Consumer complaint received 2025-11-17 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Complainant : XXXX XXXX ( XXXX Veteran Permanent & Total ) Product : VA Mortgage Servicing Companies : XXXX XXXX XXXX / NewRez LLC / Shellpoint Mortgage Servicing * * Nature of Complaint : Servicer-Created Delinquency, Misapplication of Payments, Ledger Corruption, Wrongful Foreclosure Threats, Privacy Violations, and Harm to a XXXX Veteran Summary of Immediate Harm My VA mortgage has been placed into false delinquency, misstated as 3 months behind, and sent into foreclosure processing, despite : documented timely payments a recorded {$12000.00} unapplied balance contradictory ledgers across multiple systems misapplied payments escrow manipulation resulting in baseless shortages issuance of a foreclosure reinstatement letter that is factually impossible receipt of another homeowners foreclosure packet I am a XXXX XXXX XXXXXXXX XXXX XXXX XXXX Veteran. 
The servicer violations below constitute federal violations and imminent harm. 



SECTION I. FACTUAL EVIDENCE OF SERVICER MISCONDUCT 1. Misapplied Payments and False Delinquency I provided recorded call proof from XX/XX/year>, where a Shellpoint agent verified : I owed only {$750.00} I was NOT behind My account contained {$12000.00} in unapplied funds Agent explicitly stated funds would cover XXXX, XXXX, XXXX Yet simultaneously : Another CFPB response from my alternate CFPB login states : I was three months behind Reinstatement amount was {$10000.00} Another reinstatement demand states {$140000.00} These can not coexist. 
This is servicer-created delinquency. 



2. Contradictory Ledgers ( Three Versions ) I uploaded : newrezXXXX newrezXXXX NewRez XX/XX/XXXX account.pdf Shellpoint payment-history ( XXXX ) XXXX Each ledger contains different : balances unapplied amounts escrow values next payment due dates principal balances delinquency timelines This violates federal accounting rules and creates imminent foreclosure risk. 



3. Issuance of Foreclosure Notices While Holding My Payments I received a Shellpoint foreclosure reinstatement letter dated XX/XX/year>, demanding : {$140000.00} by XX/XX/year> Listing payments due XX/XX/year> Listing escrow shortages of {$11000.00} This was while Shellpoint was holding my payments unapplied and acknowledging ( on call ) that I owed only {$750.00}. 

This is an unlawful, manufactured default. 



4. Receipt of Another Homeowners Foreclosure Packet I received another borrowers foreclosure notice, including : their name their address their delinquency their reinstatement amount their escrow data This is a catastrophic privacy breach, violating : Gramm-Leach-Bliley Act ( 15 U.S.C. 68016809 ) CFPB Regulation P State privacy laws VA servicing protections 5. Escrow Fraud on a VA Loan My VA Note states my payment = {$3400.00}. 

Shellpoint/NewRez charged me $ XXXX wrongful increase of over $ XXXXmonthwithout justification. 

Despite overpaying, my escrow shows negative shortages. 

This indicates : diversion of escrow failure to apply escrow payments creation of artificial deficiency SECTION XXXX. APPLICABLE LAW AND VIOLATIONS 1. RESPA Reg X ( 12 C.F.R. 1024.17, 1024.35, 1024.38 ) Servicer violated : 1024.17 ( k ) improper escrow accounting 1024.35 ( b ) ( 3 ) failure to apply payments correctly 1024.35 ( b ) ( 11 ) inaccurate servicing 1024.38 ( a ) failure to maintain policies ensuring accurate records 1024.41 foreclosure prohibition during servicing error disputes 2. TILA Reg Z ( 12 C.F.R. 1026 ) Violations include : inaccurate periodic statements failure to reflect correct payment application misleading delinquency disclosures 3. VA Servicing Regulations ( 38 C.F.R. Part 36 ) Servicer violated federal requirements to : maintain correct accounting avoid servicer-created default apply payments immediately protect veterans from wrongful foreclosure avoid unlawful fees or payment diversion VA rules were broken across the board. 



4. UDAAP ( Dodd-Frank Act, 12 U.S.C. 5531 & 5536 ) The following constitute unfair, deceptive, and abusive acts : false delinquency reporting contradictory accounting withholding payments false foreclosure notices increasing a VA borrowers payment without basis sending another borrowers foreclosure packet emotional and psychological harm to a XXXX veteran 5. FDCPA ( 15 U.S.C. 1692 ) Because Shellpoint identifies as a debt collector : false representation of the amount owed threats of foreclosure based on false information failure to validate debt 6. Gramm-Leach-Bliley Act ( GLBA ) Privacy Violations Sending me another borrowers foreclosure packet violates : 15 U.S.C. 6801 ( b ) CFPB Regulation P SECTION III. DAMAGES REQUESTED * * 1. Actual, Statutory, and Compensatory Damages : {>= $1,000,000} Basis for damages : 3 years of corrupted servicing psychological/emotional harm aggravated by my XXXX XXXX XXXX XXXX XXXX XXXX wrongful foreclosure threats system-wide ledger corruption hundreds of hours of work statutory damages under RESPA, TILA, FDCPA, UDAAP lifetime financial impact caused by improper delinquency reporting repeated failures to correct the ledger even after multiple disputes 2. Mortgage Relief Requested Immediate full loan payoff Removal of all negative reporting Removal of all late fees and false delinquencies Correction of all ledgers Enforcement of VA regulations Audit of entire servicing platform SECTION IV. PUBLIC HARM AND SYSTEMIC RISK This is not just my loan. 

The presence of : contradictory ledgers other homeowners documents mailed to me {$12000.00} sitting unapplied reinstatement letters with impossible numbers indicates system-wide corruption of the servicing database. 

Thousands of VA borrowers are likely in : false delinquency wrongful foreclosure pipeline escrow manipulation data contamination Immediate regulatory intervention is required. 



RELIEF REQUESTED FROM CFPB Open an enforcement investigation Refer violation package to : VA Regional Loan Center FTC ( privacy violations ) DOJ Civil Rights ( veteran protections ) Order full audit of XXXX/NewRez/Shellpoint servicing Require full ledger reconstruction Require loan payoff and compensation

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