Consumer complaint received 2025-09-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Shellpoint Partners, LLC
State: CO

Complaint narrative:
XX/XX/XXXX : I received the denial letter regarding my request to assume the loan for my home due to divorce. 
- The reasons provided in the letter were : -- Insufficient Income for Total Obligations -- Insufficient income for Mortgage Payments- Additionally, via email the Mortgage Consultant at the company provided me the following information they said they got from underwriting : -- XXXX : out of scope ( beyond XXXX ). Capital Gains is unable to be used as it is not supporting a consistent level of trading activity. XXXX was {$84000.00} and XXXX was {$7600.00}. In order to use Capital Gains, first thing that must be documented is a two-year consistent cash flow. Decline for insufficient income for total obligations, insufficient income for mortgage payments. 
- These numbers only make sense if they didnt include my capital gains income at all in the consideration which is not how it is supposed to be handled according the XXXX XXXX or XXXX  XXXX  guidelines. 
- Specifically, XXXX XXXX  Guidelines for Capital Gains ( XXXX other income ) say the mortgage company is supposed to -- Use a XXXX average to calculate the monthly income amount and -- Use the Most recent two years of realized capital gains to calculate that amount- I also told them I have documentation that my realized capital gains income for XXXX has already exceeded my capital gains income for XXXX and that the assets supporting that income have also grown during that time as well. 
- Furthermore, Ive been making the payments on the house since XX/XX/XXXX per the divorce orders so clearly I can and have been able to afford the payments. 
- However, they never asked for additional documentation. I had provided them everything they said they needed to process the assumption up-front, and then they never asked for anything else. Even after I told them I had additional documentation that would resolve the issues they raised, they still went on to deny and close the application without giving me a chance to submit it. They told me I would have to reapply if I wanted the new documentation to be considered knowing that when I first applied for this assumption they told me they would get back to me within 10 days, and then didnt get back to me to start the process of the assumption for 4 months because they were so backed up. 
- That means they ignored current evidence in their decision, and made it based on an out-dated and incomplete record, in addition to mishandling the capital gains income in their calculations. 
XX/XX/XXXX : Sent a formal letter to appeal the of denial of my mortgage assumption by email to the emails their denial letter said to reach out to AND the email their phone customer service department had told me to send it to when I spoke to them that morning - Sent follow-up email on XXXX XXXX - Sent follow-up email on XXXX XXXX - Sent follow-up email on XXXX XXXX- They never responded to these emails XXXX XXXX : Then sent a copy of the letter by certified mail on XXXX XXXX - Tracking shows NewRez received it on XX/XX/XXXX. 
XXXX XXXX : I sent a separate letter asking for all the details and documentation used in the decision - Specifically asked for : -- Provide a full explanation as to why my application was denied, including but not limited to what requirements, rules or regulations my application supposedly did not meet, and the math that resulted in that decision. 
-- Disclose the additional information used to make your decision as stated in the denial letter : Our Credit decision was based in whole or in part on information obtained from an affiliate or from an outside source other than a consumer reporting agency. 
- XXXX XXXX : They responded -- They did not provide the documentation or details requested they simply reattached the denial letter and provided no new information. 
-- Their response was sent from a no-reply email address. The only option they provided to respond to them is to use the web form in the Help section of their web portal, which I dont have access to even though I have an account, because its an option that is not visible from the dashboard screen only appears when you click in to the account details screen. I cant see it or access that form from my account on their web portal because am not on the loan I am trying to assume, because at the time we could qualify for the loan with just my ex-husband 's income information that they know and is part of the record for this assumption since they had to get a letter from my ex-husband saying I could assume the loan before we could even start the assumption process originally. So effectively, they provided no way for me to respond to this communication.

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