Consumer complaint received 2026-05-13 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TX

Complaint narrative:
On XX/XX/year>, Newrez/Shellpoint Mortgage Servicing XXXX applied another customer 's check in the amount of {$33000.00} to my home equity line of credit ( HELOC ) account. The error was confirmed by Newrez representative XXXX, who contacted me by phone to explain. Newrez reversed the misapplied funds and made them available the same day the error was recognized. Following the reversal, Newrez 's system incorrectly recorded that reversal as a " principal payment '' on my account, triggering an automatic XXXX hold on HELOC withdrawals. As a direct result, XXXX subsequent checks I XXXX on my HELOC and deposited to my XXXX account have been written, cleared by XXXX, and then returned by Newrez : XXXX. First {$25000.00} check initially returned by Newrez because their verification process ( required for amounts over {$10000.00} ) was unable to reach me. After completing verification by phone and submitting the required identification, I was told I was clear to rewrite. XXXX. Rewritten {$25000.00} check returned by Newrez because their system continued to read the prior {$33000.00} reversal as a principal payment, within the XXXX withdrawal hold window. A Newrez representative reviewed the issue, confirmed the system had misclassified the reversal, and assured me she had submitted a notification to the appropriate internal department to override the flag for my next check. I provided her the new check number and the new amount ( {$35000.00} ). XXXX. {$35000.00} check written based on the override assurance. XXXX cleared the check the following day. On Saturday XX/XX/year>, XXXX notified me the check had been returned, overdrawing my account by {$35000.00}. On Monday XX/XX/year>, Newrez confirmed the return was for the same reason the system still reads the {$33000.00} reversal as a principal payment, and I am still inside the XXXX hold window. The override I had been promised was never executed. As of the date of this complaint, the funds have not been reallocated to my HELOC, the system flag misclassifying Newrez 's own reversal as a principal payment has not been corrected, and Newrez has not provided any committed timeline for resolution. Cascading harm caused by Newrez 's errors : XXXX has restricted both my personal and business checking accounts on suspicion of fraud. I am a long-standing XXXX customer in good standing. These accounts are now at real risk of being closed. Multiple scheduled bill payments have failed through my XXXX accounts, generating ongoing NSF and returned-payment fees. XXXX XXXX closed access to all XXXX of my credit cards ( XXXX personal and XXXX business ) after returned payments hit scheduled XXXX drafts. I rescheduled with XXXX ; the rescheduled draft date coincided with XXXX restricting my accounts, causing those payments to fail as well. Because XXXX treats issues on any single card as applying to all linked cards, my entire card portfolio is frozen. XXXX have also removed my primary XXXX account from an option to make payments I have been unable to conduct normal business operations for multiple consecutive days. I operate multiple businesses that rely on the card and account access I have lost. My personal financial reputation and standing with my bank have been damaged through no fault of my own. Attempts to resolve directly with Newrez : I have spoken with multiple Newrez/Shellpoint representatives, including a supervisor. The most recent response from a Newrez customer service representative was that an " inquiry '' had been sent to their internal check team, with no committed timeline for resolution and no offered ownership of the matter. No one at Newrez has taken responsibility for correcting the misclassified transaction, releasing the funds, or addressing the financial harm caused. The original error Newrez applying another customer 's check to my HELOC and every subsequent failure to correct the resulting system flag have been caused entirely by Newrez/Shellpoint XXXX None of these failures originated with me. Yet the full financial, professional, and personal consequence has fallen on me, my household, and my businesses.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation