Consumer complaint received 2026-01-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Newrez, LLC, d.b.a Shellpoint wrongfully purchased two separate flood insurance policies on my behalf, falsely reported missed mortgage payments to credit bureaus, assessed late fees and caused other financial losses ; additionally, caused me emotional distress, anxiety and humiliation.

As a result of Newrez/Shellpoint 's purchase of two flood insurance policies my escrow account lacked sufficient funds, so Newrez/Shellpoint increased my monthly mortgage payment. Newrez/Shellpoint increased my monthly mortgage payment by {$140.00}, from {$990.00} to {$1100.00}, to compensate for the escrow impound account shortfall.

I have maintained the same valid flood insurance policy on a continuous and uninterrupted basis from the date I purchased my home until the present. 

On XX/XX/XXXX and again on XX/XX/XXXX, Newrez/Shellpoint purchased separate flood insurance policies on my behalf. Defendant mistakenly believed that hazard insurance and flood insurance must be in separate policies, however, my hazard and flood coverage are set forth in a single policy with XXXX XXXX XXXXXXXX XXXX XXXX XXXX ( XXXX XXXX ). 

I have filed complaints with two government agencies because of Newrez/Shellpoint 's , and a prior mortgage service providers, attempts to wrongfully purchase lender placed flood insurance.

MY first complaint was lodged with the California Department of Financial Protection and Innovation ( CDFI ) against my former mortgage service provider, Specialized Loan Servicing ( SLS ). As a result of SLSs self-investigation, the company responded as follows : -Our records showed XXXX XXXX XXXX XXXXXXXX XXXX XXXX  as your homeowners insurance carrier with flood insurance included -Our record inadvertently showed that flood insurance was not included in homeowners policy. 
-We updated our records to show flood insurance is included in your homeowners insurance policy -a Lender Placed Insurance was not purchased -We Apologize for any inconvenience My second complaint was lodged with the Consumer Financial Protection Bureau ( CFPB ) against Newrez/Shellpoint. Newrez/Shellpoint responded to the CFPB with false statements including : Upon researching the issue, we determined that at the time your loan was acquired by Newrez your loan boarded with an expired flood insurance policy on file with an expiration date of XX/XX/XXXX. Newrez/Shellpoint 's statements to the CFPB were know by Newrez/Shellpoint to be false and were intended to fraudulently deceive, distract, and misdirect the CFPB in their investigation of Plaintiff 's complaint, and to defuse any accusations of fault attributed to Newrez/Shellpoint. 

In conjunction to my complaint to the CFPB, on XX/XX/XXXX I filed in XXXX XXXX XXXX XXXX XXXX an Amended Claim and Order to Go to Small Claims Court ( XXXX ) and Motion for Exemplary Damages. Myself and Newrez/Shellpoint later resolved that case, prior to trial, by executing a Confidential Settlement Agreement.

Newrez/Shellpoint has since breached the agreement by falsely asserting I have failed to make mortgage payments. Additionally, Defendant has assessed late fees, and reported false information to credit reporting companies. Newrez/Shellpoint 's actions have caused Plaintiff substantial financial losses directly resulting from the false reports. Furthermore, and because of Newrez/Shellpoint 's conduct, Plaintiff has experienced emotional distress, including hospitalization for : XXXX ( XXXX XXXX XXXX ) ; XXXX XXXX ; and XXXX ( XXXX XXXX XXXX XXXX. ) I have subsequently filed a second Amended Claim and Order to Go to Small Claims Court in XXXX XXXX XXXX XXXX XXXX against Newrez/Shellpoint and won by default judgement, however, Newrez/Shellpoint will not stop their wrongfull collection activities or false credit reporting.

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