Consumer complaint received 2025-03-14 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Fees charged
Company: Shellpoint Partners, LLC
State: MI

Complaint narrative:
XXXX. Background and Mortgage Assumption See attached Lenders Certification Latter On XX/XX/XXXX, my husband and I assumed XXXX VA mortgage for the property located at XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX. In connection with this transaction, I was provided with a certification from your company ( Newrez ) indicating that the mortgage was not more than XXXX days in default. At no time were we informed of any default on the loan, including a missed payment in XX/XX/XXXX, prior to the sale and assumption of the mortgage. 
XXXX. Payment History and Miscommunication See attached XXXX XXXX Payment Summary to Newrez XXXX both XX/XX/XXXX statements. 
I have made timely mortgage payments on the following dates : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. These payments have been processed and reflected in my bank records. To date, none of the monthly statements issued by your company for XX/XX/XXXX, XX/XX/XXXX, and XXXX indicated any outstanding balance or late fees, until you amended the XXXX statement tacking on XXXX late fees. 

Despite this, I received a phone call from Newrez in XX/XX/XXXX, claiming that a payment had been missed. Upon further review, it was discovered that the missed payment was for XX/XX/XXXX, prior to our ownership of the property. The representative acknowledged this error during the call and indicated that the issue would be escalated for further review. However, this issue was not addressed in a timely manner. 

XXXX. Escrow and Insurance Discrepancies See attached Escrow Analysis with {$3000.00} due for Hazard Insurance and missing payments to Escrow In XX/XX/XXXX, I also received an escrow analysis statement showing an inflated homeowners insurance premium of over {$3000.00}. My actual premium is {$1600.00} per year. After contacting your company, it was discovered that payments made at closing were not properly applied to my account, and that my homeowners insurance was incorrectly listed as XXXX XXXX from the prior homeowner, when, in fact, it is with XXXX. Upon further investigation, your representative confirmed that the necessary corrections would be made and an updated escrow statement would be issued. As of this date, the issue remains unresolved, with the XXXX statement still reflects an additional {$200.00} due XX/XX/XXXX, due to Newrezs failure to update the account upon assumption of the mortgage. 
XXXX. Late Fees and Incorrect Account Handling See attached XXXX, XXXX, and XXXX XXXX Statements ( original from XXXX & your amended version XXXX ) Since assuming the mortgage, I have received several conflicting statements from your company, each indicating different balances owed. These included XXXX ( XXXX ) late fees, despite my husband and I consistently making timely payments. The XXXX, XXXX, and XX/XX/XXXX statements reflected no late fees or missed payments. However, a separate XX/XX/XXXX, statement was issued, adding XXXX late fees without any prior notice or explanation. Upon further investigation, it was revealed that my XX/XX/XXXX mortgage payment was purposely placed in an undispersed account. Additionally, I was informed that my account required reinstatement and that future payments should be sent to XXXX ( see XXXX Ltr from Newrez ). These ongoing errors continue to persist, and, to date, I have not received any proactive communication from your company addressing or resolving these issues. 
XXXX. Failure to Properly Apply Payments See attached payment sheet where put my payments in Unapplied status On XX/XX/XXXX, the prior homeowner, XXXX contacted Newrez and made the outstanding payment of {$2300.00} for the missed XX/XX/XXXX payment, receiving confirmation number XXXX. However, when I called on XX/XX/XXXX, to confirm the payment was applied, your representative indicated that no payment had been received, despite confirmation that XXXX had indeed contacted your company. When I requested to speak with the representative who had taken the payment, my request was denied. Upon further escalation, I spoke with XXXX and she informed XXXX and I, as I included him on the call, that the payment had been erroneously applied to an unrelated mortgage account. I was assured that the funds would be returned and applied to my account, yet you claim no error on your part. 
XXXX. Formal Request for Documentation and Resolution In light of the numerous errors and discrepancies detailed above, I formally requested the following from Newrez : XXXX. Copies of all records and communications regarding the determination that no error occurred on Newrezs part in my case. 
XXXX. XXXX recordings of each and every phone call I made to Newrez and Newrez made to us at XXXX and XXXX, including but not limited to calls related to the XX/XX/XXXX missed payment, escrow discrepancies, misapplied payment by XXXX to an unknown mortgage account, and late fees. 
XXXX. Documentation demonstrating that my husband and I were informed of the loans default status at the time we assumed the mortgage and that this information was disclosed to us at closing. 
XXXX. Documentation detailing the application of the XXXX ( XXXX ) late fees, despite having made all mortgage payments on time. 
XXXX. A full accounting of when Newrez became aware of the mortgage default and an explanation as to why this information was not disclosed to us at the time of assumption. 
XXXX. An explanation for Newrezs failure to apply the missed XX/XX/XXXX payment from the prior homeowner to my account from the {$75000.00} paid at closing. 
XXXX. Documentation as to why you sent the XX/XX/XXXX payment back to the prior homeowners and attempted to collect the payment from me.

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