ComplaintsforShellpoint Mortgage Servicing

• Initial Complaint

  02/02/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  Shellpoint Mortgage sent me a notice on 6-Nov saying that my HOA hazard insurance expired even though it didn't and I have proof of insurance for both the HOA-carried policy and our individual property policy effective as of Jun 2023. On 21-Nov, my HOA's insurance carrier sent proof of coverage (via fax) to Shellpoint and I also uploaded my personal homeowners policy to the link they provided in their notice (************************). On that page, it says, “Your insurance data was saved. If there are any difficulties processing your insurance data you will receive an email message at [my email address].” Never heard anything so I called a few days later to confirm and was told they received the online portal one I submitted and that the fax should be received soon based on when it was sent. I didn’t get an email that there was an issue processing the documentation I had shared. Next, I got a notice in the mail dated 24-Nov-2023 where they stated they cancelled lender-placed insurance effective 14-Nov and considered the matter handled. But of course, that's not all. While I was out of town, Shellpoint sent another notice (via snail mail) on 6-Dec claiming they could not verify coverage between Sep and Nov 2023 (even though both insurance policies were effective from Jun 2023 onward). Then in a 26-Dec notice, they said they were taking $970.55 from my escrow account for lender placed coverage. As of Dec 1, they sold my mortgage to another servicer which meant when I couldn't get through to speak to a person while calling their customer service line since my loan number was "inactive". A quick ****** search shows that Shellpoint is no stranger to these predatory practices regarding lender-placed coverage and unfortunately, it seems little has changed since their 2021 settlement for exactly the same behavior. Please review my insurance documents and refund the money you took from our escrow account for coverage we didn't need.

  

  Business response

  02/12/2024

  After review for hazard insurance coverage on November 21, 2023, the unit owner’s (“HO6”) coverage, reflected an effective date of November 14, 2023 through November 14, 2024. As such, it was determined there was a lapse of insurance coverage from September 1, 2023 through November 14, 2023. Hence, on December 6, 2023, a notice requesting evidence of your HO6 policy from September 1, 2023 through November 14, 2023 was issued. Because this documentation was not received, a notice explaining an LPI policy would be purchased was issued on December 26, 2023.
  
  Pursuant to the terms of insurance requirements on the mortgage security instrument, for as long as the property is financed, it must be insured. 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.
  
  After further review, it was confirmed the policy with **** for your HO6, policy number ************, was in fact effective June 23, 2023 through June 24, 2024. Hence, a lapse of insurance coverage through your HO6 **** policy did not occur. Accordingly, the LPI was cancelled effective as of January 8, 2024.
  
  Shellpoint would like to confirm, although a notice was sent stating the escrow account would be charged $970.55, the proper information confirming that your HOA and your HO6 coverage was received. Therefore, $970.55 was not charged to or deducted from the escrow account and no refund is due to the loan.
  
  The enclosed payment history confirms the escrow account was transferred to ** ******** ***** ***** ** *********, with a balance of $7,566.25.
  
  According to your current correspondence, you are unable to reach Shellpoint via phone as the loan has been transferred. Please be advised, the Interactive Voice Response (“IVR”) systems require you to verify your loan before being successfully transferred to our Customer Service Department. However, you may follow prompts to bypass the IVR verification and would be transferred to our Customer Service Department for verification.
  
  For additional information regarding your loan, please contact your new loan servicer Chase to the following mailing address or toll-free number listed below:
  
  ** ****** ***** ***** ** *** ***** **** **** ******** *** ****** **** ******* ** *****
  Toll-free number: ************
  
  Please accept our sincere apologies for any inconvenience this caused regarding the LPI. Shellpoint takes our customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization. 

  Customer response

  02/13/2024

  
  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 sent both insurance policies to Shellpoint at the same time so the miss is 100% on their end for not validating the dates of coverage on all documentation provided. 

  I appreciate confirmation they did not charge our escrow for the unnecessary insurance. Since they transferred my loan to a new servicer in December, I had no way of knowing the insurance was cancelled in January - I did not receive any communication from them to this effect until now, after following up. 

  
  Regards,
  
  ******* ******

• Initial Complaint

  02/01/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  On February 1, 2023, ******* **** ***** auto drafted my account in the amount 0f $3,420.53 for my mortgage payment. Apparently, my account was transferred to Newrez on February 2, 2023 in which there was a second attempt to charge me again for the month of February 2023. There were insufficient funds. I only recently discovered there was a $20.00 non sufficient funds (NSF) added to my bill. I tried to call multiple times to resolve the situation. I don't feel I need to eat the cost of an NSF when it was their error. I've been told a couple of versions from reps I've spoken to on the phone of what "may" have happened, but at the end of they day they tried to collect two payments for one month which resulted in the NSF. I'm in the process of sending notice to Newrez, January 25, 2024, along with my bank statement and the NSF notice from my bank to show them the error was on them and not me. I am reporting to BBB, because now I'm irritated with the time and effort I've had to exert for them to do right by their error (hours spent on the phone, going to the post office, etc). This is a horrible business practice. Would it have been easier to just pay the NSF? Absolutely, but it isn't the right thing to do. I'm naming Newrez as the company in question, because I was told Caliber and Newrez fall under the same company and their the ones who billing this NSF to my account.

  

  Business response

  02/09/2024

  Dear ***** ** *********:
  
  This letter is in response to the Consumer Financial Protection Bureau (“CFPB”) complaint received on February 1, 2024, the Better Business Bureau (“BBB”) complaint received on February 1, 2024, and correspondence received on February 2, 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 February 2, 2023. 
  
  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 the prior servicer, ******* **** ***** ***********, drafted your bank account on February 1, 2023, in the amount of $3,420.53. The loan was transferred to Newrez on February 2, 2023, and a second attempt to draft the payment was made causing a non-sufficient funds (“NSF”) fee of $20.00. You contacted Newrez to dispute this because it was a Newrez error but have not received a response. You want the NSF fee removed and an apology.
  
  In review of our records, you set up a recurring Automated Clearing House (“ACH”) draft with the prior servicer, Caliber, on their website on January 2, 2023, and the first draft would occur on February 1, 2023. This payment was drafted by Caliber and posted on the loan on February 1, 2023.
  
  On February 1, 2023, you called the prior servicer and made a payment with a representative and these funds were forwarded to Newrez on February 3, 2023, which posted to the loan on February 8, 2023. Caliber received notification from your financial institution that the payment made with the representative was returned as insufficient funds; therefore, Caliber notified Newrez of the returned payment and Newrez reversed the payment on February 13, 2023. As a result, the NSF fee of $20.00 was assessed on the loan. Our research determined the NSF fee of $20.00 is valid and will not be removed from the loan.
  
  As of the date of this correspondence, the loan is due for the March 1, 2024 installment of $3,420.53.
  
  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 that no error has occurred in the servicing of the loan.
  
  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 contact me at ***** ******** Monday through Friday from 7:00 a.m. to 4:00 p.m. (PST). You may also contact our Customer Service department at ***** *********
  
  Sincerely,
  ******* ******
  Compliance Department
  Newrez LLC
  
  Enclosure: Loan History Statement
  
  cc: Consumer Financial Protection Bureau
  
       Better Business Bureau

  Customer response

  02/14/2024

  Good morning,

  
  

  Ms. ****** with Newrez reached out to me this morning. She said they were going to waive the NSF fee to resolve the issue. It should reflect in my next statement. We'll see. 

  
  

  I appreciate your assistance in this matter.

  
  

  Respectfully,

  ***** ********* 

• Initial Complaint

  01/23/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Lender placed insurance was put on my account due to a problem with documentation provided showing insurance coverage. After speaking with the insurance dept. I was able to get this removed however was told that the adjustment would not be completed until a reassessment was done to calculate payments. This results in me paying approx $705.27 over what I have previously been billed and NewRez refuses to adjust prior to me needing to pay this without incurring a delinquency. I am paid in full as of 1/17/2024 which was also the most recent date of speaking with NewRez insurance and customer support departments.

  

  Business response

  02/02/2024

  Pursuant to the terms of insurance requirements on the mortgage security instrument, for as long as the property is financed, it must be insured. 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 homeowner’s association (“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.
  
  Newrez is required to send this notice out no less than 45 days prior to a servicer purchasing insurance for a property. If needed a second warning notice is sent out 30 days later, advising the customer once again of the intent to purchase insurance if proof of coverage is not received. This letter provides the customer with an additional fifteen days to provide the needed proof of insurance before the purchase is made.
  
  Per the review completed, Newrez issued two warning notices on June 26, 2023 and July 26, 2023, requesting proof of HOA master hazard insurance coverage. Because proof of the HOA policy was not received, we proceeded to purchase an LPI policy on August 11, 2023, in which confirmation was sent on the same day. The LPI policy became effective June 18, 2023 through June 18, 2024.  Enclosed are copies of the LPI warning notices and LPI Binder sent.
  
  Due to the addition of the LPI, a new escrow analysis was completed on November 2, 2023, which adjusted the monthly payment from $1,585.06 to $2,290.33 effective January 1, 2024. The analysis calculated an escrow shortage of $5,716.07, which was spread over a period of 60 months at a cost of $95.27. A shortage occurs when the projected balance is less than the required balance.
  
  During the month of December 2023, there was a change in the premium amount of the LPI. As a result of the change, the escrow account was refunded the amount of $1,103.57 effective December 8, 2023, from the amount previously charged of $2,298.38.   As a result of the LPI refund, a new escrow analysis was completed on December 16, 2023, which adjusted the monthly payment from $2,290.33 to $1,973.09 effective February 1, 2024. The analysis completed calculated an escrow shortage of $1,857.17, and spread the shortage over a period of twelve months at a cost of $154.76 per month.
  
  On January 8, 2023, you contacted our offices regarding the removal of the LPI, during the telephone conversation with the service representative it was explained that in order to remove the LPI we would need a copy of the HOA policy confirming active coverage. Once the documentation was received, then we would be able to complete a new escrow analysis to adjust the monthly payment to reflect the removal of the LPI.
  
  The required HOA documentation was received on January 18, 2024, and was processed by our Insurance Department on that day.  A request was then submitted to refund the LPI charged to the loan on January 19, 2024. Records show, two LPI refunds were issued, the first refund was deposited in the escrow account on January 19, 2023, for the amount of $577.30, while the second refund was deposited in the escrow account on January 23, 2024, for the amount of $201.34.
  
  After the receipt of each refund, a new escrow analysis was completed on January 26, 2024. The analysis adjusted the monthly payment from $1,973.09 to $1,658.41 effective February 1, 2024. The analysis calculated an escrow shortage of $479.01, which was spread over a period of twelve months at a cost of $39.92. Enclosed for your review is a copy of the analyses completed for this loan.
  
  Please note that a shortage occurs when the projected balance is less than the required balance. The escrow account is short in meeting the cushion requirement at the lowest point in the projected analysis. The servicer may add an amount to maintain a cushion no greater than one-sixth of the estimated total annual payments from the escrow account.
  
  Newrez is not able to overfund the escrow account, we are allowed to collect only sufficient funds to pay the escrow items, and a cushion of one-sixth of the total escrow amount. As noted on your escrow analysis, paying the shortage does not guarantee that your payment will remain the same as it was previously. 
  

• Initial Complaint

  01/23/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  The Shellpoint Mortgage company escrow analysis is wrong. They are saying that I was negative 6,496.53 in escrow. However, today this changed to another amount (4600.00). So according to their math, they are saying that I did not make any escrow payments last year at all. My homeowners insurance was $4,753.58 and taxes were $1743.58. The total being $6,496.53. When reviewing this information I have found that they did not show escrow payments to my account as I was making payments. Please see attached Escrow Analysis January 2024.pdf. I average 3-6 months ahead on all of my mortgage payments generally making monthly plus payments. Those payments include a portion that goes to escrow for each payment automatically. Please see attached Mortgage Payment History.pdf. They have added this negative balance to my current mortgage payment changing my monthly escrow to $1083.12. This literally means that I will be paying 12,997.44 a year in escrow. As of January 13, 2024, (according to my account ledger) my escrow balance is a positive $872.19. This is after my October 2023 taxes were paid in the amount of $1743.58. Yet they say I am negative as of January in the amount of 4600 plus. Please see the attached Mortgage Payment History.pdf. My homeowners insurance has yet to be determined as the insurance company non-renewed my homeowners insurance. I have been on the phone with the mortgage company and each time I have to go over this again and again. They finally see what I am talking about and promise to have it reviewed. Next time I call? I get to start all over again because no one did anything the first time. Just telling me whatever I want to hear just to get me off the phone. My house payment went from $754.00 to $1,547.80 due to their mistake. Apparently, I am not going to get anywhere with them.

  

  Business response

  02/01/2024

  Dear ***** *** ******
  
  This letter is in response to the Consumer Financial Protection Bureau complaint received on January 22, 2024 and the Better Business Bureau complaint received on January 23, 2024 regarding the subject property.  ********** ******* **** ******** FSB, not its individual capacity but solely as Owner Trustee for ***** ************** Trust 2022-3 is currently the owner of the account number ending in ****.  Shellpoint Mortgage Servicing (“Shellpoint”) began servicing the loan on the behalf of the owner referenced above on or about March 1, 2022. 
  
  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 Shellpoint is stating the escrow balance is incorrect with a negative balance of $6,496.53 but was then changed to a lower amount. We are stating you have not made any escrow payments last year. You reviewed the loan and we have not applied payments toward the escrow account though you are paid ahead. This escrow shortage has increased the contractual payment and you have tried to speak with a representative for assistance to no avail. You want this issue corrected.
  
  
  
  Our records indicate NewRez maintains an escrow account on your behalf for taxes and insurance. The loan executed on January 28, 2021 and the enclosed initial escrow account disclosure, show the property taxes were $3,342.96 and the homeowner’s insurance was $1,595.04. Any potential adjustments due to increases or decreases with your taxes and insurance may affect your monthly escrow payment amount. If your escrow payment increases, your monthly payment will also increase. If the escrow payment decreases, your mortgage payment will decrease. Please keep in the mind, the escrow balance never stays the same due to the payments made into the escrow account and the disbursements coming out.
  
  The loan was service transferred to Shellpoint on or about March 1, 2022, with a positive escrow balance of $2,732.03, as indicated in the enclosed Loan History Statement. Annual escrow statements are completed to adjust for any increases or decreases in your property taxes or insurance premiums, which may result in your escrow payment increasing or decreasing the contractual payment. Any overages calculated in the escrow account exceeding $50.00 are refunded to you. On the other hande, a shortage occurs when the anticipated balance is less than the required balance. NewRez is not able to overfund the escrow account; we are allowed to collect only sufficient funds to pay the escrow items, and a cushion of one-sixth of the total escrow amount. The escrow account is short in meeting the cushion requirement at the lowest point in the projected analysis.
  
  The escrow balance was positive from the acquisition of the loan to February 3, 2023, when we received a homeowner insurance renewal policy for $4,753.00. This payment was disbursed to ******** ********* ******** Due to the significant disbursement of insurance compared to prior years, this caused the negative escrow balance and the escrow payment amount needed to be adjustmed, as explained in the escrow analysis sent on January 15, 2024. For further information, please contact your insurance company.
  
  Based on the documentation provided in your complaint, the history shows escrow payments are being made towards the escrow account with each payment. This is shown in the enclosedLoan History Statement. The prior payment of $754.07, shows that $289.39 of that was being applied towards the escrow account. Effective April 1, 2024, the current payment of $1,547.80, shows that $1,083.12 of that is posted towards the escrow account. Each payment towards the escrow account reduces the negative balance until a disbursement is made for the homeowner insurance policy and/or property taxes.
  
  To reduce the contractual payment closer to your prior payment, there are three options-
  
  You can request Shellpoint to spread the escrow shortage over a longer period of time to reduce the contractual payment.
  You can pay extra towards the escrow shortage additional each month, or one payment of $6, 570.58 for the total escrow shortage. Then request an escrow analysis to adjust the escrow and contractual payment.
  
  You can pay online on the website, calling our Customer Service department or mailing a check with the payment coupon instructions.
  
  Please note, you can change insurance companies at any time.If you decide to change companies mid-term, please provide a copy of the new insurance company and Shellpoint can disburse the premium and update your escrow account. If you receive a refund from the prior insurance company, please send the refund to the escrow account by making an escrow only payment, to reduce the escrow shortage and we can complete an analysis using the new insurance premium.
  
  Please be advised that the homeowners insurance with ******** ********* ******* will expire on February 9, 2024 and we have not received a copy of the renewal policy. We are attempting to obtain the renewal policy but have not received it. This information must be provided in writing and can be faxed to our Insurance Department at ************ or emailed to *************************. You may also submit your insurance policy online at ********************************************, or mail it to the following address:
  
  Shellpoint Mortgage Servicing
  ISAOA / ATIMA
  **** *** **** ***** ** **********
  You have the right to request documentation supporting our determination that no error has occurred in the servicing of the loan.
  
  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 contact me at ***** ******** Monday through Friday from 7:00 a.m. to 4:00 p.m. (PST). You may also contact our Customer Service department at (**** ********.
  
  Sincerely,
  
  Grysell F*****
  Compliance Department
  Shellpoint Mortgage Servicing
  
  Enclosures: Escrow Analyses, Escrow Disclosure, Loan History Statement
  
  cc: Consumer Financial Protection Bureau
        Via CFPB portal
        Better Business Bureau
        Via BBB portal 

  Customer response

  02/02/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint. 
  Regards,
  
  ***** *****

• Initial Complaint

  01/18/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  09/26/23 sent $1500 electronically to shellpointe. In November 2023 I entered into a claim with them on back payments in bringing my account current. I had 634.04 in unapplied monies from the 1500 sent prior. In entering into the claim, I was told by the representative the 634.04 would remain in unapplied until there was enough there for a full payment. The claim brought my account to current and new payment in Jan 24 would be 916. Shellpoint took the 634.04 from unapplied and did god knows what with it and now I have to come up with an extra 634.04 in order to make this months payments. I was called the first week of Jan by a rep asking about payment and I asked him about the unapplied and he said he was not seeing anything and opened a ticket. I never heard from anyone, until I called them today. I spoke with Mr. *******, who transferred me to Mr. ********, who transferred me to Ms. ********* was never ever informed that the 634.04 would be applied to anything regarding my loan but, rather told it would remain in unapplied until the remainder was sent over and then it would be applied to the months payment.

  

  Business response

  01/27/2024

  In review of your complaint, Shellpoint can confirm we previously addressed your concerns regarding how the amount of $634.04 previously in unapplied were utilized as part of the partial claim process during a telephone conversation with one of our Loss Mitigation Supervisors on January 17, 2024. To clarify your concerns, the below information is provided.
  
  Records show, on November 18, 2023, you spoke to your Single Point of Contact (“SPOC”), Fatima J****, who explained that from you September 28, 2023 of $1,500.00, $882.98 was applied toward the June 1, 2023 monthly installment and the remainder of $617.02 was placed in unapplied. This increased the unapplied balance to $634.04. During the telephone conversation, the SPOC agreed the funds would remain in unapplied, and explained how the SAPC would be applied to the loan; however, this information was incorrect.
  
  Please be advised, when the SAPC was calculated, the amount approved by the ******* * ***** *********** ******* of $4,959.81, took into consideration the unapplied balance of $634.04 to bring the loan current. Please know, the amount needed to bring the loan to a current status, and ensure the escrow account was not short, was $5,593.85. When your request was submitted for the ****, the system took into consideration the unapplied balance; hence, the application submitted for the partial claim deducted $634.04 from the past due amount, which is why the partial claim was approved for $4,959.81. Below is a breakdown of how the amount of $5,593.85 was calculated.
  
  Six principal and interest payments of $553.67 each, totaling $3,322.02
  Escrow payments totaling $2,271.83
  
  Please keep in mind, at the time the partial claim was completed, the loan was past due for the July 1, 2023 through November 1, 2023 monthly installments of $882.98 each, and the escrow account was negative $895.63. The partial claim was intended to advance the loan’s due date through January 1, 2024, without an escrow deficiency. Because the loan reflected an unapplied funds balance of $634.04, the amount needed from HUD was only $4,959.81, which is the amount received from HUD.
  
  In conclusion, we are unable to comply with your request to apply the amount of $634.04 to a monthly installment, as the funds were utilized as part of the approval process for the partial claim.
  
  If you are experiencing financial difficulties, as expressed in your most recent conversation on January 17, 2024, with our Loss Mitigation Department, please contact our offices for additional assistance at ***** ********* 

• Initial Complaint

  01/05/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  My mortgage was recently transferred to Shellpoint mortgage. My first payment was due on the 1st, but I’m having trouble setting up my account on their website. I tried calling the number listed on the website multiple times over the last week, but all I get is several beeps then the call is dropped. There is no email provided anywhere, so I have no way of getting in touch with a customer service rep. I need a way to talk to someone who works for the company before I pay because I have no idea if this is a scam. Please provide a method of contacting Shellpoint so I can set up my account.

  

  Business response

  01/12/2024

  Your complaint states the loan was recently service transferred to Shellpoint and you have encountered issues with Shellpoint’s website. You have attempted to contact Shellpoint on several occasions, but you have had issues reaching a representative. You are requesting a Shellpoint representative assist you setting up your online account so you can make your payment.
  
  Records indicate the loan was service transferred to Shellpoint on or about December 4, 2023 and was next due for the January 1, 2024 installment.
  
  On January 5, 2024, you spoke with a customer service representative who assisted you with enrolling the loan through our online portal. You confirmed you enrolled the loan through our website and would be submitting a payment online. The representative provided the phone number to our Commercial Loan Department of ***** ******** for future assistance with your loan. On this same day, an online payment of $5,258.68 was received and applied as the January 1, 2024 installment.
  
  On January 10, 2024, we were notified a payment of $5,258.68 was returned non-sufficient funds (“NSF”) by your financial institution with the reason no account/unable to locate account, and the loan became past due for the January 1, 2024 installment.
  
  Shellpoint offers a free recurring Automated Clearing House (“ACH”) payment option. Your monthly payments can be automatically drafted from your checking or savings account either monthly, bi-weekly, or semi-monthly. Proof of payment will appear on your bank statement. Automatic drafting will remain in effect until you notify us in writing that you wish to cancel this service. An ACH Draft Authorization has been mailed separately. To take advantage of this service, please complete the ACH Draft Authorization form, attach your voided check, and return it to our office.
  
  Otherwise, you may enroll in the monthly recurring ACH payment plan through your online account on our web portal at **********************
  
  One-time payments made on our web portal at *********************, via our pay-by-phone option through our Interactive Voice Recognition (“IVR”) system, or by speaking with a live representative from our Customer Service Department at ************  are free of charge.
  
  Additionally, many online banking services allow you to transfer funds electronically. If Shellpoint is unavailable for electronic transfer through your bank, you may still electronically schedule a payment using your bank’s online BillPay service and they will mail a check on your behalf. Payments by mail or through your bank should be addressed to:
  
  Shellpoint Mortgage Servicing
  **** *** ****** ******* ** **********
  
  As of the date of this correspondence, the loan is past due for the January 1, 2024 installment for $5,258.68.
  
  Although Shellpoint 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

  01/05/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  My mortgage was purchased by Newrez recently, they requested my homeowners insurance policy information and I provided them the information on august 10th 2023, found out they had me coded as a condo, which I am not, we live in a townhouse, and have had the same type of insurance policy since the beginning of our loan, throughout November we requested them to code as a townhouse but to no avail, they insisted that we were a priority but nothing was done to change our status , called December 7th they said nothing had been done yet, but we were still a priority, since then they have started billing us for another insurance policy for a condo in the amount of 287.28 in escrow , they have refused to look at this for some reason, the insurance charges are in my escrow, which was zero before they purchased the different policy, I would like to see if they can code me as a homeowner policy like it is supposed to be and reverse the 287.28 and additional payments they possibly can in the future. We have called so many times and no luck, this has caused us so much stress we are at our wits end

  

  Business response

  01/12/2024

  Your complaint states the loan was recently service transferred to Newrez. Shortly after, Newrez requested evidence of insurance which you provided on August 10, 2023. Newrez has the property listed as a condominium, when the property is actually a townhouse. You have requested for the property to be updated to reflect it is a townhouse, but the change has not been made. Since then, a lender placed insurance (“LPI”) policy has been purchased and added to your installments. You are requesting the property be listed as a townhouse, the LPI to be cancelled and refunded and your installment amount be adjusted.
  
  
  Pursuant to the terms of insurance requirements on the loan contract, for as long as the property is financed, it must be adequately insured.  If Newrez lacks the required evidence of insurance, it is required to send a notice out no less than 45 days prior to purchasing insurance for a property. If needed, a second warning notice is sent out 30 days later, advising the homeowner once again of the intent to purchase insurance if proof of coverage is not received. This letter provides the insurance coverage information as well as the cost and provides the customer with an additional 15 days to provide the needed proof of insurance before the purchase is made.
  
  In addition to providing proof of your Homeowners Association insurance coverage, if your loan was closed after January 1, 2012, you are required to obtain Unit Owners (“HO6”) coverage for your property. This may also be required if your Homeowners Association policy does not include coverage for Betterments and Improvements. This ensures any modifications or improvements done to your property are covered under the insurance policy.
  
  Per the enclosed Recorded Mortgage (Condominium Rider) and appraisal report, the property is identified as a condominium. The property will remain listed as a condominium unless proved otherwise
  
  When a mortgage loan is secured by property in which the property type is a condominium, both a Master Condo Hazard/Homeowners Association (“MCH/HOA”) policy and an HO6 policy, are required. The MCH/HOA policy provides all of the “walls-out” coverage, such as grounds maintenance, shared areas, pools, etc., while the HO6 policy provides “walls-in” coverage, which is a policy for the individual property. Some MCH policies include both the “walls-in” and the “walls-out” where an H06 policy is not required. Typically, Shellpoint will request evidence of HO6 insurance coverage for loans in which the property is a condominium or townhome and the loan was originated after January 1, 2012.
  
  Notices requesting evidence of your MCH/HOA policy were mailed on October 11, 2023, and November 10, 2023. By November 27, 2023, we had yet to receive evidence of your MCH/HOA policy and an HOA LPI policy was purchased effective October 4, 2023 through October 4, 2024, for $1,723.68.
  
  Due to the HOA LPI, an escrow account was established for the HOA LPI. Per the escrow analysis completed on December 27, 2023, there was an escrow shortage of $861.84, spread to be collected in 60 months and your installments increased from $472.91 to $630.91, effective with the February 1, 2024 installment.
  
  On January 1, 2024, it was confirmed your HOA carried an HOA and a request was submitted for proof of the HOA policy.
  
  To cancel the HOA LPI, please provide evidence of your MCH/HOA policy effective October 4, 2023 through October 4, 2024. This information must be provided in writing and can be faxed to our Insurance Department at ************ or emailed to *************************. You may also submit your insurance policy online at ********************************************, or mail it to the following address:
  
  Newrez
  I**** * ***** **** *** **** ***** ** **********
  
  As of the date of this correspondence, the loan is next due for the February 1, 2024 installment for $630.91.
  
  Although Shellpoint 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

  01/05/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  In the month of September, we mailed our claim check we received from our insurance for damages we sustained to our home, to our loan company, Newrez LLC to have a representative sign. The contractor had finished the repairs and requested to be paid. We were initially instructed this would take 8-10 business days for review and to be sent back. After 10 days, I called and was made aware of some supporting documents they require in order to prove the contractor did the work. (A contractor's agreement and waiver of lien). We provided these and were assured it would only be another 8-10 business days. I called 2-3 times over the next two weeks to follow up with absolutely no updates. After 3 weeks of me calling, I was informed an inspection needed to be performed on the home to ensure the work was actually completed. (The inspection was completed the same week but the report not submitted until the 21st of November.) We were then informed the documents that were requested originally had some mistakes and needed amended. I was informed this about a week later on the 3rd of December. Those documents were corrected and resubmitted. I spent the next few weeks calling to follow up (I called at least twice a week and would be on hold for hours on end trying to get a solution) about the status of the check but was left with no answers. Finally, on the 21st of December, I was informed that the Contractors agreement that was submitted did not have a letter head on the top so it would need to be resubmitted. This was an issue they made a note of on my account back on the 4th of December but I was not told of this issue until the 21st. I reached out to my Contractor and got the documents fixed again and resubmitted within an hour. The 'Supervisor' instructed me on the 21st they purchased an overnight shipping label and the check would be shipped out within 24-48 hours. It is now the 27th and I am being told another 8-10 business days from today.

  

  Business response

  01/11/2024

  
  Dear **** ******** **** and ******** ****** ****:
  
  This letter is in response to the Better Business Bureau complaint received on January 5, 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 the 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 mailed an insurance claim check in September 2023 to Newrez for endorsement. The contractor finished the repairs and requested payment for their services. You were advised eight to ten business days for review and return of funds, however, after ten days you were informed that contractor’s agreement and waiver of lien were needed. After submitting the documents, you were informed an inspection was required. The inspection was completed the same day but not submitted to Newrez until November 21, 2023. Subsequently, documents needed corrections and resubmission causing additional delays. You spoke with a supervisor who advised they were overnighting the payment on December 21, 2023, but you have yet to receive the check. You want the funds disbursed to pay the contractor.
  
  We appreciate the opportunity to address your concerns. Our records indicate Newrez received a property claim package with a check for $23,761.88 on August 21, 2023. In response, we sent the enclosed property claim procedure packet to the email on file. The packet provides instructions and procedures regarding an insurance claim.
  
  On August 24, 2023, you contacted the insurance department for the status of the claim and the representative advised it was received and it will be a six-eight business day processing time for the check to be endorsed and mailed. The check was endorsed and mailed on September 8, 2023, via United States Postal Service tracking number **** **** **** **** **** **. This claim was closed.
  
  On November 9, 2023, you called to inquire about the claim status and were advised we needed a signed contractor’s proposal, waiver of lien, and inspection report showing the status of completion of the repairs before we could disburse the remaining funds. The property claim procedure packet, as stated above, provides the instructions and procedures of an insurance claim contingent on the amount of the claim. If additional funds are received that make total claim more than $40,000.00, the claim requires additional monitoring and documentation of the claim to verify the repairs are completed per the investor’s requirements. You were advised that the timeframe to receive the check is dependent on our receipt of the requested information for review.
  
  Per the enclosed Loan History Statement (LHS), the insurance check of $25,756.64 was received on November 10, 2023, and held in a restricted escrow account. On November 21, 2023, the inspection was received, showing the repairs completed at 100%, but we advised you that day that a signed on the same day the signed contractor’s proposal and waiver of lien were still outstanding. The waiver of lien was received on December 4, 2023, and the signed contractor’s proposal was received on December 21, 2023. The funds were submitted for release, and you were informed that the check would arrive in eight to ten business days. The final funds were released on December 28, 2023, and the check for $25,756.64 was mailed January 3, 2024, via UPS tracking number ******************.
  
  While there may be delays due to the holidays, our records show Newrez processed the insurance claims funds in a timely manner in compliance with the requirements of the loan contract and the investor’s requirements, which were provided to you in the property claim procedure packet.
  
  You have the right to request documentation supporting our determination that no error has occurred in the servicing of the loan.
  
  Should you have further questions, you may reach us through our Contact Us page by accessing our website, ************** and logging into your account. Go to the Help icon at the top right and click on Contact Us from the drop down. You can submit your email from there and upload any supporting documents. Alternatively, you may contact me at ***** ******** Monday through Friday from 7:00 a.m. to 4:00 p.m. (PST). You may also contact our Customer Service department at ***** *********
  
  Sincerely,
  
  Grysell F*****
  Compliance Department
  Newrez LLC
  
  Enclosures: Loan History Statement, Property Claim Procedure Packet
  
  cc: Better Business Bureau
        Via BBB portal 

  Customer response

  01/18/2024

   I've tried reaching out to the company as well but no reply. Below is my response to what the company "reported" happened. Their info is incorrect. 

  
  

  Yes, we submitted the waiver of lein AS WELL AS the contractors agreement on December 4th. It was noted on our file that on December 6th by the proctor that the Contractors agreement we submitted needed the business letter head on it. BUT, we were not notified of this issue UNTIL the 21st of December. I corrected the error with the contractors agreement the same day and submitted it. I was on hold off and on for the next 3 business days for roughly 3 hours each time trying to convince someone to even mail the check. So no, this was not a misunderstanding. It was a failure and lack of communication by the Loss Draft Department. We have received the check finally. But, that department should not be able to do this to people. It is unprofessional and just wrong.

  
  

  
  

  Thank you for your time.

• Initial Complaint

  01/05/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  We have an insurance claim, all of our checks are going to Newrez mortgage company. They are holding our money, not allowing us to pay our contractors with our insurance money our insurance company has released. They have lied to us saying the check was in the mail. They have put us on hold for hours to wait us out. We have been hung up on without talking to anyone after being on hold for over an hour. They say they will call us, they never have. They are either completely incompetent- or actual crooks. I don’t know which one. From the talk of peoples extreme dissatisfaction with Newrez, I feel a class action be a- brewing. Good luck if you are an unfortunate soul and got their mortgage sold to them like we did. They need a kick in the pants to remind them of what doing the right and ethical thing is for a customer.

  

  Business response

  01/15/2024

  In review of the complaint, the loan was transferred to our offices on September 1, 2023 by ********, which is a sub-servicer for Newrez, yet we are not the same company. Additionally, we are unable to validate your claims of having difficulties while attempting to speak to our representatives regarding the insurance claims, as we have no records of receiving any calls from you.
  
  Please be aware, Newrez has not received any loss draft checks for this loan since the loan was transferred to our offices. We do not show that any loss draft funds were transferred to us from the prior servicer. Therefore, we encourage you to contact your hazard insurance carrier and inquire if the loss draft checks were sent to the loan’s prior servicer.
  
  Although Newrez is the servicer of your account, we must comply with the rules set by the investor on your loan with respect to any loss draft funds that we do receive, to ensure that the funds are used properly to protect the security for the 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 of $40,000.00 or less, if the loan was current at the time of the loss, we will require the claim check and the adjustor’s report from the insurance company. Upon receipt of these documents, the claim check will be endorsed and mailed back to the you. However, please note, the claim is evaluated based off the Adjustor’s Report (“AR”) that is requested. If the check received is under $40,000.00, but the AR indicates the loss amount is greater than that, or the check is received and the loan is found to be delinquent on the date of the loss indicated on the AR, then the check will be deposited rather than being released.  To avoid having to send it back to the borrower to endorse and be mailed again to us, we ask borrowers to sign first.
  
  For claims over $40,000.00, to protect the investor’s interest in the property, certain documentation and inspections 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. If you need assistance or have any questions regarding continuing the repairs on your property, please contact our Loss Draft Services Department at *************
  
  It is extremely important that Newrez receive all requested documentation in a timely manner for us to process your claim and issue additional funds need to continue with repairs. We will do its part to ensure the claim process moves as quickly and smoothly as possible, but we will not be able to release any funds until the required documents are received and complete.
  
  Please note, we will only pay for repairs that have been completed. In addition, all checks will be made payable to you and the contractor. Additional funds will be released based on the percentage of work completed. The work completion may be verified with an inspection of the property and the following items may be required each time a draw is requested:
  
  inspection verifying percentage of work complete
  waiver of lien or sworn statement from the contractor.
  
  Please note that the claim funds cannot be used to bring the loan current. However, in the case of a total loss, Newrez reserves the right to use the claim funds to pay off the loan.
  
  We will monitor the repairs process via property inspections to verify the repairs are being completed according to the contract and in compliance with the local building codes. Inspections to monitor the repair process are to be completed when at least 50% of the repairs are completed and when the repairs are completed. To arrange for an inspection, please contact our Insurance Department at ***** ********* Monday - Friday, 8:30 am to 6:00 pm ET.
  
  Upon completion of the repairs, we will also require your contractor complete the waiver of liens form. This form is required to ensure that your property remains free of any liens. Please note, without this form, Newrez cannot release the final draw.
  
  For additional assistance regarding the loss draft process, please contact our Loss Draft Department at ************, fax number *************, by email at ********************* or by mail at
  
  
  Newrez, LLC
  Loss Draft Department
  ** *** **** ***** ** **********
  
  You may also send correspondence via overnight mail to the department at
  
  Newrez, LLC
  Loss Draft Department
  *** ***** ****** ***** *** ***** ** **********
  
  

• Initial Complaint

  01/05/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Newrez has held onto my insurance money from loss claims due to a house fire resulting in my contractors putting a lien on my house! For months they said they didn’t have my money. Then they said I had to provide this information. When I provided them with it they would tell me I needed something else. It has been 5 months of them dodging me. They never call me back. These people are holding 5 times the amount of money that I currently owe them.

  

  Business response

  01/17/2024

  For insurance claims over $40,000.00, to protect the investor’s interest in the property, certain documentation and inspections are needed for insurance claim funds to be released. This is done to ensure the repairs are completed and the home is returned to its pre-loss condition. 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.
  
  It is extremely important that Newrez receive all requested documentation in a timely manner to process your claim and issue additional funds to continue with repairs, if needed. We will do our part to ensure the claim process moves as quickly and smoothly as possible, but we are not able to release any funds until the required documents are received and complete.
  
  Please refer to Section 5, Property Insurance, of the enclosed Mortgage, signed by you at closing, which explains that the lender, in this case the servicer of the loan, reserves the right to hold the insurance proceeds until confirming the repairs are completed appropriately. Further the servicer reserves the right to hold the funds until the servicer ensures all repairs are satisfactory. Please understand, certain documentation such as the waiver of liens are required to be submitted to ensure the lender/servicer’s security is not lessened.
  
  Although Newrez apologizes the loss draft process may not be to your satisfaction, we are required to ensure all terms are applied when dealing with loss draft claim, to ensure the investor’s interest is not lessened as stipulated in the loan’s security instrument.
  
   According to loan records, Newrez obtained loss draft funds totaling $98,218.46 on October 13, 2023, which were transferred to our offices from the prior loan servicer, Mr. ******.
  
  Upon the review of the file, it has been determined that Newrez has been waiting for the required documents – a valid, signed, and accepted contractor’s proposal and a waiver of lien – before funds could be released. The contractor’s proposal previously received was not valid because it was not signed.
  
  An inspection of the property was ordered on November 1, 2023. However, although the property inspection was ordered and the results were received, the missing documentation referenced above continued to delay our release of the funds. This was explained to you during your call with one of the Loss Draft Department’s leadership members on December 27, 2023. During the same telephone conversation, a request was submitted to inquire if an exception could be granted to release the funds without the waiver of lien, as you stated that you sent the contractor’s proposal via email.
  
  Records show, on January 5, 2024, the Loss Draft management team approved an exception to release the loss draft funds totaling $98,218.46 based on the inspection results showing all the repairs were at 100% completed. The loss draft check was sent on January 9, 2024. Enclosed for your review is a copy of the loan’s payment history reflecting the loss draft funds being released.
  
  Please understand, per the enclosed security instrument, Section 5, Property Insurance, the lender has the right to hold such insurance proceeds until the lender/ servicer can inspect the property to ensure the work/repairs have been completed accordingly. It also states the lender/servicer may disburse the proceeds in a single payment or in a series of progressive payment, as the work is completed. Enclosed for your review is a copy of the security instrument.
  
  Regarding your request for Newrez to pay interest toward the loss draft funds, please know, we respectfully decline your request as all proper steps were taken, and the request to release the funds without all the required documentation was granted as an exception to the business rule. 

  

  Business response

  01/27/2024

  Newrez would like to clarify that the loss draft funds totaling $98,218.46, were not in a different department after the loan was transferred on August 1, 2023. Per the review conducted, our Loss Draft Department confirmed, the insurance claim funds were transferred by Mr. ******; however, the department was unable to locate the funds as they were in a different system. Because the funds were not deposited in the correct system, our Loss Draft Department was unable to locate them on September 7, 2023.
  
  The Loss Draft Department was able to locate the funds on October 13, 2023, and a request to have the funds placed in the restricted escrow account associated with the loan. After locating the funds, our Loss Draft Department reviewed the documentation you submitted and it was determined that we continued to need the contractor’s proposal, as the one submitted was unsigned and not acceptable. This information was also explained in our response dated January 17, 2024.
  
  Regarding the property inspection timeline, Newrez would like to apologize for providing the incorrect timeline for the inspection of the property, as the results were received on November 1, 2023. Although the inspection was received on November 1, 2023, Newrez continued to need the signed and accepted contractor’s proposal and the waiver of lien, which you had not provided by November 15, 2023.
  
  Our leadership team requested an exception to have the loss draft funds released to you without providing the documentation requested. This was requested as you expressed that the contractor would not provide a waiver of lien and threaten to place a lien against the property as the repairs were completed and payment was still needed. As a result, on January 5, 2024, the Loss Draft Department management team approved the exception, solely based on the inspection results showing the repairs were at 100% completed. The loss draft check was sent on January 9, 2024. According to tracking number 1Z1EE7191394000139, the loss draft check was delivered on January 12, 2024.
  
  Please understand, per the enclosed security instrument, Section 5, Property Insurance, the lender has the right to hold such insurance proceeds until the lender/ servicer can inspect the property to ensure the work/repairs have been completed accordingly. It also states the lender/servicer may disburse the proceeds in a single payment or in a series of progressive payment, as the work is completed. Enclosed for your review is a copy of the security instrument.
  
  Regarding your request for Newrez to pay interest toward the loss draft funds, please know, we respectfully decline your request as all proper steps were taken, and the request to release the funds without all the required documentation was granted as an exception to the business rule.
  
  As of the date of this letter, the loan is next due for the February 1, 2024 monthly installment of $1,479.35, and property inspection fees totaling $60.00.
  
  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

  01/29/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID 21083952, and have determined that this does not resolve my complaint. 
   
  Regards,
  
  ****** ***************

   

  Even though Newrez states they did not make any mistakes, they admitted in their letter that they did indeed make 2 errors.  The first one " the funds were not deposited in the correct system, our Loss Draft Department was unable to locate them on September 7, 2023.  The Loss Draft Department was able to locate the funds on October 13, 2023..."  My previous mortgage company sent the funds, Newrez kept saying they didn't, when in fact Newrez MISPLACED the funds and there fore couldn't find them.  Nor did they let me know until I called them AGAIN.  Mistake #1 consisted of 2 months where I could have been sent my money because my house had been completed in the summer.  

  Mistake #2 concerns the inspection.  They admit they made an error.  I could have received the money months sooner considering they sent the money to me based upon the 100% completion of the rebuild.  

  Their combined mistakes 100% caused my contractors to put a LIEN on my house.  They admit they did the 2 above mistakes.  This in itself proves I could have had my money MONTHS sooner where I could have been making interest, or paying my contractors.  Either way, I now have lawyer fees and county fees to rectify the lien being placed on my home.  This is the fault of Newrez.

  Thank you, ****** ***************

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