Consumer complaint received 2026-04-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: AZ

Complaint narrative:
Subject : Formal Notice of Error, Demand for Immediate Payment Suspension, and XXXX XXXX XXXX : XXXX XXXX Loan Number : XXXX Property Address : XXXXXXXX XXXX XXXX XXXX Email : XXXX Phone : XXXX To : / Shellpoint Mortgage Servicing FORMAL NOTICE OF ERROR AND QUALIFIED WRITTEN REQUEST ( QWR ) This letter serves as a formal Notice of Error and Qualified Written Request ( QWR ) under the * * ( 12 U.S.C. 2605 ) * * and Regulation X ( 12 C.F.R. 1024 ). STATEMENT OF FACTS AND LIABILITY I have been informed by XXXX XXXX XXXX XXXX that they may have improperly billed premiums that should not have been charged. This establishes that the root cause of this issue originates with XXXX XXXX. However, your company, NewRez, is also directly complicit in the financial harm caused to me. For clarity : My homeowners insurance historically averaged approximately {$1800.00} annually. Your company suddenly disbursed approximately {$16000.00} for insurance premiums. This is not a minor discrepancyit is an extreme and obvious irregularity that should have immediately triggered review and verification procedures. Despite this, NewRez released escrow funds without question, verification, or reasonable due diligence. A competent mortgage servicer exercising even basic oversight would have recognized that a jump from {$1800.00} to {$16000.00} is facially unreasonable and indicative of error or fraud. POSITION Let me be unequivocally clear : XXXX XXXX is at fault for initiating improper billing. NewRez is equally at fault for negligently disbursing escrow funds without verifying the legitimacy of those charges. I, the borrower, am not responsible for errors created by either company. I maintained continuous insurance coverage and acted in good faith at all times. IMPACT As a direct result of these failures : My escrow account has been artificially inflated A massive and unjustified escrow shortage has been created My monthly mortgage payment has dramatically increased This financial burden is entirely the result of third-party error and servicing negligence, not borrower action. FORMAL DEMANDS Effective immediately, I demand : Immediate suspension ( freeze ) of all mortgage payments related to the disputed escrow shortage until this matter is fully resolved A complete escrow audit and accounting of all insurance disbursements Immediate reversal of all improper or duplicate insurance payments Correction of my escrow balance and monthly payment to reflect accurate and lawful amounts Written confirmation that my account will not be reported negatively to any credit bureau during this dispute A detailed explanation of why such an extreme payment increase was not flagged or prevented by your internal controls LEGAL NOTICE Your failure to detect and prevent this obvious error, and your subsequent attempt to pass the financial consequences onto me, may constitute violations of : Regulation X ( Error Resolution Procedures ) Applicable state consumer protection laws Additionally, this letter serves as a formal demand for preservation of all records, including but not limited to : Internal servicing notes Escrow analyses Insurance communications Payment authorization records Call logs and correspondence DEADLINE FOR RESPONSE You are required by federal law to acknowledge and respond within statutory timeframes. I expect a substantive written response within 30 days. RESERVATION OF RIGHTS I reserve all rights to escalate this matter, including filing formal complaints with : The The Arizona Attorney General and pursuing all available legal remedies. This situation was caused by XXXX XXXX improper billing and NewRezs failure to exercise due diligence. I will not accept financial responsibility for either partys errors. I expect immediate corrective action. Sincerely, XXXX XXXX

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