Consumer complaint received 2025-10-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
Shellpoint Mortgage has been holding my payments in unapplied funds, overcharging thousands in interest, and reporting a false loan balance to credit bureaus. I am current and a month ahead, yet my balance keeps rising instead of going down. Their accounting is deceptive, abusive, and financially damaging. 

Between XXXX and XX/XX/XXXX, I have repeatedly made full and timely payments on my mortgage, yet Shellpoint Mortgage Servicing has consistently mishandled my account, misapplied payments, inflated interest, and falsely reported my balance to the credit bureaus. 

XXXX : XX/XX/XXXX : XXXX originated for XXXX at XXXX XXXX 

XX/XX/XXXX : I made my first payment of {$3600.00} early ( before the XX/XX/XXXX due date ). 

XX/XX/XXXX : I made my second payment of {$3600.00}, placing me one month ahead. 

XX/XX/XXXX XX/XX/XXXX : I began making semi-monthly payments of {$1800.00} twice a month. By mid-XXXX, I had paid a total of XXXX, equal to four full monthly payments when only three were due. 

Despite this, Shellpoint placed my funds into unapplied payments instead of crediting them when received. They repeatedly reversed and re-applied identical transactions, charged excessive interest as though my payments were late, and failed to reduce my principal balance properly. 

As of XX/XX/XXXX, Shellpoints own records show : - Only XXXX} applied to principal - {XXXX  to interest, and - A reported balance of XXXX} If payments had been credited correctly, my balance should be approximately XXXX meaning Shellpoint has overstated my balance by about XXXX and overcharged XXXX XXXX in interest. 

I contacted Shellpoint multiple times : - XX/XX/XXXX : Emailed through their website explaining the payment errors. 

- XX/XX/XXXX : Spoke with XXXX XXXX Customer Service ), who opened a complaint and promised a XXXX callback from XXXX Services XXXX 

- XX/XX/XXXX : Spoke with XXXX XXXX Customer Service ), who admitted payments were being held unapplied until the full amount is received, even though I was a month ahead. He opened complaint # XXXX, said my automatic payments would be stopped until corrected, and again promised a callback within XXXX hours, which I never received. 

Shellpoint has still not corrected my account. They continue to misapply payments and are reporting the inflated balance to credit bureaus, damaging my credit. 

This conduct violates RESPA ( 12 U.S.C. 2605 ), TILA/Regulation Z ( 12 C.F.R. 1026.36 ), FCRA ( 15 U.S.C. 1681s-2 ), and UDAAP prohibitions on unfair, deceptive, and abusive acts.

I am requesting : 1. Immediate correction of my principal balance to approximately XXXX as of XX/XX/XXXX. 

XXXX. Proper reallocation of all payments as of the date received.

3. Reversal of improper interest charges.

4. Correction of false credit reporting to XXXX XXXX and XXXX.

5. A full regulatory investigation into Shellpoints payment-application practices, which appear to be systemic and abusive. 

Shellpoints actions are financially harmful, deceptive, and unacceptable. I am seeking immediate corrective action and a formal investigation.

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