ComplaintsforShellpoint Mortgage Servicing

• Initial Complaint

  07/16/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I receive a letter in May 9 2024 that my mortgage was going to go down to $1908.97 previous it was $2509.59 for several months they did an escort analysis they had time to change it, I went to the app to pay my mortgage. They have not been changed. I wanted to the app.07/09/2024 to pay it again, they still have not changed it. I got into the 15 to make a payment for they hit me with a late fee. I feel that I shouldn’t have to pay that late fee due today negligent I’m reaching out to you to resolve this issue so I wouldn’t have to pay this late fee. They still have not changed it and it been five days since I notify them over five days so they have time to pay a late fee $30 late fee due to the negligent

  

  Business response

  07/19/2024

  Dear ****** ** *****:
  
  This letter is in response to the Better Business Bureau (“BBB”) correspondence received by Shellpoint Mortgage Servicing ("Shellpoint") on July 10, 2024 and correspondences received on July 3, 2024 regarding the above referenced property. 
  
  Please know that we take our customer service and consumer protection obligations seriously and have dedicated staff to identify and resolve your concerns.
  
  In your correspondence, you state that you received a letter on May 9, 2024 stating your mortgage payment would decrease from $2,509.59 to $1,908.97. You state the change was not reflected in the app when you attempted to pay on July 9, 2024 and again on July 15, 2024 resulting in a late fee being assessed. You are requesting to have the late fee assessed waived.
  
  Our research has determined the online account was accurately showing the monthly payment to be $1,908.97 with a total amount due of $1,938.97. Included in the total amount due was $30.00 in late charges.  These were accessed due to the February 1, 2024 and March 1, 2024 payments being received after the grace period expired.
  Your payments are due on the first day of each month, and you are allotted a fifteen (15) day grace period before a late charge is assessed.  Your monthly payments must be received by the fifteenth of the month to avoid a late charge.  
  
  As a one-time courtesy, the two late charges accessed for the February and March 2024 were waived on July 15, 2024. The July 1, 2024 contractual monthly payment was not received until July 17, 2024; therefore, a late charge of $15.00 was accessed to the account.
  
  
  As of the date of this letter, loan is due for the August 1, 2024, contractual monthly payment in the amount of $1,908.97.
  
  Shellpoint strives to ensure courteous and expeditious handling of any servicing issues which may arise during the time that your loan is serviced with us. Please understand that we handle all borrower comments and concerns with the utmost consideration. We regret to hear you were unsatisfied with the servicing of your account.
  
  We have researched your account and our records indicate that the monthly payment amount show in the online account as described in your dispute was not in error. We trust that we have responded to your concerns.  You have a right to request the documents relied on by Shellpoint in reaching the determinations communicated in this letter by contacting us at the number below.
  
  We appreciate your business and the opportunity to review this matter for you. For any additional inquiries or assistance, please contact Customer Service at ************* Monday through Friday from 8:00 AM to 5:00 PM CT. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page on our website at *********************. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions.

• Initial Complaint

  07/11/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  They do not answer the phone or respond to emails!!!!

  

  Business response

  07/19/2024

  Dear ******* *****:
  
  This letter is in response to the Better Business Bureau (“BBB”) correspondence received by Shellpoint Mortgage Servicing ("Shellpoint") on July 11, 2024 regarding the above referenced property. 
  
  Please know that we take our customer service and consumer protection obligations seriously and have dedicated staff to identify and resolve your concerns.
  
  In your correspondence, you state that Shellpoint does not answer the phone or respond to emails.
  
  We apologize for the experience you had attempting to reach us by phone. We are experiencing extremely high call volume and appreciate your patience.
  
  Upon research of the issue, we are unable to determine if there were any interruptions to our phones at the time your call was placed. Your correspondence did not provide essential information to review in detail. Please provide us with the dates and times of the calls made and emails sent as well as the numbers and email addresses for further investigation.
  
  Shellpoint can confirm that we received correspondence from you through our web portal on July 10, 2024, and responded the same day.
  
  We appreciate your business and the opportunity to review this matter for you. For any additional inquiries or assistance, please contact Customer Service at ************, Monday through Friday from 8:00 AM to 5:00 PM CT. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page on our website at *********************. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions.

• Initial Complaint

  06/25/2024

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  My parents died and my brothers and I are their heirs. We filed affidavits in Virginia — Real Estate Affidavit and Small Estate Affidavit. Shellpoint Mortgage is refusing to discuss the mortgage or options related to the mortgage. They requested documentation in order make me authorized to speak about the loan. I sent the paperwork as requested. Then I was told it needed to be sent to another email address. I sent that. Then I was told it needed to be faxed. I did that. Tomorrow it will have been a week since I sent in the paperwork and they still say I am not authorized. I am authorized according to the state of Virginia. I don’t understand how it is ethical to not speak with me about this loan that is past due for a payment. We are trying to figure out our options and cannot figure anything out until we get information from shellpoint.

  Customer response

  06/26/2024

  I’m happy to provide additional information regarding my complaint. 

  
  

  My father died on 9/27/23. Shellpoint says he was the only person on the loan. My mother was living in the house and received a chapter 13 bankruptcy and paid the mortgage according to the terms of the ruling. She died on 3/13/23. Once she died, we called Shellpoint to find out next steps. That phone call was unproductive.  We then waited 6 weeks for an appointment with an estate lawyer. That lawyer told us to do nothing. We got a 2nd opinion and from there contacted the probate clerk and Shellpoint. On 6/3/24, via phone call (see screenshot), I was told to email the probate paperwork (as soon as we get it), death certificate, and Photo ID. On 6/18, I sent an email requesting the correct email address to which I should send the  documents (see screenshot). The response directed to me to an email address and I sent the paperwork (see screenshot). I gave a couple days for them to process the paperwork and called on 6/20 (see screenshot). I was told I needed to send the information to another email address. I did that (see screenshot). I called on Friday 6/21 and was told they couldn’t receive the documents via email; I needed to fax them in. I did that. The fax number I was given was not the same number on their website. I sent the paperwork to both. (I will find the receipts for those faxes and send them to you.) I called yesterday 6/24 (see screenshot) and was told I am not an authorized user. I asked them how long it would take to process the information they had in their possession for almost a week and was given no answer. Just “you’re not an authorized user.”  It’s almost as if they are trying to avoid talking with me in order to foreclose without giving us any options? It is so confusing and it is frustrating to be dealing with this incompetence(?) intentional runaround (?) while also grieving the loss of both of my parents. Every single phone call with them has started with them saying “this is a recorded line.” They have it documented that I was given conflicting information each phone call. 

  
  

  I will attach copies of their death certificates. I already submitted the real estate affidavit when I filed the complaint.

  I can also submit a shellpoint bill addressed to my late father,  Charles McDaniel. 

  
  

  I will send this now and go locate the fax receipts and then send them along to you as well. 

  
  

  Thank you for your time, 

  
  

  ******** ****** 

  ************

  

  Business response

  07/09/2024

  In your correspondence, you state that your parents passed away and you and your brothers are the heirs of the property. You have filed a Real Estate Affidavit and Small Estate Affidavit in the state of Virginia. You have provided the documentation to Shellpoint; however, the company will not discuss the account with you. You have sent the documentation to the company via email, fax and the company still does not show you as authorized. You are attempting to figure out what options are available for this loan.
  
  Upon the receipt of the correspondence regarding the authorization issue, we have reviewed the documentation you provided to the CFPB and the BBB to add you as the Successor in Interest (“SII”) and authorized on the loan. As a result, we have updated our records to show you as the confirmed SII and authorized on the loan.
  
  As of the date of this communication, your principal balance is $114,671.40. Please note, this amount does not include any interest, fees, debits, credits that may have accrued to date. Because you have been added as authorized, you will be able to receive monthly statements and other information regarding the loan.
  
  The loan is currently contractually due for the March 1, 2022 installment and all subsequent monthly installments. Because of the loan’s default status, the account has been referred to foreclosure proceedings as of December 2, 2019, and the foreclosure sale date has been scheduled to occur on September 11, 2024. To inquire as to what options may be available to resolve the loan’s default status, please contact our Loss Mitigation Department at ************. Enclosed for your review is a copy of the loss mitigation package sent to the mailing address on file with documentation to complete to seek loss mitigation assistance.
  
  Finally, our records show, we previously received documentation from ******* ******** and ****** ********, requesting to be added as authorized. After further review, it has been determined to be able to add the above mentioned third parties as confirmed SII and authorized, Shellpoint will require copies of each individual’s photo identification to be able to speak to them regarding the loan.
  
  As of the date of this letter, the loan is contractually due for the March 1, 2022 through July 1, 2024 monthly installments totaling $18,589.74. 

• Initial Complaint

  06/10/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Before my loan was sold to Shellpoint Mortgage in Dec 2023, I had requested an escrow analysis and refund with the prior company since my escrow was overfunded. Shellpoint was supposed to honor that and did not. They said they will do it in Feb 2024. When I called in Feb, they said they will do it in May. This is Jun 2024, and they have still not done it. Their policy says they should have done in February. I have called them over 15 times, and every time their customer support tells lies and keeps pushing it. I have an excess over $14,000 in my escrow account which I demand asap with a 6% interest. I also want them to exclude tax and insurance from my escrow as I can pay these myself, given their history. Thanks

  

  Business response

  06/20/2024

  Dear ******** ********** *********:
  
  This letter is in response to the Better Business Bureau (“BBB”) complaint received on June 10, 2024 and correspondence received in our office on May 26, 2024, and June 8, 2024 regarding the subject property.
  
  Please know that Shellpoint Mortgage Servicing takes its customer service and consumer protection obligations seriously and has dedicated staff to identify, resolve, and permanently correct operational deficiencies.  
  
  Your complaint states prior to the service transfer of your loan, you requested an updated escrow analysis due to an overfunded escrow account. You state your request has been delayed by Shellpoint from February 2024 through June 2024 and your request remains unresolved. You are requesting to have the excess $14,000.00 refunded to you. Additionally, you are requesting to have the escrow account closed as you wish to pay your taxes and insurance yourself.
  
  Please be advised, a request to have an updated escrow analysis was originally made on March 15, 2024. However, on April 4, 2024, the request was denied as the loan was a fairly new loan. Please keep in mind the loan originated in August 2023; therefore, we need to ensure all yearly bills are correct. A second request was made May 16, 2024, to have an updated escrow analysis completed. On June 11, 2024, the updated analysis was generated and found an escrow surplus of $8,585.43 which was sent on June 11, 2024.
  
  According to the escrow analysis completed on June 11, 2024, the monthly payment is $3,784.77, effective with the July 1, 2024. The escrow account is analyzed by taking into account the total amount of the anticipated payments from escrow over the next 12-month period and spreading them over 12 months to determine the “base” escrow amount. The anticipated disbursements are typically based of the previous year’s disbursements and were calculated as follows:
  
  Anticipated Escrow Disbursements:
  
  County Taxes: $12,411.73
  Hazard Insurance: $1,886.04
  
  Total Anticipated Escrow Disbursements: $14,297.77
  
  Base Escrow Payment Calculation: $14,297.77 / 12 = $1,191.48
  
  The required starting escrow balance at the time of the analysis was $9,531.85, and the actual escrow balance at that time was $18,117.28; therefore, the escrow surplus of $8,585.43 was determined.
  
  Regarding your escrow removal request, we have forwarded this over to our Escrow Department for review. Once the review is complete, you will be advised under a separate cover of our decision.
  
  Shellpoint respectfully declines your request for compensation.
  
  As of the date of this letter, the loan is contractually due for the July 1, 2024 installment of $3,784.77.
  
  Please accept our sincere apologies for any inconvenience regarding generating an updated escrow analysis and sending your escrow surplus. Please know that Shellpoint takes its customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization.
  
  For any additional inquiries or assistance, please visit our website at www.shellpointmtg.com. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************, ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at ************. 

• Initial Complaint

  06/07/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  This company (Newrez) took over in some fashion of Specialized Loan Services (SLS) my loan servicer. They have made it impossible to get to SLS website (forcing a transfer to Newrez site) and made it impossible to make a payment online. When forced to create new login information, I wound up re-logging in several times only to find I could do nothing. The crux of the problem is their contact information is useless when trying to make sure my account is current or get answers on this transition. Contact information consists ONLY of an 800 number which is completely automated, even when asking for a human contact! I'm pretty sure if my payment doesn't process at the first of the month (because I can't set up payment online) they will charge me late fees and probably report to credit bureaus late/no payment. Bottom line, this business ought to make sure they have it together before making a transition to a new system. This is being handled poorly and there is no feedback mechanism to alert them to the nasty customer service they are providing.

  

  Business response

  06/26/2024

  Your complaint states since the transfer of your loan servicing you have had difficulty making your mortgage payment online. You feel that if you are unable to make your payment online by the 1st of the month you will be charged late fees and reported to the credit bureaus as late.
  
  Newrez LLC dba Shellpoint Mortgage Servicing (“Shellpoint”) mailed an informational letter to you on May 2, 2024, explaining the transition of your loan servicing from the Specialized Loan Servicing (“SLS”) brand to the Shellpoint brand. As explained, your loan number remains the same, as do the terms of your loan. Because there are changes being made by SLS and Shellpoint, certain information may not be readily available during the first few days of the migration.  However, please know that when a loan is within the initial 60-day transition period, Shellpoint will not assess any late fees nor report late payments to the Consumer Reporting Agencies (“CRAs”), as it may take up to 60 days to migrate all payments and/or documents.
  
  As of the date of this correspondence, the loan is next due for the July 1, 2024, installment for $611.63.
  
  For any additional inquiries or assistance, please visit our website at **************. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at *************************** or by phone at ************, Monday through Friday from 8:00 am to 5:00 pm CT. You may also contact Customer Service at *************

  Customer response

  06/27/2024

  Better Business Bureau,
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. I have been able to set up payment online, which was the gist of my concern.
  
  Regards,
  
  ***** **********

• Initial Complaint

  03/20/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  My 10/1 Arm for an investment property had its first readjustment. The loan was locked for 10yrs at 3.89%. In anticipation of the adjustment, I confirmed with NewRez, more than once, that my loan terms were such that the most my loan could adjust, up or down, was 2% at one time. Thus, my new rate would be 5.89%, after the initial 10 years, which ended at the end of 2/24. I also confirmed that I could pay down principal right up until 2/28/24, the last day before the adjustment, thus lowering my payment. I began paying down principal at the end of 2023, and by the end of February -- before the 28th -- I paid the loan down to a principal just under $80,000. I was told by NewRez that my new payment would be in the mid-500s on a rate of 5.89%. But since March 1st, they now say I'm on a 7.75% rate and my payment is $1,063. This is incorrect. I have called repeatedly but no one I have spoken to, including a supervisor, has ANY knowledge of anything pertaining to my loan or why the numbers say what they say. I have been told that someone would be getting back to me within 30 days, which is TOTALLY unacceptable, and not to mention I have zero confidence in whoever is going to contact me then. I have filed a complaint with the Financial Protection Bureau as well. This is a terrible company, in my experience dealing with them. I'm in the fortunate position of being able to pay off the remains balance of the loan; I would rather carry the debt, but the incompetence at NewRez is making me reconsider. It's very annoying. I literally just want them to correct my account.

  

  Business response

  03/26/2024

  Your complaint states the Adjustable-Rate Mortgage (“ARM”) was locked at an interest rate of 3.89% for the first 10 years of the loan. Prior to the interest adjusting, you confirmed with Newrez the loan could not adjust for more than 2.00%. You also confirmed that is paid down the principal before February 28, 2024, the loan would adjust to about $500.00, with a 5.89% interest rate. Newrez is now stating your rate is 7.75% and the installments are $1,063.00, which is incorrect. Additionally, payments are based on a $132,000.00 principal balance, yet our balance is less than $80,000.00. You believe Newrez is practicing predatory lending. You are requesting for Newrez to provide you with the terms of your loan, for the rate to be adjusted to 5.89% and for the payments to be adjusted based on the $80,000.00 principal balance.
  
  Per the enclosed Fixed/Adjustable-Rate Note, the loan originated on February 18, 2024, with Quicken Loan, Inc with a 3.875% interest rate. The rate was to remain a fixed rate for the first ten years of the loan, and the first-rate adjustment would be effective March 1, 2024.
  
  Under Section D – Limits on the Interest Rate Changes: the interest you would be required to pay at the first Change Date would not be greater than 8.875% or less than 2.250%. Thereafter, your adjustable interest rate would never increase or decrease by more than 2.00%.
  
  The interest rate was calculated by taking a published "index rate" and adding a certain number of percentage points, called the "margin." Under your loan agreement, your index rate is the Refinitiv USD IBOR Consumer Cash Fallback 12-Month, which at the time of the calculation was 5.47106% and your margin was 2.25%. The index rate plus margin were rounded to the nearest 0.125%:
  
  5.47106% + 2.25% = 7.72106%. Rounded to the nearest .125% = 7.75%
  
  The Refinitiv USD IBOR Consumer Cash Fallback 12-Month index is published Daily in *****************************************************************************************
  
  We can confirm we receive principal payments in the amount of $10,000.00, $20,000.00, $9,618.48 $12,000.00 on February 7, 2024, February 12, 2024, February 15, 2024 and February 27, 2024, respectfully. Each principal payment decreased the principal balance to $80,000.00 by the last principal payment received on February 27, 2024. However, the new amount calculations took place on January 22, 2024. In order to have used the decreased principal balance to calculate the new principal and interest payments, the principal payments should have been submitted before January 22, 2024. At the time the calculations were made, our system calculated a principal balance of $130,773.85 based om the current unpaid principal balance and payments due before the change.
  
  Per the ARM Change Notice mailed on August 9, 2023, by ********, the estimated interest rate effective April 1, 2024, would be 8.25000%. Per the September 3, 2023, ARM Change Notice mailed by Newrez, the estimated interest rate effective April 1, 2024, would also be 8.25%. Per the January 22, 2024, Subsequent Interest Rate Adjustment Notice, the new interest rate effective April 1, 2024, was 7.75%.
  
  On March 21, 2024, Newrez received funds in the amount of $40,342.50 and the loan was paid in full.  
  
  Per your correspondence, you mentioned predatory lending practices. As the servicer, Newrez does not have knowledge of the loan closing or any other aspects of the loan unrelated to the servicing. Newrez respectfully advises that any further investigation regarding these claims be directed to the original lender or closing agent.
  
  As of March 21, 2024, the loan is paid in full.
  
  Although Newrez apologizes for any inconvenience, we have been unable to determine that an error occurred after investigating your dispute. You have the right to request documentation supporting our determination.

• Initial Complaint

  03/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  Our mortgage was sold to New Rez on August 8, 2023. There was money in our escrow account to pay the real estate tax for the 2nd half of 2023. It was not paid by New Rez. We received a delinquent notice from our city tax department. We immediately notified New Rez but weeks have gone by and the tax is still not paid. I have called, faxed, sent online messages and live chatted, and still cannot get the issue resolved. There will now be penalties assessed and our account with the city is showing past due payments.

  Customer response

  03/05/2024

  Good morning,

  
  

  I received notice today that the company resolved my issue that I had made this complaint about (#********).  

  
  

  Thank you for your assistance,

  
  

  ***** ****

• Initial Complaint

  03/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  My mortgage loan for my condo was transferred from Caliber to NewRez in October 2023. In the letter of transfer, they assured us that we did not have to take any action except to set up a login for the NewRez account. Two months after the transfer, I received threatening mail stating that NewRez didn't have any HOA hazard insurance information and that I needed to submit it ASAP or else they would add lender-placed insurance to my account. I sent them the required documents on time, but they still added lender-placed insurance to my account, and on February 8, 2024 they opened an escrow account to pay for that insurance. I've called them twice about that error and both times they said they would remove the escrow account and return the funds debited from my account for the lender-placed insurance. In addition to the phone calls, I sent them this request in writing and let them know that I pay my insurance premiums separately from my mortgage account and that they were paid in full. To date, they still have not removed the escrow account from my mortgage account. I'd like them to refund the money they debited from my account for the lender-placed insurance and then close the escrow account.

  

  Business response

  03/14/2024

  In review of the complaint, Newrez can confirm, we previously addressed your concerns via our response dated February 13, 2024. To ensure your concerns are addressed the below information is provided.  
  
  The loan was transferred to Newrez on or about October 1, 2023, from ******* **** ***** ************ as mentioned in your complaint. The transfer of the servicing of the loan does not affect the terms and conditions, other than those related to the servicing of the loan.
  
  Pursuant to the terms of insurance requirements on the mortgage security instrument, for as long as the property is financed, it must be insured. Section 5 of the enclosed mortgage security instrument advises it is the homeowner’s responsibility to provide proof of insurance when requested. Since your property is a condo and your loan closed after January 1, 2012, you are required to provide both proof of your HOA master hazard insurance coverage and unit owner’s (“HO6”) coverage for your property. Since insurance is required for your property, we will maintain insurance on the property by purchasing an LPI policy when proof of your insurance policies has not been received.
  
  When active or sufficient proof of insurance is not available, Newrez is required to send the notices requesting proof of insurance out no less than 45 days prior to purchasing insurance for a property. If needed a second notice is sent out 30 days later, advising once again of the intent to purchase insurance if proof of coverage is not received. This letter provides the homeowner with an additional 15 days to provide the needed proof of insurance before a LPI policy is purchased on your behalf. 
  
  Please note, when the servicing of a loan is transferred, it may take up to 60 days for all the loan information to be transferred from the prior servicer. When your loan was transferred, we did not receive all of the required hazard insurance information from your prior servicer. Therefore, on December 7, 2023, after the 60-day transfer period, we sent our first notice requesting proof of HOA hazard insurance and HO6 coverage. Because no acceptable proof of insurance coverage was received showing your HOA and HO6 insurance coverage, a second and final notice was sent on January 8, 2024 and on January 24, 2024, an LPI policy was purchased.
  
  After the receipt of the required HOA and HO6 insurance coverage, the LPI was cancelled on February 7, 2024, effective as of December 10, 2024. Accordingly, the LPI was refunded on February 26, 2024, for the amount of $196.35, which was the full amount paid for the LPI initially at the time it was purchased.
  
  Records show, an escrow analysis was completed on February 26, 2024, which was completed prior to the receipt of the LPI refund, adjusting the monthly payment from $469.48 to $472.73 effective April 1, 2024. Nonetheless, a new escrow analysis was completed on February 28, 2024 which closed the escrow account and returning the payment to $469.48 consisting only the principal and interest payment. Enclosed for your review is the most recent analysis conducted.
  
  Although Newrez apologizes for any inconvenience, we have been unable to determine that an error occurred after investigating your dispute. You have the right to request documentation supporting our determination.

  Customer response

  03/15/2024

  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.

  However, this has been a long and grueling process in which I was treated very poorly by NewRez customer service. I have never defaulted on a loan and have always provided the necessary documentation. The first letter I received about this from NewRez was so poorly written that I thought it was a scam mail. Then it wasn't clear that they needed both the HOA insurance and my personal homeowner's insurance. By the time they realized their error in adding lender-placed insurance to my account, it took them at least a month to remove it and fix the status of my account. I received numerous letters and emails from them that overlapped and contradicted each other. This is the worst mortgage company I've ever had to work with, and I can see from the complaints of other NewRez clients that they think so too. This never should have happened in the first place. Clearly NewRez did not communicate well with ******* in securing the insurance information of thousands of people whose loans were transferred. They preferred to blame their clients instead of following up with ******* to get the required documentation. No insurance policy connected to my condo was ever inactive or expired as they claimed. In all of my years of refinancing, I've never had to resubmit insurance information; it's always transferred over. NewRez says there was no error on their part, but this whole debacle was an error from the start. Thank you, BBB, for helping to resolve this issue. For all the trouble NewRez has caused, I would like a statement in writing from them that they will NEVER open an escrow account on my loan again.
  
  Regards,
  
  ***** ******

• Initial Complaint

  03/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  As a 100% disabled military veteran, I am exempt from real property taxes on my home, effective March 13, 2022. I've been trying to work with my mortgage company, NewRez, for the past year to have them stop charging me these taxes, including recouping overpayment of taxes from March 13, 2022, until the present date. While the City of Chesapeake has reimbursed me a portion of the overpaid taxes, they have sent the remaining reimbursement/overpayment amount to NewRez for them to disperse back to me. Despite countless conversations, contacts, and attempts, NewRez has yet to return the remaining overpayments to me. While I understand that an escrow analysis needs to be conducted, I have waited several months for it to be completed. I called them again on February 23, 2024, and there has not been any progress, only that an analysis must be conducted. Lastly, even though the City of Chesapeake, VA, exempts me from paying real property taxes, NewRez is still charging me on my monthly mortgage bill with real property taxes that I no longer have to pay since March 13, 2022. Any assistance you can provide me would be greatly appreciated.

  

  Business response

  03/27/2024

  Dear ******* ** *****:
  
  This letter is in response to the Better Business Bureau (“BBB”) complaint received on March 4, 2024 regarding the subject property. Newrez LLC d/b/a Shellpoint Mortgage Servicing is currently the owner of the account number ending in ****. Newrez LLC (“Newrez”) began servicing the loan on behalf of the owner referenced above on or about November 2, 2022. 
  
  Please know that Newrez LLC takes its customer service and consumer protection obligations seriously and has dedicated staff to identify, resolve, and permanently correct operational deficiencies.  
  
  Your complaint states you are a 100% disabled military veteran and became exempt from real property taxes on your home as of March 13, 2022. You have been trying to get Newrez to stop paying your county taxes and to reimburse overpayments. You have waited several months for an escrow analysis to be completed, with no progress and are continued to be charged on your monthly mortgage bill. You are requesting a refund for the tax payments.
  
  Upon review, Newrez received three tax refunds in the amounts of $1,633.17 each and one tax refund in the amount of $1,762.96 on January 3, 2024. Additionally, we received a tax refund in the amount of $1,762.96 on March 1, 2024.
  
  After receiving the most recent refund, the tax line on your account has been updated to reflect your tax exemption. On March 26, 2024, an analysis was completed to reflect the tax exemption and refunds. According to the escrow analysis the monthly installment updated from $2,270.87 to $1,704.05 effective with the April 1, 2024 installment. Additionally, the analysis determined a surplus in the amount of $9,252.26 which was issued on the same day via check number *******.
  
  The escrow analysis and surplus will be mailed to you under a separate cover.
  
  As of the date of this communication, the loan is due for the April 1, 2024 installment in the amount of $1,704.05.
  
  Please accept our sincere apologies for any inconvenience regarding the delay in completing an updated escrow analysis. Please know that Newrez takes its customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization.
  
  For any additional inquiries or assistance, please visit our website at www.newrez.com. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************, ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at *************

  

  Business response

  03/27/2024

  Dear ******* ** *****:
  
  This letter is in response to the Better Business Bureau (“BBB”) complaint received on March 4, 2024 regarding the subject property. Newrez LLC d/b/a Shellpoint Mortgage Servicing is currently the owner of the account number ending in ****. Newrez LLC (“Newrez”) began servicing the loan on behalf of the owner referenced above on or about November 2, 2022. 
  
  Please know that Newrez LLC takes its customer service and consumer protection obligations seriously and has dedicated staff to identify, resolve, and permanently correct operational deficiencies.  
  
  Your complaint states you are a 100% disabled military veteran and became exempt from real property taxes on your home as of March 13, 2022. You have been trying to get Newrez to stop paying your county taxes and to reimburse overpayments. You have waited several months for an escrow analysis to be completed, with no progress and are continued to be charged on your monthly mortgage bill. You are requesting a refund for the tax payments.
  
  Upon review, Newrez received three tax refunds in the amounts of $1,633.17 each and one tax refund in the amount of $1,762.96 on January 3, 2024. Additionally, we received a tax refund in the amount of $1,762.96 on March 1, 2024.
  
  After receiving the most recent refund, the tax line on your account has been updated to reflect your tax exemption. On March 26, 2024, an analysis was completed to reflect the tax exemption and refunds. According to the escrow analysis the monthly installment updated from $2,270.87 to $1,704.05 effective with the April 1, 2024 installment. Additionally, the analysis determined a surplus in the amount of $9,252.26 which was issued on the same day via check number *******.
  
  The escrow analysis and surplus will be mailed to you under a separate cover.
  
  As of the date of this communication, the loan is due for the April 1, 2024 installment in the amount of $1,704.05.
  
  Please accept our sincere apologies for any inconvenience regarding the delay in completing an updated escrow analysis. Please know that Newrez takes its customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization.
  
  For any additional inquiries or assistance, please visit our website at www.newrez.com. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************, ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at *************

  Customer response

  03/30/2024

  Better Business Bureau,
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ******* *****

  Customer response

  03/30/2024

  Better Business Bureau,
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  ******* *****

• Initial Complaint

  03/01/2024

  Complaint Type:

  Delivery Issues

  Status:

  Resolved

  More info

  Like most mortgage companies, NewRez LLC requires property insurance settlement checks to be made payable to them in order to escrow and release initial and progress payments. NewRez provided a procedure letter explaining that I could expect an initial disbursement from these funds within 7-10 business days although it has been 30 days and I still have not received a disbursement much less an explanation of when I will receive one. My account number and other identification is in the attached NewRez letter. Below is an outline of my actions and contact with the company: On 1/14/24 - I mailed a packet of documentation and a check from Chubb Insurance in the amount of $256,388.97. The packet was delivered on 1/16/24. On 2/05/24 - I made phone contact with "BR"(individual's initials), Escalation Specialist Loss Draft Department. She was very pleasant and acknowledged my packet was received on 1/19/24 and that she would make inquiry concerning the delay. (see attachment for "BR" company contact information) On 2/9/24 - I received an email from "BR" stating the initial disbursement still has not been processed. On 2/15/24 - I received an email from "BR" again stating that the initial disbursement has not been made and that she would once again send an email to management. As of today 2/16/24 - It has been 30 days since NewRez received the insurance proceeds and documentation. I have yet to receive the initial disbursement or a call from management that I previously requested explaining the hold-up. Lacking any meaningful response from NewRez, I am wondering if the company is in financial difficulty or if their management is purposely delaying disbursement while using this large cash balance to their advantage while leaving me unable to provide the roofing and other contractors an initial payment to cover the necessary supplies to start repairs to our home.

  

  Business response

  03/15/2024

  Your complaint states on January 14, 2024, you mailed Newrez an insurance claim check for $256,388.97. The check was received by Newrez on January 16, 2024. On February 5, 2024, the Loss Draft Department confirmed they had received the check and on February 9, 2024, you were informed the first disbursement was still being processed. The same update was provided on February 16, 2024. As of March 1, 2024, you have yet to receive the first draw from your insurance claim funds. You are requesting Newrez disburse the initial draw of $85,454.00.
  
  Although Newrez is the servicer of your account, we must comply with the rules set by the investor on your loan. In addition, the repairs you make to your house must comply with applicable government codes and regulations governing residential repair or reconstruction. This includes building codes, zoning codes, work permits, and inspections.
  
  For claims over $40,000.00, to protect the investor’s interest in the property, certain documentation and inspection are needed for insurance claim funds to be released. This is done to ensure the repairs needed on a property are completed and the home is returned to its pre-loss condition.
  
  It is extremely important that Newrez receive all items listed below to process the initial draw for your claim. Newrez will do its part to ensure the claim process moves as quickly and smoothly as possible, however we will not be able to release any funds until the required documents are received and complete.  Please allow 7-10 business days for the initial draw once the completed documents are received:
  
  Claim check with back signed by all parties other than Newrez LLC.
  The complete/fully itemized adjustor’s report issued by your insurance company.
  Signed and accepted contractor’s proposal.
  Newrez Loss Draft Claim Form (please complete page 4 and return to us).
  Contractors signed and completed W9 (if your loan is delinquent)
  
  On January 3, 2024, you informed our Loss Draft Department you had received a claim check from your insurance carrier for $256,388.97. You were instructed to mail the endorsed check, adjusters report and contractors’ agreement. On this same day, during a second call, you informed our Loss Draft Department you were wanted to pay off the loan and had the difference from the payoff and the claim funds issued to you. A payoff quote was requested.
  
  The claim check was received January 22, 2024 and sent for deposit on January 23, 2024.
  
  On January 29, 2024, you informed our Loss Draft Department you no longer wanted to pay off the loan and decided to start repairs on the property. You were informed to allow the documents to be reviewed and to initiate the draw process.
  
  The funds were placed in a restricted escrow account on February 8, 2024. A request to release $84,608.36 was submitted on February 9, 2024, and on February 19, 2024, your initial draw check was mailed to the address on file. Per the *** tracking number, ****************** the check was received February 20, 2024.
  
  In order to release additional funds, a signed waiver of lien and 95 percent repair completion will be required.
  
  For any questions or concerns you may have regarding your loss draft funds, please contact our Loss Draft Department at ***** *********
  
  As of the date of this correspondence, the loan is past due for the March 1, 2024 installment of $1,737.81.
  
  Although Newrez apologizes for any inconvenience, we have been unable to determine that an error occurred after investigating your dispute. You have the right to request documentation supporting our determination.
  

  

  Business response

  03/15/2024

  Your complaint states on January 14, 2024, you mailed Newrez an insurance claim check for $256,388.97. The check was received by Newrez on January 16, 2024. On February 5, 2024, the Loss Draft Department confirmed they had received the check and on February 9, 2024, you were informed the first disbursement was still being processed. The same update was provided on February 16, 2024. As of March 1, 2024, you have yet to receive the first draw from your insurance claim funds. You are requesting Newrez disburse the initial draw of $85,454.00.
  
  Although Newrez is the servicer of your account, we must comply with the rules set by the investor on your loan. In addition, the repairs you make to your house must comply with applicable government codes and regulations governing residential repair or reconstruction. This includes building codes, zoning codes, work permits, and inspections.
  
  For claims over $40,000.00, to protect the investor’s interest in the property, certain documentation and inspection are needed for insurance claim funds to be released. This is done to ensure the repairs needed on a property are completed and the home is returned to its pre-loss condition.
  
  It is extremely important that Newrez receive all items listed below to process the initial draw for your claim. Newrez will do its part to ensure the claim process moves as quickly and smoothly as possible, however we will not be able to release any funds until the required documents are received and complete.  Please allow 7-10 business days for the initial draw once the completed documents are received:
  
  Claim check with back signed by all parties other than Newrez LLC.
  The complete/fully itemized adjustor’s report issued by your insurance company.
  Signed and accepted contractor’s proposal.
  Newrez Loss Draft Claim Form (please complete page 4 and return to us).
  Contractors signed and completed W9 (if your loan is delinquent)
  
  On January 3, 2024, you informed our Loss Draft Department you had received a claim check from your insurance carrier for $256,388.97. You were instructed to mail the endorsed check, adjusters report and contractors’ agreement. On this same day, during a second call, you informed our Loss Draft Department you were wanted to pay off the loan and had the difference from the payoff and the claim funds issued to you. A payoff quote was requested.
  
  The claim check was received January 22, 2024 and sent for deposit on January 23, 2024.
  
  On January 29, 2024, you informed our Loss Draft Department you no longer wanted to pay off the loan and decided to start repairs on the property. You were informed to allow the documents to be reviewed and to initiate the draw process.
  
  The funds were placed in a restricted escrow account on February 8, 2024. A request to release $84,608.36 was submitted on February 9, 2024, and on February 19, 2024, your initial draw check was mailed to the address on file. Per the *** tracking number, ****************** the check was received February 20, 2024.
  
  In order to release additional funds, a signed waiver of lien and 95 percent repair completion will be required.
  
  For any questions or concerns you may have regarding your loss draft funds, please contact our Loss Draft Department at ***** *********
  
  As of the date of this correspondence, the loan is past due for the March 1, 2024 installment of $1,737.81.
  
  Although Newrez apologizes for any inconvenience, we have been unable to determine that an error occurred after investigating your dispute. You have the right to request documentation supporting our determination.
  

  

  Business response

  03/29/2024

  Your complaint states although you have received the initial claims disbursement, the information provided in the prior response contains several inaccuracies. You never requested for the funds to be applied to the payoff of the loan. You only inquired if the funds could be used to pay off the loan or if any remaining fund would be applied to the mortgage or refunded to you. Per the **** tracking number, Newrez received the claim check and packet on January 16, 2024, yet Newrez states they didn’t receive it until January 22, 2024. The response also stated the loan was past due for the March 15, 2024, installment, which is incorrect.
  
  Our records indicate you spoke with a supervisor from our Loss Draft Department on January 3, 2024, and were provided with the below options on how the claim funds could be utilized:
  
  Paying off the loan and receiving the remaining funds back in order to repair the home.
  Repair the home and have the remaining funds released once an inspection at 95% completion was received.
  Inform your insurance carrier you were not repairing the home. 
  
  During the call you were informed to endorse and mail the claim check in addition to the adjusters’ report and contractor’s proposal. The claim draw process was also provided during the call. The same information was provided to you on January 8, 2024.
  
  Based on the January 3, 2024, conversation, a payoff quote was requested on January 23, 2024.
  
  On January 29, 2024, you informed our Loss Draft Department you were not wanting to pay off the loan, and you were going to start the repair process and requested for the initial draw to be released. You were advised your claim processor would be informed that you were going to repair the home and to allow time for the documents to be reviewed and for the initial draw to be requested and sent out.
  
  On February 5, 2024, the claim funds in the amount of $256,388.97 were placed in a restricted escrow account. Please note, due to the amount of the claim, Newrez had to ensure the funds cleared before the initial draw took place.
  
  Once the funds cleared, on February 9, 2024, a request for your initial draw was submitted and on February 19, 2024, funds in the amount of $84,608.36 were mailed to the address on file.
  
  As previously explained, in order to release the remaining funds, a signed waiver of lien and 95% repair completion is required.
  
  For any additional questions or concerns you may have regarding the status of your claim or in order to schedule a progress property inspection, please contact our Loss Draft Department at ***** *********
  We apologize for the incorrect due date provided in our prior response. We can confirm the March 1, 2024, installment was satisfied on March 13, 2024.
  
  As of the date of this correspondence the loan is next due for the April 1, 2024, installment for $1,737.81.
  
  Please accept our sincere apologies for any inconvenience this may have caused. Please know that Newrez takes its customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization

  

  Business response

  03/29/2024

  Your complaint states although you have received the initial claims disbursement, the information provided in the prior response contains several inaccuracies. You never requested for the funds to be applied to the payoff of the loan. You only inquired if the funds could be used to pay off the loan or if any remaining fund would be applied to the mortgage or refunded to you. Per the **** tracking number, Newrez received the claim check and packet on January 16, 2024, yet Newrez states they didn’t receive it until January 22, 2024. The response also stated the loan was past due for the March 15, 2024, installment, which is incorrect.
  
  Our records indicate you spoke with a supervisor from our Loss Draft Department on January 3, 2024, and were provided with the below options on how the claim funds could be utilized:
  
  Paying off the loan and receiving the remaining funds back in order to repair the home.
  Repair the home and have the remaining funds released once an inspection at 95% completion was received.
  Inform your insurance carrier you were not repairing the home. 
  
  During the call you were informed to endorse and mail the claim check in addition to the adjusters’ report and contractor’s proposal. The claim draw process was also provided during the call. The same information was provided to you on January 8, 2024.
  
  Based on the January 3, 2024, conversation, a payoff quote was requested on January 23, 2024.
  
  On January 29, 2024, you informed our Loss Draft Department you were not wanting to pay off the loan, and you were going to start the repair process and requested for the initial draw to be released. You were advised your claim processor would be informed that you were going to repair the home and to allow time for the documents to be reviewed and for the initial draw to be requested and sent out.
  
  On February 5, 2024, the claim funds in the amount of $256,388.97 were placed in a restricted escrow account. Please note, due to the amount of the claim, Newrez had to ensure the funds cleared before the initial draw took place.
  
  Once the funds cleared, on February 9, 2024, a request for your initial draw was submitted and on February 19, 2024, funds in the amount of $84,608.36 were mailed to the address on file.
  
  As previously explained, in order to release the remaining funds, a signed waiver of lien and 95% repair completion is required.
  
  For any additional questions or concerns you may have regarding the status of your claim or in order to schedule a progress property inspection, please contact our Loss Draft Department at ***** *********
  We apologize for the incorrect due date provided in our prior response. We can confirm the March 1, 2024, installment was satisfied on March 13, 2024.
  
  As of the date of this correspondence the loan is next due for the April 1, 2024, installment for $1,737.81.
  
  Please accept our sincere apologies for any inconvenience this may have caused. Please know that Newrez takes its customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization

  Customer response

  04/03/2024

  Better Business Bureau,
  I have reviewed the response made by the business in reference to complaint ID ******** and although I will accept it as closure of this case I remain disappointed and concerned that the NewRez reviewing representative continues to miss the point that in the packet of required forms was the insurance check, the required forms and a LETTER FROM ME (previously submitted) making it CRYSTAL CLEAR that I was requesting an initial draw to fund the start of home repairs. That packet was delivered on January 16th  (per **** tracking previously submitted) and opened by the company a few days later. So the bottom line is that NewRez had clear written instructions from me on January 16th and after receiving such, it took 35 days to receive the first disbursement check. To clarify my point of view and their mistakes, I wish to reply to the misleading statements in their last response.
  
  NewRez writes of my call of January 29th  - I called because the initial disbursement was taking longer than expected. The representative said I had requested a payoff to which I replied that I never requested such (as can be verified by reviewing call recordings). In any event, my cover letter delivered on January 16th stated very clearly that I was requesting an initial draw to repair the storm damage to my home. Yet, it was February 20th that I received the first disbursement.
  
  NewRez writes of needing time to be sure the insurance check cleared. They received it on the January 16 and wrote of depositing it 20 days later on February 5 and then waiting another 4 days for the check to clear. This 24 day process of a $256,388.97 check is concerning for a company handling such a large financial transaction.
  
  I hope that I don't receive additional poor turn around time unintentionally or otherwise when I make the final draw from my escrowed funds.
  
  Regards,
  ***** * ******

  Customer response

  04/03/2024

  Better Business Bureau,
  I have reviewed the response made by the business in reference to complaint ID ******** and although I will accept it as closure of this case I remain disappointed and concerned that the NewRez reviewing representative continues to miss the point that in the packet of required forms was the insurance check, the required forms and a LETTER FROM ME (previously submitted) making it CRYSTAL CLEAR that I was requesting an initial draw to fund the start of home repairs. That packet was delivered on January 16th  (per **** tracking previously submitted) and opened by the company a few days later. So the bottom line is that NewRez had clear written instructions from me on January 16th and after receiving such, it took 35 days to receive the first disbursement check. To clarify my point of view and their mistakes, I wish to reply to the misleading statements in their last response.
  
  NewRez writes of my call of January 29th  - I called because the initial disbursement was taking longer than expected. The representative said I had requested a payoff to which I replied that I never requested such (as can be verified by reviewing call recordings). In any event, my cover letter delivered on January 16th stated very clearly that I was requesting an initial draw to repair the storm damage to my home. Yet, it was February 20th that I received the first disbursement.
  
  NewRez writes of needing time to be sure the insurance check cleared. They received it on the January 16 and wrote of depositing it 20 days later on February 5 and then waiting another 4 days for the check to clear. This 24 day process of a $256,388.97 check is concerning for a company handling such a large financial transaction.
  
  I hope that I don't receive additional poor turn around time unintentionally or otherwise when I make the final draw from my escrowed funds.
  
  Regards,
  ***** * ******

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