Consumer complaint received 2026-01-29 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Shellpoint Partners, LLC
State: TX

Complaint narrative:
I am filing this complaint regarding Shellpoint Mortgage Servicings improper withholding and misapplication of insurance claim funds related to a covered water loss at my residence located at XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX. 

The date of loss was XX/XX/XXXX. XXXX XXXX has issued multiple payments related to this claim, including Additional Living Expense ( ALE ) payments, reimbursements for emergency services, and Actual Cash Value ( ACV ) / Recoverable Depreciation payments specifically for repair of the dwelling. 

A Shellpoint processor recently reviewed the claim and advised that the borrower and co-borrower have received {$46000.00} in disbursements, with {$18000.00} identified as prior payments from XXXX XXXX. 

This statement demonstrates the core issue. Shellpoint is grouping together payments that are not construction funds and using those figures to justify limiting the release of insurance proceeds for repairs. 

Payments That Are NOT Construction Funds ALE Additional Living Expenses ( Temporary Housing ) These payments were issued strictly to cover temporary displacement while the home has remained uninhabitable. They are not repair proceeds and can not be used for construction. 

Out-of-Pocket Reimbursements for Emergency and Investigative Services These payments were XXXX for services already completed immediately after the loss and do not represent available repair funds : Water Mitigation XXXX XXXX XXXX : {$6900.00} Leak Detection / Access, Egress, and Regress Services : {$4500.00} These amounts were paid to stop further damage and identify the source of the leak. They were not issued for reconstruction and can not be used toward rebuilding the property. 

State Farm Claim Payments Issued ( Repair-Eligible ACV / RCV Funds ) The following payments were issued by State Farm specifically for repair of the dwelling and are the only funds that should be considered available construction funds : XX/XX/XXXX XXXX Direct Payment : {$3600.00} XX/XX/XXXX XXXX Direct Payment Supplement : {$3600.00} XX/XX/XXXX Cash Value Supplement ( Shellpoint endorsement required ) : {$16000.00} XX/XX/XXXX Supplemental + Recoverable Depreciation ( Shellpoint endorsement required ) : {$16000.00} XX/XX/XXXX ACV Supplement ( Shellpoint endorsement required ) : {$8300.00} These payments total {$47000.00} in repair-eligible insurance proceeds. 

Shellpoints {$40000.00} Limitation and Disbursement Error Despite this, Shellpoint has advised that only {$40000.00} is available for reconstruction. 

From this amount, I have received only {$31000.00} for reconstruction to date. 

This leaves a remaining balance of {$8200.00} that is still owed and should be released prior to any inspection requirement imposed by Shellpoint. 

Shellpoints figures appear to be based on the improper inclusion of ALE payments and emergency service reimbursements in their calculations, which is reducing the amount of funds being made available for actual repairs. 

Harm Being Caused Because Shellpoint is misapplying insurance funds : My home remains uninhabitable Construction is delayed due to lack of fund release My family continues to be displaced I am experiencing financial hardship due to the inability to pay contractors

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