Consumer complaint received 2025-10-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Supplemental to complaint number XXXX Subject : Misapplication of XXXX XXXX XXXX XXXX, Inflated Escrow Payments, and Failure to Correct Billing Errors This Notice of Error is submitted pursuant to 12 C.F.R. 1024.35 to identify and request correction of multiple servicing errors originating with XXXX XXXX and continued by Shellpoint Mortgage Servicing. These errors concern the handling of state assistance funds from the XXXX XXXX XXXX XXXX XXXX XXXX  ), misapplied escrow accounting, and Shellpoints failure to correct an overbilled payment amount after I repeatedly asked them to review my account. 

This complaint supplements prior communications and relates to CFPB Complaint # XXXX. 

Factual Background XXXX XXXX XXXX ( During XXXX XXXX ) : The XXXX XXXX XXXX XXXX approved funds to bring my loan current, covering both delinquent mortgage payments and past-due property taxes. XXXX XXXX failed to request the tax portion of the approved funds. Consequently, XXXX sent only the mortgage-payment portion. XXXX applied those funds solely toward mortgage principal and interest, leaving property taxes unpaid. XXXX then advanced its own funds to pay those past-due property taxes taxes that should have been covered by XXXX and created a false escrow shortage. This caused my monthly payment to increase from approximately {$2800.00} to {$3000.00}, even though the underlying property-tax obligation itself had not increased. The shortage resulted solely from XXXX mismanagement and failure to request the appropriate assistance funds. 

Second XXXX XXXX ( Also During XXXX XXXX  ) : A later round of XXXX funds included both mortgage and tax components. This assistance brought my account fully current and paid all past-due property taxes in full. The relief briefly decreased my mortgage payment ; however, XXXX XXXX never reconciled or corrected the false shortage created during the first assistance round. As a result, the account continued to reflect an inflated escrow balance, even though all property taxes had been paid after the second round of assistance. A scheduled adjustable-rate increase later raised the payment slightly, but the underlying overcollection from the earlier shortage remained embedded in the account. 

Transfer to Shellpoint ( XX/XX/year> ) : When Shellpoint took over servicing, it imported XXXX XXXX inflated escrow balance and continued billing me {$3000.00} per month. I made multiple verbal requests by phone asking Shellpoint to perform its own escrow analysis, as I believed the payment amount was incorrect. Shellpoint representatives repeatedly said they were not required to conduct a new analysis until their next scheduled cycle. Despite my repeated requests, Shellpoint refused to perform an updated analysis until XX/XX/year>. This demonstrates a lack of reasonable diligence, contrary to 12 C.F.R. 1024.35 ( a ) and ( e ) ( 1 ) ( i ).

Shellpoints Escrow Analysis ( XX/XX/year> ) : Shellpoints analysis dated XX/XX/year>, determined that my correct monthly payment should have been {$2800.00}, effective XX/XX/year>. This reflects my true contractual obligation for principal, interest, and property taxes. My account does not include insurance escrow. The same analysis revealed a separate {$3600.00} surplus in my escrow account, confirming that it had been overfunded for months prior. While Shellpoint may not have initially known of XXXX error, its own analysis confirmed the correct payment amount. At that point, Shellpoint had knowledge of the miscalculation but failed to retroactively correct prior billing discrepancies or refund the surplus, in violation of 12 C.F.R. 1024.17 ( f ) ( 2 ).

Errors Requiring Correction Failure to properly apply state-provided assistance funds, in violation of 12 C.F.R. 1024.35 ( b ) ( XXXX ). 

Failure to reconcile the escrow account after the second XXXX assistance when all past-due property taxes had been fully paid. 

Failure to refund or credit surplus escrow funds, in violation of XXXX ( f ) ( XXXX ). 

Continuation of a fabricated escrow shortage, resulting in inflated monthly payments. 

Failure to act with reasonable diligence in response to multiple borrower requests. 

Failure to adjust the billed payment from {$3000.00} to {$2800.00} after confirming the corrected amount. 

Requested Resolution Please : Audit my account from the first XXXX assistance forward. 

Remove all false escrow shortages created from misapplied funds. 

Retroactively correct my payment to {$2800.00} from the earliest date the miscalculation began, which predates Shellpoints onboarding. While Shellpoint may not have initially known of the miscalculation, its XX/XX/year> escrow analysis confirmed the true payment amount. From that point forward, Shellpoint had knowledge of the error but failed to correct prior overbilling. Refund or credit the difference between {$3000.00} and {$2800.00} for all affected months. 

Apply credits for overbilling before and after XX/XX/year>. 

Apply or refund the {$3600.00} escrow surplus. 

Provide a full itemized accounting of all XXXX funds and escrow disbursements. 

Confirm corrected balances in writing within XXXX business days, per RESPA. 

As stated in my prior complaint, I continue to dispute all foreclosure-related attorney fees and legal charges assessed during periods when assistance review or account correction was pending. These charges must be audited, fully explained, and, if found improper, reversed and credited to my account. 

Respectfully, XXXX XXXX XXXX

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