Consumer complaint received 2025-11-15 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
CFPB COMPLAINT SYSTEMIC SERVICING FAILURE, DATA CORRUPTION, WRONGFUL FORECLOSURE RISK, AND MULTI-BORROWER HARM Consumer : XXXX XXXX Servicer : NewRez LLC d/b/a Shellpoint Mortgage Servicing Parent Company : XXXX XXXX XXXX XXXX 
Product : VA Mortgage Issue : Systemic misapplication of payments, data corruption, false delinquency, contradictory federal representations, imminent harm to borrowers I. Summary of Complaint I am filing this complaint to report system-wide data corruption, misapplied funds, false delinquency reporting, contradictory corporate representations, and imminent harm to consumers, including myself as a XXXX veteran with a VA-backed loan . 

My account has been corrupted since XXXX. 
Payments disappear, reappear, shift between months, or get placed into suspense. 
I have received another borrowers foreclosure letter, and I am now receiving correspondence from a Florida address that does not match Shellpoints declared headquarters, consistent with multi-system contamination. 

At the same time, the parent company, XXXX XXXX XXXX, is telling the CFPB that complaints naming XXXX are directed to the wrong company, while filing SEC disclosures that state the exact opposite : that XXXX owns, consolidates, controls, and profits from NewRez/Shellpoint .

These contradictions create a high-risk, multi-borrower crisis requiring urgent CFPB action.

II. Findings 1. My loan servicing data is corrupted Payments are not credited when received. 
Unapplied funds have accumulated for years. 
Conflicting ledgers produce different balances depending on the portal or department. 
Escrow values change without explanation. 
A {$3900.00} payment was moved to XX/XX/XXXX, then removed from the ledger entirely. 
Funds placed in suspense contradict the servicers own call recordings. 

2. I received a foreclosure notice belonging to another borrower This is not a clerical error.

This proves that borrower data and foreclosure processing streams are contaminated.

3. My mail is now being routed through XXXX XXXX, Florida a location that does not match Shellpoints declared headquarters Shellpoints operations are based in South Carolina.

NewRezs operations are in Pennsylvania. 
Yet I received official correspondence from : Shellpoint XXXX. XXXX XXXX XXXX XXXX, FL XXXX This is consistent with : legacy routing tables, corrupted system identifiers, and cross-database contamination. 

This is a hallmark indicator of platform-wide data instability. 

XXXX. XXXX XXXX XXXX is denying ownership of NewRez to regulators while affirming ownership to the SEC In at least XXXX CFPB responses, XXXX stated the complaint does not belong to us. 
But in its SEC filings ( Form XXXX, Form XXXX, Form XXXX, Form XXXX, and insider transactions ), XXXX : consolidates NewRez revenue and assets, describes NewRez as a wholly-owned subsidiary, grants executive compensation based on servicing-platform earnings, and states it ultimately owns a number of subsidiaries, including the entities involved in my servicing. 

These contradictory statements create what I call the Orphan Company Paradox : XXXX is enriched by NewRezs servicing income while disowning NewRez to avoid regulatory accountability for servicing failures. 



III. Evidence A. Ledger corruption and payment manipulation Multiple ledgers showing different balances.

Suspense funds acknowledged on recorded calls.

The servicer claims error, but errors of this magnitude indicate systemic failure. 

XXXX XXXX foreclosure letter I received foreclosure documents for an entirely different consumer. 
This demonstrates : cross-borrower contamination, privacy breaches, wrongful foreclosure risk. 

C. Contradictory addresses ( SC XXXX XXXX XXXX XXXX print routing ) This indicates a fragmented and corrupted data environment. 

D. Public borrower reports showing the same failures I submitted XXXX screenshots documenting years of identical harm to other consumers, including reports that parents and seniors are experiencing the same failures. 

E. SEC contradictions XXXX executives sell stock based on subsidiary earnings ( Forms XXXX and XXXX ). 
XXXX asserts ownership in every securities filing. 
Yet XXXX denies association to the CFPB. 

This is a cross-jurisdiction contradiction with consumer harm implications. 



IV. Legal Interpretation XXXX. RESPA Regulation X Violations ( XXXX C.F.R. XXXX, XXXX ) Failure to correct errors. 
Failure to apply payments when received. 
Failure to respond properly to Notices of Error.

Failure to investigate borrower disputes.

Sending another borrowers foreclosure documents.

2. TILA / Regulation Z Violations ( 12 C.F.R. 1026.36 ( c ) ( 1 ) ) Misapplication of payments and inaccurate statements constitute direct violations.

3. UDAP / UDAAP Violations ( 12 U.S.C. 5531, 5536 ) It is deceptive to : consolidate and profit from servicing operations in SEC filings, while denying ownership and responsibility in the CFPB portal to avoid accountability for servicing abuses.

4. Federal foreclosure-process violations Wrong-borrower foreclosure notices implicate wrongful-foreclosure doctrines across all jurisdictions. 

XXXX. VA XXXX Protections As a XXXX veteran, mishandling of a VA loan constitutes heightened federal concern, particularly when : data is corrupted, payments vanish, foreclosure risk is created. 

XXXX. XXXX XXXX XXXX / XXXX XXXX XXXX XXXX XXXX ( XXXX ) XXXX XXXX has : XXXX knowledge of its ownership of NewRez, CFPB-facing denials of that ownership, and an operational platform inflicting widespread consumer harm.

This is a classic breach of oversight duty under Delaware law.

V. Risk Impact Imminent, escalating, multi-borrower harm. 
The system is : corrupting ledgers, misrouting data, mixing borrower files, generating false foreclosure risk, violating federal mortgage-servicing law, and endangering veterans, seniors, and families. 

This is no longer a dispute. 
It is a platform failure with national risk. 



VI. Requested CFPB Action 1. Immediate supervisory investigation of NewRez LLC and Shellpoint Mortgage Servicing, including full data-governance review.

2. Referral to the SEC for cross-jurisdiction contradictions involving XXXX ownership claims in securities filings vs wrong company claims in CFPB responses. 
3. Order a forensic audit of my loan, including : full reconstruction of my ledger, correction of unapplied funds, reversal of false delinquency reports, verification of escrow accounting.

4. Immediate stop of any foreclosure activity due to platform instability.

5. Mandate a system-wide audit across all borrowers due to multi-year, multi-consumer evidence of identical harm.

6. Order monetary relief for damages sustained and escalating daily due to continued non-correction : {>= $1,000,000} in damages, and payoff of my mortgage, consistent with federal consumer-protection statutes, RESPA remedies, UDAAP penalties, data-governance failures, and case law involving systemic servicing misconduct.

VII. Harm to Other Borrowers ( Systemic and Widespread ) The servicing failures documented in my account are not isolated.

I have reviewed hundreds of public borrower reports, including historical data going back to XXXX, and the same patterns appear repeatedly across consumers in multiple states : Misapplied payments Suspense account dumping Conflicting ledgers False delinquency Manufactured foreclosure risk Missing payments Escrow miscalculations Inability to obtain accurate account histories Borrowers receiving one anothers documents Veterans and seniors being placed into delinquency despite making full payments These borrowers include : Elderly individuals on fixed incomes, XXXX veterans like myself, Families with children at risk of wrongful foreclosure, Parents reporting the same errors I am experiencing, Borrowers whose accounts show unexplained increases, Borrowers whose ledgers do not match their statements or portals, Borrowers who have lost homes or nearly lost them due to misapplied funds. 

I submitted screenshots demonstrating these patterns spanning multiple years and multiple servicing platforms within NewRez/Shellpoint. These are not customer-service lapses. They represent a structural failure of the underlying data environment, affecting thousands of consumers. 

Because the same errors repeat across states, loan types, and consumer profiles, this constitutes : System-wide risk to every borrower serviced by NewRez and Shellpoint. 

These patterns are identical to those observed in past federal enforcement actions against large servicers for : systemic misapplication of funds, incorrect delinquency reporting, wrongful foreclosure practices, and UDAAP violations under 12 U.S.C. 5531, 5536.

This is not an individual mistake. It is a replicated servicing defect affecting consumers nationally. 

As a XXXX veteran, my own risk is severe. But the harm is not limited to me. 
Borrowers across the country are being placed in danger through : corrupted records, inaccurate balances, loss of payment history integrity, and cross-account contamination that results in people receiving other borrowers documents, including foreclosure notices. 

This creates foreseeable and imminent harm that rises to the level of systemic consumer-risk under CFPB supervisory standards.

VIII. Requested Action for All Affected Borrowers Along with the corrective and monetary relief for my own loan, I request the CFPB initiate a platform-wide enforcement action requiring : 1. Full-servicer forensic audit A top-to-bottom examination of : payment application logic, suspense-account methodology, ledger integrity, servicing data governance, foreclosure processing, cross-borrower data contamination, and all system interfaces used by NewRez and Shellpoint. 

2. Mandatory remediation for every borrower Including : correction of misapplied funds, reconstruction of corrupted ledgers, reimbursement of wrongfully assessed fees, reversal of manufactured delinquencies, and full review of foreclosure activity to identify cases triggered by corrupted or inaccurate data.

3. Protection for veterans, seniors, and vulnerable borrowers Many veterans report suffering from identical errors involving unapplied payments and escalation to foreclosure. 
Given my own XXXX loan, I request the CFPB prioritize an immediate review of : all VA loan XXXX handled by NewRez/Shellpoint, all delinquency coding involving VA borrowers, and any foreclosure activity involving VA loans since XXXX XXXX 

4. Federal coordination with the SEC, FTC, VA, and state regulators Because the servicing failures overlap with : SEC-reporting contradictions ( Rithms ownership vs wrong company claims ), data-governance breakdowns, cross-account contamination, and multi-borrower harm across state lines, I request interagency coordination consistent with Dodd-Frank 112 and supervisory protocols for systemic consumer-finance risk.

5. Enforcement orders preventing continued use of the wrong company defense Because these contradictions contribute directly to delayed remediation and consumer harm, the CFPB should require XXXX/NewRez/Shellpoint to cease using false corporate disassociation statements.

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