ComplaintsforShellpoint Mortgage Servicing

• Initial Complaint

  03/20/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

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

  

  Business response

  03/26/2024

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

• Initial Complaint

  03/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

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

  Customer response

  03/05/2024

  Good morning,

  
  

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

  
  

  Thank you for your assistance,

  
  

  ***** ****

• Initial Complaint

  03/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

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

  

  Business response

  03/14/2024

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

  Customer response

  03/15/2024

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

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

• Initial Complaint

  03/04/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

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

  

  Business response

  03/27/2024

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

  

  Business response

  03/27/2024

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

  Customer response

  03/30/2024

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

  Customer response

  03/30/2024

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

• Initial Complaint

  03/01/2024

  Complaint Type:

  Delivery Issues

  Status:

  Resolved

  More info

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

  

  Business response

  03/15/2024

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

  

  Business response

  03/15/2024

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

  

  Business response

  03/29/2024

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

  

  Business response

  03/29/2024

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

  Customer response

  04/03/2024

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

  Customer response

  04/03/2024

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

• Initial Complaint

  02/28/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  On October 1st, 2023 we had a person hit the side of our home. We have made numerous calls explaining this to them and our insurance adjuster explained the situation. The first demanded a open claim from wind damage, even though we both have told them several times this is to someone's negligence. We have spoken to at least 4 different people, giving 4 different responses. In 3 1/2 weeks ago they received half of the money forward repairs. We have had to make numerous phone calls telling them we will lose our on the contractor. Because they state we were one month behind at the time of accident, they released $27,000 out of that money on the 2/26/24. We were told a manager would call to discuss possibly of more funds being released. That never happened. So now the contractor backed out due to low funds. They have the money and we have no house. The house is condemned. We have 1 more months before we are homeless, paying a mortgage note on a house that we can't utilize. The insurance is sending another $75,000 and we still do not have any repairs started. I plan to utilize all course of action, so my family has a place to live. This was not our fault. Why are we being punished and thrown in the street.

  

  Business response

  03/06/2024

  Your complaint states due to your home sustaining damages, your insurance carrier issued you a claim check. Shellpoint opened a wind damage claim, but the home was hit by a car. About three weeks ago you mailed Shellpoint the claim check and it took several calls to have $27,000.00 released to you. Due to Shellpoint delaying the release of the funds, you lost your contractor. Shellpoint has the remaining funds, and your carrier is in the process of issuing you a second check for $75,000.00. You are requesting Shellpoint issue the claim funds to you in order to complete the repairs.
  
  Although Shellpoint is the servicer of your account, we must comply with the rules set by the investor of your loan. In addition, the repairs you make to your house must comply with applicable government codes and regulations governing residential repair or reconstruction. This includes building codes, zoning codes, work permits, and inspections.
  
  For claims over $40,000.00, to protect the investor’s interest in the property, certain documentation and 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.
  
  Shellpoint 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.
  
  On January 30, 2024, you informed our Loss Draft Department the home sustained damages and had received a claim check for $75,634.06. It was explained the claim would be monitored and you were instructed to send in the endorsed check, adjusters report, and signed contractors’ proposal. We show no records of our Loss Draft Department indicating the claim would be opened under wind damage.
  
  On February 13, 2024, Shellpoint received a claim check of $75,635.06. On this same day, our Loss Draft Department requested a copy of the adjusters’ report from your insurance company and also informed you via email that the signed contractors’ proposal was still missing. This same information was also provided over the phone on February 14, 2024.
  
  On February 21, 2024, it was explained by our Loss Draft Department, the status of the claim was determined by the status of the loan and at the time of the loss, October 1, 2023, the loan was past due for the August 1, 2023, installment. The funds were placed in a restricted escrow account and would be disbursed as repairs are completed. It was also explained that in order to release the remaining funds, a signed waived of lien and an inspection showing repairs were 95% complete was required. Enclosed is a copy of the claim packet which also outlines the claim procedure.
  
  For additional questions or concerns you may have regarding the status of your claim, please contact our Loss Draft Department at ***** *********
  
  As of the date of this correspondence, the loan is past due for the February 1, 2024, and March 1, 2024, installments for $591.78 each installment.
  
  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

  02/27/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I received letters from Newrez that they needed a copy of my hazard insurance in about the fall of 2023. At that time, i reached out to my insurance agent that gave me a copy of my home insurace that i forwarded to Newrez, then i followed up with a phone call to see if they had received the copy of insurance. It was determined that it wasn't the home insurance that they needed from me but Hazard insurance that is purchased by the property management company of our condominium. On November 30th, I followed up with Nija at Newrez and she confirmed that she received confirmation of the Hazard insurance from ***** ****** of ****** ********** ** ******** **. and that i should be getting a confirmation letter in the mail within a couple weeks. In early February, i realized that i had not yet received the letter so called Newrez and spoke to an agent who then told me that there is no documentation of hazard insurance to my loan account number. I explained that i had confirmation from Nija on 11/30. I did not get agents name because call was dropped. I called back on February 6,2024, and spoke to Mindy. She did check the history of my account and confirmed that they did have proof of Hazard insurance coverage. A couple weeks later, i received a letter from newrez dated February 1, 2024 that the lender placed insurance that was purchased by newrez had been cancelled and adequate insurance coverage was provided. However, on my March mortgage statement dated 2/17/24 which is due on 3/01/24, it shows that my mortgage has gone up about $286.97 per month from $987.86 per month to $1274.83. My February escrow was $137.04, while my March escrow taxes and insurance is $$424.01. I would like your assistance in clearing this matter, because this is not the first time that The BBB had to intervene between myself and Newrez for this similar situation. Thank you, ****** ******* ***** ********

  

  Business response

  03/22/2024

  Dear ****** ******** ******* and ****** *** ********
  
  This letter is in response to the Better Business Bureau (“BBB”) complaint received on February 27, 2024 and correspondence received on March 9, 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 August 1, 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 you are dissatisfied with the customer service received regarding the removal of the lender-placed insurance (“LPI”) policy on your loan. You state you are being asked to provide proof of insurance for a period of August 1, 2023 through December 15, 2023 after being advised by two customer service representatives your proof was received. You also requesting an explanation as to why the Compliance Department responding to your complaint when your issue is a Customer Service issue.
  
  Please accept our sincere apology if you have received any misinformation prior to our communication. Shellpoint does not condone unprofessional communication with consumers, as it is our goal to adhere to all state and federal laws and regulations concerning the servicing of loans. We apologize for any inconvenience you may have experienced regarding the servicing of this loan.
  
  Upon additional research, we were able to locate the State Farm policy under policy number ************ effective December 16, 2022 through December 16, 2023. Your proof of insurance has been forwarded to our Insurance Department and the LPI policy was fully cancelled on March 22, 2024
  
  Please allow seven to ten business days for the LPI refund to be deposited to your escrow. Once the LPI refund has been deposited in your escrow, a request will be made to have an updated escrow analysis generated and it will be mailed to you under a separate cover.
  
  Additionally, it's important to clarify our process regarding complaints. All of Shellpoint’s written correspondences and/or complaints are addressed by our Compliance Department as part of our commitment to regulatory standards and transparency. However, if you prefer to discuss your concerns directly with someone, we encourage you to reach out to our dedicated Customer Service Department at ************. We value your feedback and are here to assist you in any way we can.
  
  As of the date of this communication, the loan is due for the April 1, 2024 installment of $1,274.83.
  
  Please accept our sincere apologies for any inconvenience regarding the removal of the LPI from your loan. Please know that Newrez takes its customer service obligations very seriously and your concerns have been brought to the attention of the appropriate people within our organization.
  
  For any additional inquiries or assistance, please visit our website at **************. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************, ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at *************

  Customer response

  03/27/2024

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

• Initial Complaint

  02/27/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Continue to charge for Hazard insurance, regardless of howmany times and ways I have showed proof of hazard insurance. I was charged from July 2023 to present. I spoke with them in December, and i was told My hazard insurance was indeed visiable in the Shellpoint Portal, and I would receive a refund. This has never happened. Today February 26 2024, I received another letter they would again be placing lender Hazard insurance. Myself as well as My HOA , have faxed Mailed, emailed and uploafed my Hazard insurance. Shellpoint continues to ignore this. I do not know how to end this issue

  

  Business response

  03/07/2024

  Dear **** ****** *****:
  
  This letter is in response to the Better Business Bureau (“BBB”) complaint received on February 26, 2024 regarding the subject property. ********* ***., not in its individual capacity, but solely as owner trustee of the New Residential Mortgage Loan Trust 2023-1 is currently the owner of the account number ending in 0475. Shellpoint Mortgage Servicing (“Shellpoint”) began servicing the loan on behalf of the owner referenced above on or about April 10, 2023. 
  
  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 continues to charge you for hazard insurance after you provided proof of hazard insurance. You have been charged from July 2023 to present. You spoke with Shellpoint in December 2023 and you were informed you would receive a refund, but it was never received. On February 26, 2024, you received a letter informing you a lender-placed insurance (“LPI”) policy would be placed on your property. You are requesting the LPI be cancelled and refunded.
  
  Pursuant to the insurance requirements in the enclosed Mortgage, Section 5, Property Insurance, for as long as the property is financed, it must be insured. If the homeowner fails to maintain any of the required coverages as outlined in the insurance requirements, the Lender may obtain insurance coverage and any amounts disbursed by the Lender for this purchase shall become additional debt of the homeowner. In addition, all insurance policies required by Lender and renewals of such policies shall be subject to the Lender’s right to disapprove such policies, shall include a standard mortgage clause, and shall name the Lender as mortgagee and/or as an additional loss payee. Enclosed is a copy of the Mortgage for your review. 
  
  Since your property is a condominium, you were required to provide both proof of your Homeowner’s Association (“HOA”) master hazard insurance coverage and unit owner’s (“HO6”) coverage for your property at the loan closing. Since insurance is required for your property, we will maintain insurance on the property by purchasing an LPI policy when proof of your insurance policies has not been received.
  
  When active or sufficient proof of insurance is not available, Newrez is required to send notices requesting proof of insurance out no less than 45 days prior to purchasing insurance for a property. If needed a second notice is sent out 30 days later, advising once again of the intent to purchase insurance if proof of coverage is not received. This letter provides the homeowner with an additional 15 days to provide the needed proof of insurance before a Lender Placed Insurance (“LPI”) policy is purchased on your behalf.
  
  On June 9, 2023, Shellpoint sent a letter informing you that the flood insurance policy on file did not contain an adequate amount of coverage. The letter stated if you do not respond within 45 days, by either providing evidence you increased your flood insurance policy coverage or requesting we provide you with such coverage, the necessary additional flood insurance coverage will be obtained for you.
  
  On July 10, 2023, Shellpoint sent a second letter informing you the flood insurance policy did not contain an adequate amount of coverage. The letter stated if you do not respond within 15 days, by either providing evidence you increased your flood insurance policy coverage or requesting we provide you with such coverage, the necessary additional flood insurance coverage will be obtained for you.
  
  As proof of your flood insurance policy was not received for the period of June 9, 2023 through June 9, 2024, a binder notification was sent on July 26, 2023 explaining this information and a LPI policy was purchased for the property. The annual premium for this policy is $6,821.52 and provides coverage from June 9, 2023 through June 9, 2024.
  
  Additionally, on June 16, 2023, Shellpoint sent a first insurance notification informing you the HOA policy on file had expired, and Shellpoint needed proof of coverage. The notice explained how to send your policy to Shellpoint and that if your proof of insurance was not received in a timely manner, an LPI policy would be purchased for the loan.
  
  On July 17, 2023, Shellpoint sent a second notification informing you we were unable to verify insurance coverage from July 1, 2023 through December 1, 2023 and needed proof of coverage. As of August 2, 2023, proof of your HOA policy was not received for the period of April 10, 2023 through April 10, 2024; therefore, a notification was sent explaining this information and an LPI policy was purchased for the property. The annual premium for this policy is $2,106.96 and provides coverage from April 10, 2023 through April 10, 2024.
  
  However, as proof of insurance was received for your HOA policy and the LPI policy was cancelled on August 17, 2023 with an effective date of April 10, 2023. Please note, no disbursements were made from your escrow for the policy purchased, therefore, no refund is necessary.
  
  On September 27, 2023, Shellpoint sent a first insurance notification informing you the HO6 policy on file had expired, and Shellpoint needed proof of coverage. The notice explained how to send your policy to Shellpoint and that if your proof of insurance was not received in a timely manner, a lender-placed insurance would be purchased for the account.
  
  On October 27, 2023, Shellpoint sent a second notification informing you we were unable to verify insurance coverage from July 1, 2023 through December 1, 2023 and needed proof of coverage. As of November 13, 2023, proof of your HO6 policy was not received for the period of September 20, 2023 through September 20, 2024; therefore, a notification was sent explaining this information and a LPI policy was purchased for the property. The annual premium for this policy is $3,711.36 and provides coverage from September 20, 2023 through September 20, 2024.
  
  Proof of insurance was received for your flood insurance policy and the LPI policy was cancelled on January 16, 2024 with an effective date of July 18, 2023. On January 23, 2024 a refund in the amount of $252.50 was refunded to your escrow and on January 25, 2024, a refund in the amount of $1,180.17 was refunded to your escrow. Please note, to fully refund the LPI funds paid for flood insurance, please provide proof of coverage for the period of June 9, 2023 through July 18, 2023. You may submit your insurance policy online at ********************************************, or mail it to the following address:
  
  Shellpoint Mortgage Servicing
  ***** * ***** ** *** **** ***** ** **********
  
  Furthermore, proof of insurance was received for your HO6 insurance policy and the LPI policy was cancelled on February 1, 2024 with an effective date of December 15, 2023. On January 23, 2024, a refund in the amount of $299.51 was refunded to your escrow, on February 2, 2024, a refund in the amount of $208.91 was refunded to your escrow, and on March 6, 2024, a refund in the amount of $728.97 was refunded to your escrow.
  
  On February 13, 2024, Shellpoint sent a first insurance notification informing you the HO6 policy on file had expired, and Shellpoint needed proof of coverage. The notice explained how to send your policy to Shellpoint and that if your proof of insurance was not received in a timely manner, a lender-placed insurance would be purchased for the account.
  
  However, upon additional research, we were able to locate the master policy and the LPI policy was cancelled on February 27, 2024.
  
  Please note, LPI had not been purchased so no disbursements were made from your escrow for the policy, therefore, no refund is necessary.
  
  
  As of the date of this communication, the loan is due for the April 1, 2024 installment of $1,898.80.
  
  Although Shellpoint apologizes for any inconvenience, we have determined that no error has occurred. You have the right to request documentation supporting our determination.
  
  For any additional inquiries or assistance, please visit our website at www.shellpointmtg.com. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************, ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at ************. 

• Initial Complaint

  02/26/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Despite my repeated attempts to address this matter, the situation with Shellpoint mortgage servicing remains unresolved. Following my initial correspondence on 11/27/23 and subsequent phone calls, I have yet to see any meaningful progress in rectifying the issue of missing escrow funds ($3955.35) associated with my loan transfer from ***** (Loan number **********) to Shellpoint (Loan number **********). In January, I received a disheartening letter from Shellpoint, disclaiming any knowledge of the previous escrow balance history and suggesting that the funds might have been diverted to home insurance or property taxes. Subsequent communication with ***** confirmed the disbursement of the missing escrow funds to Shellpoint on 12/6/23, yet there is still no evidence of these funds being credited to my account, despite my persistent inquiries. This flagrant mishandling of my finances is not only deeply concerning but also indicative of a serious breach of trust. I have dedicated countless hours over the past few months attempting to resolve this matter, only to be met with delays and evasive responses. At this juncture, I am left with no alternative but to escalate this issue to BBB Upstate South Carolina in the hopes that my issue will be resolved.

  

  Business response

  03/07/2024

  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.  
  
  The complaint states, despites your repeated attempts to have Shellpoint resolve the issue of the missing escrow funds of $3,955.35, this matter has yet to be resolved. During the month of January 2024, you received a letter from Shellpoint stating that it was possible a payment was disbursed from the escrow account by the prior servicer causing the escrow funds to be less than expected. However, you have confirmed with the prior servicer, *****, Inc, the funds were transferred to Shellpoint on December 6, 2023. To you understanding, this is mishandling of your finances as the issue remains unresolved.
  
  Shellpoint began servicing the loan on or about November 8, 2023 and was transferred with an escrow balance of $1,318.44.
  
  Upon the receipt of your complaint, we reviewed the loan to determine if any escrow payments were sent to our offices by the prior servicer, as the escrow account should have transferred to our offices with a balance of $3,955.32. As a result, it was confirmed the prior servicer attempted to send two escrow payments of $1,318.44 each, to be added to the escrow account prior to the transfer to Shellpoint, but the funds were omitted at the time of transfer.
  
  On March 5, 2024, the two missing escrow payments totaling, $2,636.88 was deposited in to the escrow account. As a result of the receipt of the escrow payments, the escrow balance has increased from $6,592.20 to $9,229.08. Enclosed for your review is a copy of the loan’s payment history confirming the receipt of the missing escrow funds from the prior loan servicer.
  
  As of the date of this letter, the loan is due for the April 1, 2024 monthly installment of $10,122.78.
  
  Please accept our sincere apologies for any inconvenience this matter may have caused. Shellpoint 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

  02/21/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  The loan server requested insurance documents from me. They sent me a letter stating that if I don't sene in my HO6 insurance coverage, the loan server will buy it for me. I immediately called and informed them not to buy anything and submitted my documents SAME day. When I submitted on their portal, they redirected me to another email to send it to. When I sent my insurance documents to their requested email, I received no confirmation of receipt. I have emailed them (to all their emails and in the portal) to confirm receipt of my documents to no avail. They have no ombudsman or complaint number. I feel that I am being trapped into a situation where they will accuse me of not sending them my documents. Even though I did immediately. Simply, I want the business to confirm receiving my documents. They are required to.

  

  Business response

  03/01/2024

  Dear ****** *******i:
  
  This letter is in response to the Better Business Bureau (“BBB”) complaint received on February 22, 2024 and correspondence received in our office on February 8, 2024, regarding the subject property. Newrez LLC d/b/a Shellpoint Mortgage Servicing is currently the owner of the account number ending in 1412. Newrez LLC (“Newrez”) began servicing the loan on behalf of the owner referenced above on or about November 1, 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 you received a letter informing you Newrez did not have proof of your hazard insurance and would purchase a policy for you. You submitted proof of coverage the same day. However, you have not received confirmation that your documents were received. You are requesting confirmation that your insurance documents were received.
  
  Pursuant to the insurance requirements in the enclosed Mortgage, Section 5, Property Insurance, for as long as the property is financed, it must be insured. If the homeowner fails to maintain any of the required coverages as outlined in the insurance requirements, the Lender may obtain insurance coverage and any amounts disbursed by the Lender for this purchase shall become additional debt of the homeowner. In addition, all insurance policies required by Lender and renewals of such policies shall be subject to the Lender’s right to disapprove such policies, shall include a standard mortgage clause, and shall name the Lender as mortgagee and/or as an additional loss payee. Enclosed is a copy of the Mortgage for your review. 
  
  Since your property is a condominium, you were required to provide both proof of your Homeowner’s Association (“HOA”) master hazard insurance coverage and unit owner’s (“HO6”) coverage for your property at the loan closing. Since insurance is required for your property, we will maintain insurance on the property by purchasing a Lender Place Insurance (“LPI”) policy when proof of your insurance policies has not been received.
  
  When active or sufficient proof of insurance is not available, Newrez is required to send notices requesting proof of insurance out no less than 45 days prior to purchasing insurance for a property. If needed a second notice is sent out 30 days later, advising once again of the intent to purchase insurance if proof of coverage is not received. This letter provides the homeowner with an additional 15 days to provide the needed proof of insurance before a Lender Placed Insurance (“LPI”) policy is purchased on your behalf.
  
  On January 9, 2024, Newrez sent a first insurance notification informing you the HOA policy on file had expired, and Newrez requested proof of coverage. The notice options to send your policy to Newrez and that if your proof of insurance was not received, a lender-placed insurance (“LPI”) policy would be purchased for the account.
  
  Newrez received the proof of coverage for the HOA policy number CND ******* with ******** ******* ********* *******. On January 30, 2024, Newrez mailed a notice informing you the LPI was cancelled, effective November 19, 2023, as adequate insurance coverage had been provided. Please note, no disbursements were made from your escrow for the policy purchased, therefore, no refund is available.
  
  As of the date of this communication, the loan is current with the next installment due March 1, 2024.
  
  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.
  
  For any additional inquiries or assistance, please visit our website at **************. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************, ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at ************.

  

  Business response

  03/25/2024

  Dear ****** ********:
  
  This letter is in response to the Better Business Bureau (“BBB”) rebuttal complaint received on March 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 behalf of the owner referenced above on or about November 1, 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 expressed your frustrations at not receiving responses to your correspondences to Newrez. You are inquiring why no one responded to your correspondences.
  
  Newrez makes every effort to respond to correspondence as quickly as possible. However, by law, we are allowed 30 days. For immediate assistance, you are always welcome to contact our Customer Service department at *************
  
  Upon review, our records show, Newrez received your complaint on January 22, 2024 regarding Newrez not having proof of your Homeowner’s Association (“HOA”) master hazard insurance policy. Newrez responded on January 23, 2024 providing you clarification and instructions on what documents were needed and how to provide them to us.
  
  On February 8, 2024, Newrez received a second correspondence regarding not receiving confirmation of your insurance documents not being received. This correspondence was responded to on March 1, 2024 with the BBB complaint received on February 22, 2024.
  
  Furthermore, on February 21, 2024, Newrez received a correspondence regarding your account being charged twice in mid-February. This correspondence was responded to on March 20, 2024 advising you of our findings regarding the drafted payments.
  
  As of the date of this communication, the loan is current with the next installment due April 1, 2024 of $4,000.13. We have enclosed copies of our prior responses for your review.
  
  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.
  
  For any additional inquiries or assistance, please visit our website at **************. Once logged in, navigate to the Help icon at the top right corner and select Contact Us from the drop-down menu. Here, you can submit your questions and concerns, as well as upload any relevant documents. You can also find helpful information on our Frequently Asked Questions (“FAQs”) page. From the Help menu, choose FAQs from the drop-down menu for quick access to answers to common questions. Alternatively, you may also contact me directly at ************************ or by phone at ************* ext. ****, Monday through Friday from 8:00 am to 5:00 pm ET. You may also contact Customer Service at *************

  Customer response

  03/26/2024

  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. 
  

  Similar to your previous email, you are not speaking to how Newrez failed to return communications rather you only point out the few times any communication was responded to (which was only done after vigorous outreach from me). I have submitted significant evidence to you that generally speaking no one returns communications. The 30-day return of communications does not make sense when you sent letters with deadlines under 30 days. Also whenever I message Newrez or send a message through the portal, I receive an automated message stating "Thanks for contacting us! We'll respond as soon as we can". There is no mention of 30 days. Also, you state that I can call the Customer Service number but when I do the representatives state that they can't answer any questions regarding mortgages. A representative informed me that the personnels that deal with mortagages do not speak with clients, it's only one-way communication, they informed me that I can send communications to them but they can't speak to me. The representatives themselves that I speak with have never been able to answer any of my questions and they were clear that they cannot help answer questions regarding the insurance requirement that was requested of me from Newrez. Read that again, even though I received a letter from Newrez requesting a document from me, the only customer service number available on the letter leads to a representative that cannot help. I could go on but you have the evidence and rather than correcting or acknowledging any wrongdoing (which would have resolved this matter immediately) you have chosen to go out of your way to deny any wrongdoing. 

  At this point, you have given me more than enough evidence to submit to FTC, Office of The Comptroller of The Currency, and the federal agencies that oversee loan servers. 

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

*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. ↩