Consumer complaint received 2025-11-14 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — Foreclosure
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
I am filing this complaint because Shellpoint Mortgage Servicing has mishandled my HELOC account and loan modification in several serious ways, including false accounting, dual tracking, rejection of payments, incorrect reporting of delinquency, and potential violations of the terms of my HELOC agreement. Their actions have caused significant financial harm, unnecessary delinquency, and extreme emotional distress. 

XXXX. Draw Period Violation HELOC Terms Not Followed My HELOC originated in XXXX with an initial XXXX draw period and a maximum XXXX draw period, meaning the draw period should have ended no later than XXXX. 

Shellpoint is now claiming the draw period ended XX/XX/XXXX, which contradicts the actual contract terms and appears to artificially extend interest-only status to inflate the balance. 

This is a major concern under : TILA ( material loan term changes ) RESPA ( misrepresenting loan terms ) Contract law 2. Mishandled Loan Modification ( XX/XX/XXXX ) In XXXX, I entered into a modification with a confirmed post-modification principal balance of : {$110000.00} This included all arrears, fees, and outstanding charges. 

I paid : {$16000.00} toward the down payment ( more than required ) {$10000.00} in monthly payments until Shellpoint stopped accepting payments {$7600.00} paid through my bankruptcy trustee {$4600.00} in payments from XX/XX/XXXX to present, and they have now stopped accepting payments again. 

Despite these payments, Shellpoint refuses to apply the modification correctly and continues to misrepresent my principal balance. 

XXXX. Incorrect Principal Balance & False Accounting Shellpoints records contain major inconsistencies : Loan history shows principal : {$110000.00} ( as of XX/XX/XXXX ) Proposed modification lists principal : {$120000.00} Capitalized amount : {$10000.00} Claimed arrears : {$15000.00} These figures can not all be correct. 
They suggest : Improper capitalization of disputed fees Fabricated arrears Failure to honor the XXXX modification This may violate RESPA servicing requirements, Regulation X, and fair servicing obligations. 

4. Dual Tracking Violation Federal & State On XX/XX/XXXX, Shellpoint sent me a letter stating : Your application is complete you have protection from foreclosure while we evaluate. 

This letter triggers : 12 C.F.R. 1024.41 ( g ) ( federal dual-tracking rules ) California HBOR 2923.6 & 2924.18 Despite this : Shellpoint rejected three payments AFTER the complete-application letter.

They then resumed foreclosure actions. This is a direct dual-tracking violation.

5. Rejected Payments & Returned Funds After acknowledging my application as complete, Shellpoint : Rejected XXXX electronic payments Returned another by check Prevented multiple weekly payments from posting Shellpoint is now claiming I am delinquent over {$15000.00}, even though : The delinquency is a direct result of Shellpoint refusing to apply the payments. 
This is improper, deceptive, and potentially unlawful servicing behavior.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation