Consumer complaint received 2026-05-25 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: NY

Complaint narrative:
Complaint Narrative : I am writing to report severe, predatory accounting violations and a breach of contract by my mortgage servicer ( s ), Newrez & Shellpoint & Specialized Loan Servicer & XXXX XXXX XXXX, regarding Account Number ( s ) : XXXX ( and all other loan # s XXXX XXXX & XXXX ) Property Address : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Borrower ( s ) : XXXX XXXX age XXXX XXXX XXXX ( This is also elder abuse ) My mortgage account is contractually current, and I am not in default. However, the servicer has unlawfully altered my legal mortgage contract by unilaterally increasing my principal balance without authorization, a signed loan modification, or a court order. They have also continued to increase my escrow taking my mortgage payments from {$2600.00} to now {$3800.00}. The original loan amount was {$440000.00}. The servicers recent statements has been displaying an inflated principal balance of {$440000.00}, Inflated Balance Amount, reflecting an unauthorized addition of approximately {$5000.00}. Because of this unapproved principal increase, my regular monthly payments are being misapplied. This is manufacturing artificial escrow shortages, generating predatory fees, and threatening the security of my primary residence. On XX/XX/XXXX, I mailed a formal RESPA Notice of Error ( NOE ) and a Request for Information ( RFI ) via Certified Mail to the servicer 's designated dispute address. Desired Resolution : I request that the CFPB compel the servicer to : Conduct a full, life-of-loan audit of my account. Strip away the unauthorized principal additions and restore my balance to the correct amortized baseline of my original note. Remove the escrow from these predatory entities and return it back to the homeowner. * Order a cease and desist of the escrow ( or {$800.00} escrow increase to begin XX/XX/XXXX ). Cease and desist from adding predatory fees or reporting inaccurate, adverse payment data to the credit bureaus while this dispute is active. * According to my original note terms and standard amortization, my true remaining principal balance as of today should be about {$170.00} to {$170000.00}. Newrez is displaying a balance of {$660000.00}, in a XXXX loan that started XXXX for {$440000.00}, the original purchase price, that is resulting in an illegal, predatory overcharge of exactly {$480000.00}. '' Almost a half a XXXX dollars from my equity and investment. Based on my original {$440000.00} loan from XX/XX/XXXX, my principal balance should have been knocked down to roughly {$380000.00} by XXXX through my monthly payments to the XXXX XXXX XXXX, instead, the banks and servicers illegally added money to my mortgage, that was not in default jumping my baseline back up to {$440000.00}. Because they inflated my balance by roughly {$45000.00} in XXXX, they have spent the last 17 years charging me interest on money that I have never borrowed. 1. The Homeowners ( XXXX XXXX ) Exact Overcharge Breakdown : The XXXX Fraud Baseline : In XX/XX/XXXX, six years into my mortgage, my true principal balance should have been approximately {$380000.00} ( assuming a standard XXXX interest rate of around 6.5 % ). By these predatory entities writing {$440000.00} on your statement after taking over my XXXX loan, Newrez 's ( and these entities ) predecessors added an illegal cushion of {$46000.00} in phantom principal to my loan balance. The Compound Interest Trap : Because my principal was artificially high, a larger portion of every single monthly payment that I made since XXXX was diverted to cover fake interest instead of chipping away at my original real debt. My True Today Balance : Because I have been paying on time for 23 years, my true remaining balance today should be roughly {$170000.00} to {$170000.00}. If my current Newrez statement shows a balance significantly higher than this, that is the exact amount they are actively overcharging me in my 30 fixed mortgage loan. Update Specification of Error # 1 in your paper letter with these concrete details : Unlawful Principal Increase : My original mortgage note dated XX/XX/XXXX was for {$440000.00}. Through regular, on-time payments, my principal balance was steadily amortizing. However, in XXXX, the servicer unlawfully altered my account records to artificially increase my principal balance to {$440000.00}. This represents an unauthorized addition of approximately {$45000.00} to my principal baseline, which occurred without my signature, consent, or a legal court-ordered modification. Instead forced into a modification that was illegal because there was no default on the loan and that steered the homeowner into, this illegal situation done by an unjust XXXX XXXX XXXX ( XXXX ), putting the homeowner into a predatory takeover from the homeowners mortgage bank : XXXX, and into the illegal predatory banks and servicers. The XXXX was found to operate wrongfully against the homeowner along with the predatory bank and servicer and was ordered to pay the homeowner and correct the mortgage, but this was never done. The courts would not allow the elderly homeowner to represent herself in court and the home could not afford an attorney. The elderly homeowner have been fighting this bad predatory situation ever since XXXX. And the homeowner was once again illegally forced into illegal modifications because of the predatory bank and servicer illegally used the homeowners mortgage payments for illegal fees and overcharged escrow that was absorbed to the bank and servicer. Based on the homeowners original {$440000.00} loan from XX/XX/XXXX and XX/XX/XXXX, the principal balance should have been knocked down to roughly {$380000.00} by XXXX through my monthly payments. Instead, servicers illegally added money to the homeowners mortgage, jumping the baseline up to {$440000.00}. Because the predatory banks and servicers inflated the balance by roughly {$45000.00} in XXXX, the predatory banks and servicers have spent the last 17 years charging the homeowner interest on money you never borrowed. When submitting your complaint online against Newrez LLC, use this precise narrative block : I am filing this complaint against Newrez LLC for predatory accounting and severe contract violations. I am currently on my mortgage and not in default. My loan originated in XX/XX/XXXX for {$440000.00}. In XXXX, the servicer illegally manipulated my account history to manually overwrite and increase my principal balance to {$440000.00}. This unapproved capitalization added roughly {$45000.00} in phantom principal. For the last 17 years, my monthly payments have been severely misapplied to service illegal interest on this fabricated balance, creating predatory escrow shortages and inflating my current balance. I demand a life-of-loan audit back to XXXX, the immediate removal of this unauthorized principal padding, and a complete recalculation of my true amortized balance. I want my escrow out from these illegal modifications and once my balance and stolen equity of approximately {$480000.00} is restored back to my loan, I wish to leave this dishonest entity. I never had a loan for {$440000.00}. Never! This timeline show how in XXXX, many predatory servicers engaged in an illegal practice called " force-placed capitalization '' where they tucked junk fees, fake escrow shortages, or corporate advances directly into the primary loan balance without the homeowner 's knowledge. " The servicer capitalized roughly {$45000.00} into my principal balance back in XXXX with a forced loan modification. '' A loan that was not in default. Please request the historic ledger sheets to strip that illegally stolen money off of my loan. Remember the XXXX helped these predators take extreme advantage of me. I am now XXXX XXXX XXXX ( This is also elder abuse ).

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