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

Complaint narrative:
This submission supplements my prior filings with CFPB, Tennessee DFI, and the South Carolina Attorney General. It contains direct evidenceboth documentary and audioof systematic misapplication and concealment of payments within NewRez LLC / Shellpoint Mortgage Servicings system. 
1. Recorded Admissions : Multiple calls between XX/XX/XXXX and XX/XX/XXXX document your agents acknowledging an unapplied balance exceeding {$12000.00} and promising correction. 
These recordings confirm real-time awareness that funds were received but not credited to principal. 
Each file is timestamped and retained in lossless format for regulatory review.

2. Ledger Discrepancy ( XX/XX/XXXX ) : XXXX exported ledgers for the same account and date range show mutually inconsistent entries. 
The XX/XX/XXXX {$3900.00} Unapplied Payment reversal present in the XX/XX/XXXX PDF is deleted in the XX/XX/XXXX version, while balances remain identicalproof of post-fact alteration. 
The system therefore falsified payment history after verbal acknowledgment of unapplied funds. 
XXXX. Legal Implications : 12 C.F.R. 1026.36 ( c ) ( 1 ) ( TILA ) failure to credit payments as of date received.

12 C.F.R. 1024.35 ( b ) ( 1 ) ( i ) ( ii ) and 1024.38 ( b ) ( 1 ) ( ii ) ( RESPA Reg X ) record-integrity violations.

15 U.S.C. 1692e and 1692f ( FDCPA ) deceptive and unfair collection practices. 
Sarbanes-Oxley 802 ( a ) ( 1 ) destruction or falsification of financial records. 
XXXX v. XXXX Mortgage XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX XXXX ) and XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) confirm that post-notice ledger changes are actionable. 
4. Regulatory Notice : These materials have been transmitted to CFPB, TDFI, and the South Carolina AG.

Independent audio and bank records confirm every payment.

Continued reporting of delinquency after such notice satisfies the scienter element for willful violation under 12 U.S.C. 2605 ( f ).

Demand for Immediate Action Within 10 business days, provide written certification that : all unapplied funds have been permanently applied to principal as of their original receipt dates ; no further retroactive alterations will occur in this accounts ledger ; and a complete, unedited transaction log ( with user IDs and timestamps ) will be furnished for regulatory verification. 

Failure to comply will constitute continuing violations subject to treble damages under 18 U.S.C. 1964 ( c ) and referral to DOJ Financial Crimes Division for falsification of federally regulated records. 
Supplemental Findings XX/XX/XXXX Call Series and Ledger Correlation Recordings from XXXX customer-service calls between XX/XX/XXXX and XX/XX/XXXX confirm that NewRez / Shellpoint agents repeatedly acknowledged an unapplied balance of roughly {$12.00} XXXX. On XX/XX/XXXX an agent stated that {$750.00} would be added to complete the XXXX payment cycle and that an additional payment was scheduled for XXXX. Subsequent ledgers show that entry briefly applied to XXXX, then vanished in later exports. 

By the companys own words, XXXX of XXXX scenarios must be true : 1. If those reversals were errors, the servicer concedes its accounting system produces spontaneous inaccuracies and therefore fails the record-integrity requirements of 12 C.F.R. 1024.38 ( b ) ( 1 ) ( ii ).

2. If those reversals were accurate, then the later removal of the same entries constitutes intentional alteration of a financial record, violating SarbanesOxley 802 ( a ) ( 1 ) and Reg X 1024.35 ( b ) ( 1 ).

Either explanation establishes systemic control failure. Each call transcript aligns with a contemporaneous ledger change, showing a persistent pattern of acknowledgement followed by inconsistent remediation. These admissions demonstrate not isolated employee confusion but a corrupted servicing platform that rewrites transaction history after contact with borrowers. 

Addendum B Recorded Admissions and Chronological Proof of Ledger Manipulation Between XX/XX/XXXX and XX/XX/XXXX, XXXX recorded phone calls with NewRez/Shellpoint representatives confirm recurring acknowledgment of unapplied funds and ledger confusion. Key examples include : XX/XX/XXXX ( XXXX min ) Agent confirms total owed {$5.00} XXXX with {$2.00} XXXX unapplied, promising correction once the {$5.00} XXXX XXXX payment posts. 
XX/XX/XXXX ( XXXX min ) Representative verifies receipt of {$750.00} payment, confirmation # XXXX, to fulfill XXXX, then states unapplied balance will clearexactly matching the ledger entries later altered or deleted. 
XX/XX/XXXX ( XXXX min ) and XX/XX/XXXX ( XXXX min ) Follow-up agents admit continued system errors and inability to reconcile unapplied amounts. 
XX/XX/XXXX series ( XXXX calls ) Agents attempt account matching, discuss refinancing, and again acknowledge ongoing discrepancies. 

Each call corresponds to a specific change in the XXXX exported ledgers ( XX/XX/XXXX XX/XX/XXXX ). The recordings establish real-time knowledge of ledger corruption and failed remediation. If NewRez classifies the {$750.00} correction as an error, it admits a broken system under 12 C.F.R. 1024.38 ( b ) ( XXXX ) ( ii ) ; if it claims the entry was accurate, then its later removal constitutes record falsification under SarbanesOxley 802 ( a ) ( 1 ).

These synchronized data and audio records eliminate any plausible isolated-employee defense and prove that multiple representatives were aware of and documented the same unapplied-funds problem while the ledgers were being rewritten. 

Addendum C Historical Recorded Admissions ( XXXX XXXX ) The evidentiary record now includes calls from XX/XX/XXXX through XX/XX/XXXX, showing identical ledger irregularities and staff acknowledgments long before the XX/XX/XXXX unapplied-funds crisis. 

XX/XX/XXXX ( XXXX min ) Agent discusses mismatched payoff amounts and apologizes for system quoting errors. 
XX/XX/XXXX ( XXXX min series ) XXXX separate calls confirm a one-time {$2.00} XXXX payment scheduled against an account balance of {$5.00} XXXX, the same figure later appearing in ledgers under multiple classifications ( Regular, Unapplied, or missing ). 
XX/XX/XXXX ( XXXX min ) Representative again requests full SSN verification, states inability to locate the correct balance, and transfers the call between departments without reconciliation. 

These recordings establish that the same ledger malfunctions and unapplied-fund anomalies existed at least XXXX months before the XXXX XXXX XXXX XXXX sequence. The repetition across XXXX satisfies the pattern or practice element under 12 U.S.C. 2605 ( f ) ( 1 ) ( B ) and supports a finding of reckless disregard under 15 U.S.C. 1692k ( a ) ( 2 ) ( A ).

Combined with Addenda A and B ( ledger comparisons and later admissions ), this chronology demonstrates : 1. Continuous system errors from XXXX XX/XX/XXXX ; 2. Ongoing employee recognition without remediation ; 3. Knowledge at the supervisory level that balances and classifications were inconsistent month to month. 

Under XXXX v. XXXX ( XXXX ) and XXXX XXXX XXXX ( XXXX ), such a sustained failure to correct misapplied payments after repeated borrower contact constitutes willful RESPA/TILA non-compliance.

Formal Notice of Record-Tampering and Oversight Breach NewRez LLC XXXX XXXX XXXX XXXX XXXX 

NewRez LLC is now on documented notice that its servicing personnel repeatedly acknowledged unapplied-fund discrepancies and system errors during recorded calls spanning XX/XX/XXXX through XX/XX/XXXX, while the same transactions were later altered or deleted in XXXX separate ledger exports covering identical dates. Each recording demonstrates contemporaneous knowledge of a malfunctioning or manipulated accounting system, yet no corrective audit trail was implementedconstituting a continuing violation of 12 C.F.R. 1024.38 ( b ) ( 1 ) ( ii ) ( failure to maintain complete and accurate records ) and 12 C.F.R. 1026.36 ( c ) ( 1 ) ( failure to credit payments as of date received ). The XX/XX/XXXX sequence, in which a {$750.00} payment was first confirmed, then removed from later ledger versions, converts these acknowledgments into prima facie evidence of record falsification under SarbanesOxley Act 802 ( a ) ( 1 ) and potential obstruction under 18 U.S.C. 1519.

Because NewRez and Shellpoint operate as wholly-owned subsidiaries of XXXX XXXX XXXX XXXX this misconduct ascends directly to XXXX XXXX under the oversight-liability standards of In re XXXX XXXX XXXX. XXXX XXXX XXXXXXXX XXXX XXXX ( XXXX. Ch. XXXX ) ; XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX. XXXX ) ; and XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX. Ch. XXXX ). XXXX XXXX XXXX XXXX ( CEO ), XXXX XXXX ( CFO ), and XXXX XXXX ( Chief Legal Officer ) bear a non-delegable duty to establish and monitor information systems capable of detecting precisely these compliance failures. Their constructive knowledge of falsified ledgers, coupled with active regulatory notice, satisfies the scienter element for XXXX board liability and creates potential exposure under SOX 302 and 404 for false internal-control certifications. XXXX enrichment through uncredited borrower payments further implicates 18 U.S.C. 1962 ( c ) and 1964 ( c ) ( civil RICO ) as a continuing enterprise benefiting from record manipulation.

Immediate action is required : ( 1 ) full forensic preservation of all servicing-system databases, ( 2 ) disclosure of these control failures to investors in the next Form 10-Q/K pursuant to Exchange Act Rules 13a-15 and 13b2-1, and ( 3 ) restitution to affected borrowers consistent with 12 U.S.C. 2605 ( f ) and 15 U.S.C. 1640 ( a ). Continued inaction will evidence willful blindness under XXXX, warranting derivative and enforcement remedies at both the state and federal levels.

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