Consumer complaint received 2026-05-27 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
I have an FHA-insured mortgage serviced by Shellpoint Mortgage Servicing . Prior to our hardship, we had never made a late payment on this loan. Our hardship began in XX/XX/XXXX when I lost my job and my spouse, a XXXXXXXX XXXX, was furloughed during a XXXX XXXX. We entered a mortgage forbearance in XX/XX/XXXX and complied with all requests from the servicer during the loss mitigation review process. Our forbearance is scheduled to end on XX/XX/XXXX. During multiple communications with Shellpoint representatives, including our single point of contact and escalation staff, we were verbally informed that the only loss mitigation option available to us was a XXXX loan modification with an estimated monthly payment between approximately {$2500.00} and {$2800.00} depending on resolution of an escrow issue involving lender-placed flood insurance. Our gross household income is approximately {$4200.00} per month. The proposed payment would consume approximately 59 % to 66 % of our gross monthly income and is not affordable or sustainable. Despite repeated requests, Shellpoint has not provided us with a written loss mitigation determination explaining : which FHA waterfall options were evaluated, why other available FHA options were denied, the calculations used, or a complete breakdown of the proposed modification terms. We specifically requested written evaluation and explanation regarding : Combination Loan Modification and Partial Claim, Payment Supplement, XXXX loan modification options, and all other FHA loss mitigation options required under HUD guidelines . We were verbally told that we were not evaluated for some of these options, but no written explanation or eligibility analysis was provided. We also requested a complete itemization of approximately {$8300.00} in fees and advances that Shellpoint stated would be capitalized into the modified loan balance, increasing the balance to approximately {$300000.00}. No itemized accounting has been provided. In addition, a representative stated that certain options were not being offered because using them now could prevent us from receiving assistance again in a future hardship 10 to 15 years from now. We believe this explanation is inconsistent with HUD loss mitigation requirements and may have improperly influenced the review process. On XX/XX/XXXX, we submitted a formal written appeal requesting : a complete written loss mitigation determination, individualized reasons for denial of each FHA option, an itemized fee breakdown, confirmation that foreclosure activity would not proceed while the review and appeal remain pending, and clarification regarding any forbearance extension. As of the filing of this complaint, we still have not received a complete written determination or adequate explanation of the FHA waterfall evaluation conducted on our loan.

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