Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:02/06/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I refinance my mortgage through ******** bank, ******** sent a payment it was returned by shellpiont. I called shellpiont the next day because shellpiont rejected the funds. Shellpoint stated it was because it was short $3600.00. The bank resubmitted with the additional funds. I made a payment the same day to avoid tje mortgage being late and now shellpiont is stating that my payment was factored into the payoff amount that ******** sent. This isn't possible because I made the payment after calling the new lender informing them of payoff amount.

  

  Business Response

  Date: 02/23/2024

  Regarding the appraisal fee assessed while you attempted to refinance with our offices, we reached out to our Originations Department to review the refinance process. The Originations Department confirmed that all appropriate steps were taken during the review and valuation process of the property and your application. The review was unable to locate the mortgage consultant informing you the appraisal fee would be refunded if the refinance application was denied. However, on February 16, 2024, Newrez decided to reimburse you the appraisal fee of $675.00, as a one-time courtesy. Please allow seven to ten business days for the refund to reflect on your card.
  
  Regarding the payoff transaction for this loan, on January 29, 2024, a payment of $318,581.14 was received. However, as the amount received was not sufficient; therefore, the funds were rejected and returned to ****** * **** *** on January 30, 2024, informing them an additional amount of $5,703.71 was required to process the payoff. On January 31, 2024, you spoke to a representative who explained why the payment was returned and you submitted a payment that was applied as the January 1, 2024 monthly installment and requested an updated payoff statement.
  
  Please note, a payoff statement generated on January 31, 2024, showed the next due date as February 1, 2024, meaning this payoff statement factored in your January 31, 2024 payment of $2,245.29 applied as the January 1, 2024 installment into the final payoff total.
  
  Please be aware, this loan has actuarial interest. Actuarial interest is earned and paid in arrears; therefore, the interest owed will be for 30 days regardless of when the monthly payment is received. If you make a payment prior to the due date, you will pay 30 days of interest for the prior month's accrual. Likewise, if you make a payment after the due date, you will also pay 30 days of interest for the prior month's accrual. When paying the account in full, interest will be assessed daily from the last monthly payment received until the day the payoff is received.
  
  Records show, on January 31, 2024, a payment of $322,268.80 was received and applied as a payoff. On February 9, 2024, Shellpoint received notice a payment of $2,245.29 was returned non-sufficient funds (“NSF”) by your financial institution with the reason authorization revoked. As a result, the payment of $2,245.29 was reversed and the payoff funds of $322,268.80 were reversed and placed in unapplied funds, as the amount was no longer sufficient to pay off the loan and it became due again for the January 1, 2024 installment.
  
  The review shows, on February 13, 2024, the amount of $322,268.80 was returned to the title agency. On February 15, 2024, a voicemail was left informing you the funds were returned and the amount of the payoff shortage. As of the date of this correspondence, the loan continues to be active and due. Enclosed for your review is a copy of the most updated payoff statement good through March 20, 2024 with a total payoff of $325,801.21 and a per diem of $27.52.
  

• Initial Complaint

  Date:02/06/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  NewRez LLC d/b/a Shellpoint Mortgage Servicing purchased my mortgage in September 2023. Upon receiving my first statement from them I noticed that my escrow was not included in the payment due. I contacted them immediately and was told it was because they just purchased my mortgage and had not completed setting up my file. When I followed up a few weeks later it had still not been taken care of. I was then told it takes 14-30 business days to complete the file. When I received my next statement I expected the issue to be resolved, it was not. I paid the bill and contacted the company again. I was told again that the issue was escalated and would be resolved in 14-30 business days. It has now been 4 months since they purchased my mortgage and it is still not resolved. When I called again tonight I was told the same thing. I insisted on speaking to someone higher who could resolve the issue today. Upon speaking to a supervisor I found out that my escrow account was never set up and nothing had been resolved.

  

  Business Response

  Date: 02/26/2024

  Upon the receipt of your complaint, we confirmed the loan was originated with an escrow account and the monthly base escrow payment was estimated at $679.02.
  
  The review confirms, you contacted our Customer Service Department multiple times to ensure the escrow monthly payment was included with your principal and interest (“P&I”) monthly installment. Our service representatives explained the delay in showing the escrow payment could be a result of the recent transfer and they requested the escrow payment be reviewed and corrected. Our review found, each time a request was submitted, the necessary updates were not made.
  
  According to the review, when the escrow account was set up, it was for property taxes and did not include hazard or flood insurance. Further, the system was not properly updated to collect an escrow payment, but only reflected for the principal and interest monthly payment of $1,050.73.
  
  Please note, on January 25, 2024, a disbursement of $3,187.34 was sent to ***** **** for the taxes, causing the escrow account to become negative $1,328.78.
  
  On February 12, 2024, an escrow analysis was performed and calculated an escrow shortage of $2,206.00 to be collected over 60 months at $36.77 a month. The monthly escrow payment was calculated at $677.43, once combined with the monthly escrow shortage, the overall monthly escrow payment became $714.20 and the monthly installment amount was adjusted from $1,050.73 to $1,764.93, effective April 1, 2024. Please know, you do have the option to pay the escrow shortage in full, which will decrease your monthly installment from $1,764.93 to $1,728.16. Enclosed for your review is a copy of the escrow analysis.
  
  Additionally, you may submit an additional escrow payment with your monthly payment to help reduce the escrow shortage mentioned above. Escrow payments may be submitted along with your monthly payment by mail, or by contacting our offices or accessing your account via our customer web portal.
  
  As of the date of this letter, the loan is due for the March 1, 2024 monthly installment of $1,050.73.
  
  Please accept our sincere apologies for the inconvenience this matter has caused. Newrez takes our customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization. 

• Initial Complaint

  Date:02/06/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My wife and I got divorced in which I was awarded the house on October 10th 2023. We are both veterans but only her VA entitlement was used to purchase the home. After the divorce, in October 2023 I emailed Newrez I was going to assume the loan. My understanding is they don’t have a phone to be reached at. They provided me a 60-90 day completion timeline. I have return all requested emails and documents within 24-48hrs to keep the process rolling. It is now Feb 4, well over 90 days and communications is almost non existent. There are kids involved in the divorce and if this loan assumption isn’t completed in time, I will be forced to put the house up for sale and go through custody issues with my ex wife. When I ask for updates, I go weeks without them. Emails are signed with initials or random letters to hide actual people’s identity. I have been very patient but due to the lack of communication and results I have become very concerned that this will actually never been completed.

  

  Business Response

  Date: 02/24/2024

  Please be advised, the turnaround time for an assumption to be completed is 60 to 90 days upon the receipt of all the required documentation. Records confirm, the documentation to be able to process the assumptions was received on or about January 2, 2024. Although Newrez strives to complete the review within the above-said timeframe, delays may occur in the event additional documentation is requested.  Please understand, Newrez is unable to provide an approval prior to meeting all the conditions and evaluating the full application.
  
  Per the review completed, our records confirm, on February 15, 2024, an email was sent to you informing you the assumption for the loan was approved and the Assumption Agreement is being drafted.
  
  For additional assistance, you may email the Assumptions Department at *********************** Please note, our Assumptions Department will respond to your inquiries regarding the process. 

• Initial Complaint

  Date:02/05/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I sold my home in September 2023. I contacted Newrez in regards to my 1098 tax form for mortgage interest. My inquiry was to ask if my 1098 was sent out and to what address since I hadn't received the document. I was specifically told that 1. They could not give me any information about my tax form regarding the property since it was no longer mine. 2. I needed consent from the new owners to access the account to get to my tax statement. Why would my tax statement be located with the new owners file? Why is my information as a former customer not be available? I am only asking Newez to provide me with my 1098 for the home I paid taxes, interest and mortgage on in 2023.

  

  Business Response

  Date: 02/23/2024

  Your complaint states you sold the property in September 2023 and recently contacted Shellpoint regarding your 1098 tax form as you had not received it. Representatives were unable to assist you as you no longer owned the property and needed authorization from the new borrower to have the tax form sent out to you. You are requesting Shellpoint to provide you with the 2023 Mortgage Interest Statement 1098 Form.
  
  Please note, when an assumption is completed, the prior borrower's information is removed from the loan and are no longer authorized to receive loan-level information. We sincerely apologize for the inconvenience this may have caused.
  
  Pursuant to your request, please find enclosed a copy of the 2023 Mortgage Interest Statement 1098 Form.
  

• Initial Complaint

  Date:02/02/2024

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date:02/01/2024

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date:01/23/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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

  Date:01/23/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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 Answer

  Date: 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

  Date:01/18/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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

  Date:01/05/2024

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  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

  Date: 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.