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:10/03/2022

  Type:Order 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 placed homeowner insurance on my house for which I already had insurance and I explained this to the agent I was speaking with. He mentioned that it would be removed and to continue to pay my mortgage which I did on time for June, July and August. As I'm in the middle of buying a new home and was keeping my credit up to date I was told by my new mortgage company that Newrez put a negative mark against my credit. I got on the phone with Newrez and was told that it would be corrected and to give them a call back as I was not late with the payment. I contacted the company again and found that it wasn't removed and that the weren't going to remove it. I have been told so many different stories by so many different people that now my credit score has dropped I have never been late with a payment with them and not sure why they are doing this. This needs to be corrected immediately.

  

  Business Response

  Date: 10/13/2022

  Pursuant to the
  terms of insurance requirements on the mortgage, for as long as the property is
  financed, it must be insured, and it is the homeowner’s responsibility to
  provide proof of insurance when requested. Since hazard insurance is required
  for your property, your mortgage servicer will maintain insurance on the
  property by purchasing hazard insurance when proof of a preferred insurance
  policy has not been received. A preferred policy is defined as an insurance
  policy purchased by the homeowner, not the mortgage servicer. In addition,
  per the insurance requirements listed in the security instrument, the cost of
  purchasing the LPI coverage shall become an additional debt of the homeowner.
  
  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. 
  
  Our records
  show we received notification on December 6, 2021 that policy number
  ***************** had cancelled effective June 2, 2021. As a result, on
  December 13, 2021, a notice was sent out advising you proof of insurance
  coverage was needed, and our intent to purchase LPI coverage if proof of
  coverage was not provided. When no proof of acceptable insurance was received a
  second notice was sent out on January 12, 2022, and on January 28, 2022, the
  LPI coverage was purchased.
  
  Please see the attached for our full response. 
  

• Initial Complaint

  Date:10/03/2022

  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.

  Horrible, antiquated company that does not make paying off a loan easy. If you are considering using them, don't!
  You cannot make extra payments through your bank. I was repeatedly charged late payments, not because I was late, but because I OVERPAYED!
  Reading other reviews, I'm sure I was supposed to read the lengthy rules they have for servicing our loan. Silly me, I trusted the company. I've had multiple other mortgages and NEVER had trouble overpaying.
  I called and a representative did reverse the most recent "late" fees. She also told me that to overpay we'd have to pay through their website. So I set up a recurring payment for $500 over my mortgage amount. When I next logged in, I found that only $450 additional is going to my principal. Where is the other $50?
  I contacted the company through an online form a week ago. Yesterday I received a letter in the mail saying that they are looking into the problem. Today I tried to log in to see about my last payment (yesterday) and the website was unavailable.
  I have NEVER experienced such a difficult company.
  Be sure to read ALL of the fine print. After reading other reviews, I'm sure they will come up with some lame reason to steal the extra $50 from my payment.

  

  Business Response

  Date: 10/10/2022

  In review of the loan, we have previously responded to your
  concerns via our response dated September 30, 2022, which confirms the
  necessary updates were conducted to ensure the correct amount is applied as
  additional principal. To clarify this matter, the below information is provided.
  
  Shellpoint
  makes every effort to post payments as requested. If instructions are not
  included with overages received, the funds are applied to the account in
  accordance with the payment hierarchy, which posts partial payments on current loans to fees, and then principal payments. Please
  understand, bill-pay payments do not transmit instructions to us.
  
  According to
  our records, the loan is currently enrolled in our Automated Clearing House
  (“ACH”) monthly recurring payment program, with the first payment scheduled to
  be automatically deducted from your bank account on September 1, 2022. You
  enrolled in our ACH payment program via our customer web portal, www.newrez.com, and you requested an
  additional principal payment of $450.00 be deducted along with the monthly
  payment of $953.67, for a total payment of $1,403.67. In accordance with the
  ACH payment program, Newrez began to automatically deduct the above amount on September
  1, 2022 and applied the funds in accordance with your instructions. Enclosed
  for your review is a copy of the ACH confirmation notice sent on July 17, 2022
  showing the total draft amount to be $1,403.67.
  
  Prior to the
  loan entering our ACH payment program, your payments were received via your
  bank’s online bill pay service. As mentioned above, payments remitted via bill
  pay, do not transmit posting instructions that you may attempt to send with the
  payment. The enclosed payment history reflects the first late fee for this loan
  was initially assessed on May 17, 2022, as the May 1, 2022 monthly installment
  was not received in full within the 15-day grace period allotted. On May 25,
  2022, a payment of $500.00 was received and deposited in unapplied funds
  (“UAF”), as the amount received was not sufficient to cover the May 1, 2022 monthly
  installment. On May 27, 2022, a payment of $1,453.67 was received via your bill
  pay, from which $953.67 was posted to the May 1, 2022 monthly installment, $29.18
  posted to late fees, and the remaining $467.15 was posted as additional
  principal. On the same day, $500.00 was removed from UAF and posted to the
  principal balance. On June 27, 2022, a payment of $1,450.00 was received via bill
  pay, of which $953.67 was posted to the June 1, 2022 monthly installment, $29.18
  posted to late fees, and the remaining $467.15 was posted to the principal
  balance.
  
  On July 7,
  2022, you contacted Newrez regarding the receipt of the 17-day delinquency
  notice. At that time, the service representative explained that due to the
  receipt of partial payments, the funds were applied to the principal balance
  rather than to the June 1, 2022 monthly installment. Please be advised, the payment hierarchy requires a full payment to be received
  before a payment can be applied to the due date. Partial payments received will
  be placed in unapplied funds if the loan is delinquent or due for the current
  month. The funds will be held in unapplied funds until additional funds are
  received to satisfy a full payment. Once a full payment has been received, the
  funds will be removed from unapplied funds and applied to the loan.
  
  As a result of
  the telephone conversation on July 7, 2022, a request was entered to have the
  funds initially received on May 25, 2022 of $500.00 and the excess amount
  received with the May 27, 2022 payment of $496.33, be reversed. Once the funds
  were reversed and combined, $953.67 was posted to the June 1, 2022 monthly
  installment, while the excess amount of $13.48 was posted to unapplied funds. As
  a result of the request to have the payments reversed, the payment of $1,450.00
  received on June 27, 2022 was reversed and re-posted to the loan as follows;
  $953.67 posted to the July 1, 2022 installment, and the remaining $496.33 was
  combined with the UAF balance of $13.48 and a principal only payment of $509.81
  was posted.
  
  The last
  payment received for the loan prior to entering in our ACH payment program was
  processed via our customer web portal on July 27, 2022 for $1,353.67, in which
  $953.67 was posted to the August 1, 2022 monthly installment and the remaining
  amount of $400.00 was posted as additional principal.
  
  As of the date
  of this letter, the loan is next due for the November 1, 2022 monthly
  installment of $953.67, which will be automatically drafted from your bank
  account on November 1, 2022.
  
  Although Newrez apologizes
  for any inconvenience this matter has caused, we have been unable to determine
  that an error occurred after investigating your dispute. You have the right to
  request documentation supporting our determination