Consumer complaint received 2025-06-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: OH

Complaint narrative:
This serves as a formal complaint regarding a severe and unprecedented escrow miscalculation by Newrez that has caused my family extreme financial hardship and significant distress. 
In mid 2024, Newrez assumed the servicing of my mortgage. As part of this transition, a new escrow analysis was conducted, primarily due to an increase in property taxes. As expected, we were charged an escrow shortfall. However, the subsequent adjustment to our monthly mortgage payment was catastrophic : it surged from approximately {$1600.00} to over {$5100.00}. 
Initially, we were informed that this drastic increase was temporary. Relying on this assurance, we stretched our finances to meet these payments for four months, nearly exhausting our liquid savings. The financial strain was immense, impacting our short-term and long-term life, financial, and education plans. Our panic intensified when we were later informed by another Newrez representative that this exorbitant payment was, in fact, a permanent change. 
Driven by desperation, I contacted Newrez again, contemplating the sale of our home. It was during this call that a representative stated that the increased payment appeared to be an " error they had never seen before. '' I was told that our entire annual escrow amount had somehow been scheduled to be due monthly. Another representative attributed the error to incorrectly listed insurance information on their side which was only visible on their system as our portal showed the correct insurance amount. Despite the conflicting explanations, it was clear that Newrez was unsure of the precise cause of this grave error. 
I was informed that a new escrow analysis would be conducted to resolve the discrepancy, with a potential resolution time of up to 60 days. Recognizing the severity of the situation, I requested to speak with a supervisor. The supervisor expressed shock, stating she was " horrified that this happened '' and had " never seen this before. '' She was sympathetic and assured me that she would expedite the complaint and contact the escrow team, promising an update within 24-48 hours.

It has now been over 96 hours, and I have received no communication.

Furthermore, I voiced a critical concern that even with a refund of excess escrow funds, my future monthly payments would still be inflated because they would be based on 13 months of escrow payments, despite my account being fully funded. My concern was dismissed, and I was simply referred to the escrow team. When I requested direct contact information for this team, I was told they are an internal department and can not be reached directly ; I must simply wait for their findings. 
The negligence displayed in this situation is unacceptable. Newrez 's egregious error has placed an unwarranted and severe financial burden on my family, leading to immense stress and forcing us to deplete our savings. The lack of clear communication, inconsistent explanations, and the inability to directly address ongoing concerns with the responsible department are deeply troubling. 
I respectfully request help in demanding an immediate and thorough investigation into this matter, a definitive explanation for the miscalculation, and a swift resolution that corrects our mortgage payment to the appropriate amount. 
Thank you very much for your assistance with this complaint.

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