. 

As a result of this error, Shellpoint refused to accept my XXXX mortgage payment. 

I repeatedly advised Shellpoint that no bankruptcy had been filed and was transferred to the bankruptcy department to attempt correction. 

The resulting delinquency was caused by Shellpoints refusal to accept payment, not by any failure to pay on my part. 

Loss Mitigation Review While Foreclosure Proceeds Shellpoint required me to complete a loss-mitigation intake, including disclosure of income and household expenses, and advised that my documents were under review. 

Despite this active review and unresolved servicing disputes, Shellpoint has stated that my loan is in active foreclosure and has demanded an {$8200.00} lump-sum payment as a condition of entering a repayment plan. 

No foreclosure sale date has been scheduled, but foreclosure referral has occurred while disputes remain unresolved. 

Improper Limitation of Available Options Shellpoint has asserted that a lump-sum repayment plan is the only option available. 

This position fails to account for : servicer-caused delinquency, refusal of payment due to incorrect bankruptcy coding, and reasonable alternatives such as deferral, capitalization, or modification. 

Requiring a lump-sum payment under these circumstances is unreasonable and inconsistent with fair servicing practices. 

Applicable Law and Standards Shellpoints actions raise concerns regarding compliance with federal mortgage servicing requirements, including but not limited to : RESPA, 12 C.F.R. 1024.35 ( failure to correct servicing errors and misapplied payments ) RESPA, 12 C.F.R. 1024.36 ( failure to provide accurate and complete information ) Restrictions on advancing foreclosure activity while loss-mitigation review is pending Unfair or deceptive practices where payment is refused or options are misrepresented

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation