Consumer complaint received 2020-10-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: GA

Complaint narrative:
XX/XX/XXXX - XXXX XXXX XXXX mistakenly paid out two different homeowners insurance premiums. One payment of {$1400.00} was sent to our previous homeowners insurance company to a policy that had been cancelled. Another payment of {$1200.00} was sent to our current homeowners insurance company. This was done unbeknownst to us. 

XX/XX/XXXX - XXXX XXXX XXXX sells our mortgage to NewRez LLC c/o Shellpoint Mortgage Servicing XX/XX/XXXX - We receive an escrow analysis from NewRez stating our escrow account is {$2600.00} short. After some research, we determined this shortage was due to the overpayment XXXX XXXX XXXX had made on the cancelled homeowners insurance policy. 

After multiple conversations with NewRez, they advised us to make " escrow only payments '' to catch up the escrow account. 
The following amounts were paid according to the verbatim amounts multiple representatives advised us to pay in order to balance the escrow and mortgage accounts. The payments were applied incorrectly, resulting in multiple late payment fees and late payment notices to our credit report : XX/XX/XXXX {$1000.00} - Applied as a " principal only payment '' XX/XX/XXXX {$1600.00} - Marked as " unapplied payment '' XX/XX/XXXX {$1000.00} - Applied as " Escrow only payment '' XX/XX/XXXX {$1600.00} - Marked as " unapplied payment '' XX/XX/XXXX {$2000.00} - This was an amount we were advised to pay in order to bring our account current. Unable to determine what happened to this money once it was sent to NewRez. 
XX/XX/XXXX {$1100.00} - Marked as " unapplied payment. '' This amount was supposed to make everything " balance '' according to XXXX with NewRez. He advised us to send the payment in and it would be put in the proper account. He advised us that moving forward, our monthly payment would be $ XXXXWe paid an overage of {$1600.00} each month moving forward out of an abundance of effort to ensure no further delinquencies would be threatened. 

XX/XX/XXXX - We entered into a forbearance plan as I lost my job due to Covid-19 on XX/XX/XXXX. We continued to make on-time payments of $ XXXX/month, as we had been advised to do by NewRez. 

XX/XX/XXXX - NewRez sends us an escrow analysis, wherein they had discovered an overage of {$520.00} had been paid. They sent us a check in the mail, at which point we called NewRez and asked them to simply apply the overage to our monthly mortgage payment, as they were still insisting we were not paying the required monthly amount and were behind. The escrow statement itself determined our monthly payment should read {$1600.00} and not {$1700.00}. However, they continued to bill us {$1700.00} each month, putting the {$1600.00} we were sending into a separate " suspense account. '' XX/XX/XXXX - The {$520.00} is reapplied to the escrow account as we did not cash the check, believing NewRez was doing as promised and moving that amount into our regular mortgage payment. 

Over the past 6 months, even while in forbearance, we have received letters from NewRez threatening foreclosure if we did not bring our account current. They have filed negative marks against us for late payments to all three credit reporting bureaus, making our credit scores plunge. 

We have spent countless hours on the phone with NewRez, speaking with multiple representatives, supervisors, forbearance departments, and supposed " escalation '' teams in an attempt to get our account balanced. 
Even through unemployment, we have met our mortgage obligations, paying a week ahead of time, only to receive statements every month that show us months behind with mounting late fees, foreclosure threats, and continued negative reporting to the credit bureaus. 

This is unacceptable. We are now unable to refinance due to the negative marks on our credit reports. Promise with NewRez forebearnace department has stated they have submitted requests to have the negative marks removed, but a week later another NewRez associate advised us they had no power to do that. 

At this point, we are considering legal action to force a third party audit and review of our account with NewRez, as well as account for the literal hundreds of hours we have spent over the past year and a half trying to rectify the mistakes of the mortgage companies. Additionally, NewRez has stated they would only be able to supply certain call recordings and statements of our account from their office upon receipt of a written subpoena.

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