Consumer complaint received 2025-09-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: WY

Complaint narrative:
What happened : I am the homeowner of the property for which Shellpoint holds the mortgage. After storm damage from XXXX XXXX, my insurer ( XXXX XXXX ) issued claim proceeds. The first check ( endorsed by Shellpoint ) went stale before I could deposit it due in part to lack of response and delay by Shellpoint to my many written queries for assistance ( copies can be provided ). This check was voided. XXXX then reissued the same fundshalf via XXXX and half by replacement check naming Shellpoint as mortgagee. The replacement funds were disbursed in this fashion due to the delays and the home falling into further disrepair as a result. 

I sent Shellpoint email on XX/XX/year> explaining to them what happened with the first check and explaining to them my concern that the replacement check would be misapplied as 'additional ' funds and would then cause them to re-categorize my claim as a 'monitored ' claim and the would hold the funds in escrow and the money would not be released to me. When they did not acknowledge or reply to my email sent to the address they explicitly instruct clients to send loss-draft concerns to, I wrote again on XX/XX/year> and to date, have not received any response whatsoever. 

I then called the Loss-draft department and as always, was directed to a noisy call center and someone who spoke broken XXXX, someone with whom I had a goodly deal of difficulty communicating. I did my best to communicate with this person, albeit I kept getting put on hold, tried to explain, was told " Yes, yes, will not hold your money, will return check ''. I was uncomfortable with the conversation so I called back, hoping to speak with someone else that could at least speak XXXX. I was able to communicate better, I thought, with the second person who seemed to at least understand what I was saying and said that I " was not to worry, I will document this in your file, Ma'am ''. 

I then created PDF documents I uploaded into Shellpoints insurance portal ( which they acknowledged receipt of ), and in spite of copies of the same being included with the replacement check, Shellpoint still misapplied the funds into escrow. 
Shellpoint has carelessly and negligently misapplied this replacement check as additional funds and diverted it into escrow, instead of endorsing and releasing it to me. This is incorrect : the check represents the same proceeds already approved and already endorsed, not supplemental or new funds. 

In spite of being explicitly told this in documents I uploaded into Shellpoints insurance portal ( which they acknowledged receipt of ), and in spite of a clear letter of explanation being included with the replacement check, Shellpoint still misapplied the funds into escrow. In spite of XXXX phone calls and XXXX EMAIL, they STILL kept the funds that they literally already signed off on less than a month ago. 

I even sent the original voided check back at my own expense by XXXX, further proving these were replacementnot newfunds. Shellpoint ignored this documentation and still withheld the money and discarded the prepaid overnight label that I provided for them at considerable expense to myself. I certainly would not have paid to overnight a check to them for them to keep it, nor would I have paid for an overnight label for them to discard. 

This error has delayed necessary storm repairs and exposed the home to additional damage. My XXXX have done work for which they can not be paid. They are angry, the home is still in disrepair and the good working relationship I have with them is suffering as a result of this negligence. 

On XX/XX/year> I called Shellpoint again regarding the replacement claim check. Initially, my call was routed through the usual call-center process. The call-center representative spoke XXXX clearly and told me that my claim had been classified as a monitored claim because it was over {$40000.00}. I immediately pointed out that the replacement check was for approximately {$15000.00}, and that half of the original funds had already been wired directly to me by XXXX. The representative responded in a patronizing tone, explaining, No maam, it was {$30000.00} plus {$15000.00}, and that is over {$40000.00}, effectively treating the replacement check as additional money rather than the reissue of the same funds already approved and endorsed. 

When I mentioned that I was preparing to file a CFPB complaint, my call was escalated to a supervisor named XXXX XXXX. XXXX placed me on hold to review the file, then returned with the same incorrect position, treating the replacement check as if it were additional funds. I pushed back and reminded her that I had already provided extensive documentation proving this was not new funding, including : XXXX. Multiple emails from XXXX confirming the reissue process, XXXX. Uploads through Shellpoints own insurance portal with photos of the original endorsed check clearly marked VOID, XXXX. A letter of explanation included with the replacement payment, and XXXX. The actual original endorsed check itself, enclosed so they could confirm it had never been cashed. 
XXXX eventually acknowledged that she could see the paperwork in their system and that the replacement check should not have been escrowed. I also raised the issue that I had paid for and provided my own FedEx overnight label to expedite the process, but Shellpoint discarded it, insisting we dont do FedEx. As a result, their mishandling has caused even further delay while the funds are routed through their slower XXXX system. 

The bottom line is that Shellpoint admitted the funds were misapplied, but their error has already resulted in weeks of unnecessary delay. Their continued insistence on treating a replacement check as additional funds directly contradicts the documentation they had in hand. 

At this time, Shellpoint has emailed me a tracking number. However, their insurance portal continues to reflect that my funds are in my restricted escrow account, an inconsistency that underscores the continued gross mishandling of my claim and represents a dereliction of their fiduciary duty to my claim.

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