Consumer complaint received 2025-10-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Shellpoint Partners, LLC
State: GA

Complaint narrative:
On XX/XX/year>, I experienced a significant plumbing leak in my home which required immediate mitigation and subsequent repairs. My insurance company promptly issued a repair check, which was double-endorsed and required to be sent to Shellpoint due to my mortgage account being delinquent at the time of loss.

Once Shellpoint received the funds, I was informed that an inspection needed to be completed before any repair funds would be released. I explained to Shellpoints Loss Draft Department that no repairs had yet been performed because the contractor required 50 % of the payment upfront in order to begin work. Despite this, Shellpoint insisted that an inspection must still occurseemingly to verify work that had not yet taken place.

After numerous emails and a phone call with a supervisor, Shellpoint changed its rationale, stating that the inspection was now required to verify that mitigation had been completed. This was a complete contradiction to the original reason provided. In a final effort to resolve the issue, my husband and I conference-called Shellpoint with the contractor. During that call, Shellpoint stated that if the inspection showed 50 % of the work had been completed, the remaining funds would be released.

In the meantime, and after enduring months of living in hazardous and uncomfortable conditions, we were finally able to fund and complete the floor repairs with previously released funds. On XX/XX/year>, an inspector came to the property and confirmed that 80 % of the repairs had been completed and recommended the release of {$16000.00} in remaining funds.

Shockingly, despite this report, Shellpoint only approved {$10000.00} for releasewithholding {$14000.00} without providing any clear or reasonable explanation. This makes no logical sense, given that only 20 % of the work remains.

This experience has left me deeply concerned. Shellpoints policy appears to : Penalize homeowners for being delinquent at the time of loss.

Delay access to critical repair funds, forcing families to live in hazardous conditions.

Create unnecessary bureaucratic obstacles, including repeated inspections, even when contradictory or unreasonable.

Provide no clear or consistent standards for fund release or communication.

This is not only unfair but potentially dangerous. These policies disproportionately impact vulnerable homeowners already under financial stress, and seem designed to profit off hardship by delaying disbursement and justifying unnecessary inspection costs.

I urge the Consumer Financial Protection Bureau to investigate Shellpoints practices regarding loss draft fund disbursements, particularly as they relate to homeowners who are delinquent. Their current policies are not aligned with reasonable repair industry standards and fail to take into account homeowner safety and basic human living conditions.

Thank you for your time and attention to this matter.

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