Consumer complaint received 2026-05-04 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Subject : Complaint Regarding Mortgage Servicer Failure to Pay Homeowners Insurance Through Escrow Resulting in Policy Cancellation and Forced Insurance Placement Dear Consumer Financial Protection Bureau, I am writing to formally submit a complaint regarding the handling of my mortgage escrow account by my loan servicer, which resulted in the wrongful lapse and cancellation of my homeowners insurance policy and the placement of a significantly more expensive lender-placed insurance policy. My monthly mortgage payments include funds designated for homeowners insurance through an escrow account. Despite this, my homeowners insurance policy with XXXX XXXX XXXX was not paid on time by my mortgage servicer, resulting in cancellation after the grace period expired. Prior to departing overseas for approximately two months due to a family emergency, I contacted my lender by phone and was instructed on the process to ensure payment of my insurance premium. Based on this guidance, I sent an email on XX/XX/year>, to the insurance payment contact provided by the servicer, requesting payment of my insurance premium and including supporting documentation. I have records confirming that this email was successfully sent. I also sent a second email after receiving an alternate email address from another representative, and that representative confirmed receipt of both emails. Despite this, the servicer later claimed they did not receive my emails. I also spoke with XXXX XXXX XXXX and was advised that payment should be made through escrow, and I was prepared to make payment directly if necessary. During my time overseas, XXXX XXXX XXXX only sent a notice stating that the grace period had expired and payment was required. However, this notice was mailed after I had already departed and I only discovered it upon returning home last week. I did not receive any timely notification from my mortgage servicer regarding missed payments, policy lapse, or impending cancellation. Upon returning, I discovered that my homeowners insurance policy had already been cancelled. After this discovery, I sent another email to the servicer once I realized the cancellation had occurred. I contacted XXXX XXXX XXXX twice, but I was only told that the grace period had expired. The lender also stated that there was nothing they could do at that point. As a result of the cancellation, the servicer force-placed insurance on my property at an annual cost of approximately {$6000.00}, compared to my prior premium of approximately {$1500.00}. In addition, my previous policy provided {$750000.00} in coverage, while the lender-placed policy only provides approximately {$400000.00} in coverage, despite being significantly more expensive. It is important to note that the escrow account is managed by the lender, and the responsibility for timely payment of insurance premiums lies with the servicer. This issue was not caused by me, yet I am the one now suffering the consequences. I am currently facing serious financial hardship, higher insurance costs, and reduced coverage, with no meaningful assistance provided in resolving this issue. I contacted XXXX XXXX XXXX multiple times and received the same response that the grace period had expired. The lender also stated they could not assist further. I was not provided any effective resolution or support from either party. Additionally, California is currently experiencing a severe insurance market shortage, and I have an ongoing liability claim. As a result, I am unable to obtain comparable homeowners insurance coverage at a reasonable cost. I am now forced either to remain in an underinsured position or accept extremely expensive alternatives, placing significant financial strain on me and exposing my property to substantial risk. The escrow system is intended to ensure timely payment of insurance premiums, and I believe this failure represents a breakdown in servicing responsibility. I respectfully request that the CFPB review this matter and investigate the actions of the mortgage servicer regarding escrow handling, communication failures, and the resulting forced insurance placement. Thank you for your time and consideration. Sincerely, XXXX XXXX XXXX

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