Date Received: 2020-07-10
Issue: Trouble during payment process
Subissue:
Consumer Complaint: XX/XX/XXXX To whom it may concern and advocate for senior citizens who are being taken advantage of : I am a XXXX XXXX XXXX with modest financial ability who has a mortgage servicer in Shellpoint who is violating the Homeowners Protection Act ( HPA ) and XXXX XXXX own guidelines as they relate to the termination of Private Mortgage Insurance ( PMI ). My loan was originated by XXXX XXXX in XXXX of XXXX and subsequently sold to XXXX XXXX with the servicing rights to Shellpoint. The appraised value of my home at origination was {$130000.00}. The current unpaid principal balance of my loan is approximately {$97000.00} for a current loan-to-value ratio ( LTV ) of approximately 74 %. Please note, these numbers are my best guess because I cant locate my original appraisal my LTV could be lower if the appraised value at origination was higher. Also, my loan is a conventional 30-year loan, single family residence, my principal residence, and I have never been 30 days delinquent on my mortgage payment. As an individual who has worked for over 50 years, Im planning to XXXX soon and need every dollar possible. In an effort to maximize my fixed income for XXXX purposes, I requested PMI to be terminate by Shellpoint on XX/XX/XXXX through a call with customer service. I paid an additional {$4700.00} to principal XXXX to ensure I was below the LTV threshold only to be denied by Shellpoint. On XX/XX/XXXX, Shellpoint sent me a denial letter for my request to terminate PMI. Shellpoint stated I have not meet XXXX XXXX requirements to lift PMI because my LTV was not 70 %. Shellpoint is violating the HPA by requiring I pay down my mortgage balance to 70 % of its original value again, this is a single-family home and my principal residence. HPA 4902 ( b ) states, ( b ) Automatic termination A requirement for private mortgage insurance in connection with a residential mortgage transaction shall terminate with respect to payments for that mortgage insurance made by the mortgagor -- ( 1 ) on the termination date if, on that date, the mortgagor is current on the payments required by the terms of the residential mortgage transaction ; or ( 2 ) if the mortgagor is not current on the termination date, on the first day of the first month beginning after the date that the mortgagor becomes current on the payments required by the terms of the residential mortgage transaction. 4901 ( 18 ) states ( 18 ) Termination date means -- ( A ) with respect to a fixed rate mortgage, the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan. Not only did Shellpoint error and deny my request for PMI termination, they told me to remove it I needed to PAYOFF my loan, see attached denial letter. Based on the LTV, Shellpoint should have removed my PMI automatically, I should not have even needed to request PMI to be removed. I find Shellpoints response UNFAIR and ABUSIVE by telling me I need to payoff my loan. The HPA gives homeowners like me protections from these abusive practices. Is XXXX XXXX and /or Shellpoint sending denial letters like this to all senior citizens because our income is not likely to increase and they want to ensure theyre protected from potential loss if a foreclosure where to occur? This practice is predatory and violates any concept of Fair Mortgage Loan Servicing rules. Finally, Shellpoint is clearly violating XXXX XXXX Servicing Guide as it relates to termination. XXXX XXXX Servicing Guide, section B-8.1-04 states that PMI should automatically terminate for my single-family primary residence at 80 % LTV. Clearly, Im well below this requirement. I am requesting the assistance of this regulator for two purposes. First, I would like my PMI terminated. Second, in accordance with HPA 4902 ( f ), I want a refund of all PMI premiums that I overpaid based on XXXX XXXX guideline of 80 % LTV. Also, I believe it would behoove the regulator to investigate the Fair Servicing practices of Shellpoint to determine if these unfair and abusive practices ( requiring I payoff my loan to get PMI removed ) and clear violations of HPA are targeted to senior citizens, a protected class of individuals. Also, has XXXX XXXX instructed its servicer to delay removing PMI in violation of HPA and its own Servicing Guide because Im a XXXX XXXX with limited income and they want to protect themselves from financial loss in the event of a foreclosure? Attached is the relevant sections of the HPA and XXXX XXXX Servicing Guide, and my denial letter from Shellpoint. Thank you for your assistance. Sincerely, XXXX XXXX
Company Response: Company believes the complaint is the result of a misunderstanding
State: GA
Zip: 30097
Submitted Via: Web
Date Sent: 2020-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-10
Issue: Trouble during payment process
Subissue:
Consumer Complaint: I have a conventional mortgage loan with NewRez LLCXXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX PA XXXX. I have paid my fee of {$150.00} for appraisal to NewRez for cancellation of PMI on XX/XX/2020. My loan amount is approx $ 55k and the property is appraised at $ XXXX. They continue to delay the cancellation of {$75.00} per month with no clear explanation. I have called numerous times and spoke to countless supervisors and still as of XX/XX/2020 they have not resolved the issue.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AZ
Zip: 852XX
Submitted Via: Web
Date Sent: 2020-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-10
Issue: Applying for a mortgage or refinancing an existing mortgage
Subissue:
Consumer Complaint: Starting XXXX XXXX With agent XXXX XXXX up until today my Loan # XXXX seemed to be going in circles.I have never been late on a payment and purchased the property XXXX XXXX XXXX XXXX XXXX Arizona XXXX XX/XX/2018 for XXXX. The home has appreciated to XXXX to XXXX.My credit score was 750-770. The amount of the new loan will be XXXX. I am not asking for any money out. My XXXX XXXX account is at XXXX dollars.I gave Bank Statements that showed XXXX to XXXX per month.My second income property is valued at XXXX XXXX in XXXX XXXX with a XXXX balance and is also with New Rez Mortgage.My documents state that if this loan doesn't close within 90 days of application my borrowers rights may terminate.My current Insurer is XXXX XXXX which was presented to XXXX XXXX and was better coverage and less expensive than any presented.Many times I resent documents to make sure that the were in New Rez possession.I reached out to XXXX XXXX who was XXXX XXXX Superior with no return calls twice.I also reached out to Mr. XXXX of New Rez with no return call.I believe XXXX XXXX as I knew time was of the essence.My current interest rate is 4.8750 which is high and my payment is XXXX Dollars per month.My Loan Estimate was 3.25 % and a payment of XXXX with taxes and Insurance of XXXX included. Remember my Insurance is already in place and New Rez is the loss payee.I hate to say it but a loan agent not named said it might have slowed due to my age XXXX years old.Now suspect is {$6600.00} estimated closing costs and {$7300.00} Cash to close.Shellpoint Mortgage is associated with NEW REZ
Company Response:
State: CA
Zip: 94544
Submitted Via: Web
Date Sent: 2020-07-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-10
Issue: Problem with a credit reporting company's investigation into an existing problem
Subissue: Investigation took more than 30 days
Consumer Complaint: I have filed a dispute with the credit bureaus in regards to incorrect items on my report. It has been well over 30 days and I have not received any feedback or investigation results.
Company Response:
State: OH
Zip: 43213
Submitted Via: Web
Date Sent: 2020-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-09
Issue: Trouble during payment process
Subissue:
Consumer Complaint: You are about to hear the craziest story. NewRez LLC NMLS # XXXX automatically put me on covid assistance when I didn't ask to be put on it. I found this out in XX/XX/2020 when they didn't take automatic payment that has been set up since the beginning of my loan. In XXXX I noticed my payment was not taken out of my back account and called and questioned why it was not taken out. At that time they told me that they enrolled everyone in this program which I questioned and asked if that was legal. I told them that i didn't ask to be signed up for this program and to remove me right away and put my regular status back on Let 's fast forward two months later. I was out of town and just got back and had letters in my mailbox that i was delinquent on my payments and they reported me to the credit bureau. I called and quested this and once again was given an excuse to why it happened. They gave me some excuse and told me they forgot to turn back on my autopay. I feel like this company is trying to report me and raise my rate for being delinquent or trying to foreclose my house. When I called, they once again made it seem like it was my fault. Its seems like this is highly illegal for someone to sign me up in a program that I never asked to be put into. Then they mess up my payment structure and hold me accountable. I asked for them to send me a letter or email explaining what they did because I don't want to mess up my credit and they said they would but I never received it. I would love your help. This company has been nothing but shady since they purchased my load. THese types of companies should not be allowed to purchase loans. Thanks XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 33434
Submitted Via: Web
Date Sent: 2020-07-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-09
Issue: Struggling to pay mortgage
Subissue:
Consumer Complaint: SHELLPOINT MTG SERVICING FIRST TOLD ME ( AND PROBABLY EVERY ONE ELSE ) I HAD TO MAKE A BALLOON PAYMENT AFTER MY FIRST COVID-19 RELIEF EXTENSION. THE CARES ACT THEN CLARIFIED THAT THE CONSUMER DOES NOT HAVE TO MAKE A BALLOON PAYMENT. NOW THEY ARE SAYING I MUST PROVIDE DOCUMENTATION AT THE END OF THE FORBEARANCE PERIOD WHEN THE CARES ACT LAW CLEARLY STATES NO DOCUMENTATION NEEDED. NO DOES NOT MEAN NO IN THE BEGINNING BUT YES LATER. NO MEANS NO.THEY ARE TRYING TO CIRCUMVENT THE CARES ACT LAW BY REQUIRING DOCUMENTS AT THE END OF THE FORBEARANCE PERIOD EVEN IF I'M JUST DEFERRING THE PAYMENTS AS ALLOWED BY THE CARES ACT LAW.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 347XX
Submitted Via: Web
Date Sent: 2020-07-21
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-09
Issue: Trouble during payment process
Subissue:
Consumer Complaint: We purchased a home on XX/XX/XXXX at XXXX XXXX XXXX XXXX, XXXX, VA XXXX. At the time, we put 10 % down of the asking price and were accordingly assessed a PMI of {$81.00} per month. On XX/XX/XXXX, we paid down the cost of the loan so that it is below 78 % of the original value of the home. According to the Homeowners Protection Act, the bank should automatically cancel the PMI. The current lender is NewRez and the loan number XXXX. The bank refuses to cancel the PMI claiming that XXXX XXXX is somehow involved in the loan ( they are their backer in the words of the associate ) and XXXX XXXX refuses to cancel the PMI and requests an appraisal on the property. We have two issues with this : 1 ) According to the Homeowners Protection Act, the PMI cancellation should be automatic upon reaching 78 % of the original value ; asking for an appraisal is not right 2 ) At no point in time XXXX XXXX has been a part of our loan process - why are they involved now? Our original mortgage was with XXXX XXXX, and subsequently sold several times to various lenders as part of whatever loan packaging they do. According to the XXXX XXXX website lookup, they do not own our loan. We want the cancellation of the PMI as we have fulfilled our obligations under the Homeowners Protection Act. Please, help!
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AE
Zip: XXXXX
Submitted Via: Web
Date Sent: 2020-07-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-09
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: Shellpoint is reporting incorrect information to the credit bureaus regarding the status of my account. This is the 2nd time in just over 2 months that they have submitted incorrect information regarding my account to the credit reporting agencies. This is causing me hardship and potential monetary loss, especially in these times of covid-19. First of all, the account is not 30 days late as they keep reporting but is current. Additionally, a past due amount of {$2500.00} is being shown. I would like to see a detailed itemization of that amount. I have previously written to shellpoint numerous times regarding spurious charges on my account and no one has replied back to me. I again sent a letter dated XX/XX/XXXX and now XX/XX/XXXX asking for an explanation of this as well.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NJ
Zip: XXXXX
Submitted Via: Web
Date Sent: 2020-07-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-09
Issue: Trouble during payment process
Subissue:
Consumer Complaint: I initially had a mortgage with XXXX in XXXX, I learned in XXXX that my loan was now serviced by ShellPoint. During this advisement I requested for a loan modification since I was unable to afford the mortgage payments which was approximately {$2200.00} I was approved in XXXX for a loan modification which I was advised that my payments were going to do down to approximately {$1700.00} a month. I accepted and agreed to make my trial payments, upon making four trial payments my loan became permanently modified in XX/XX/XXXX. In XX/XX/XXXX I was advised that my payments were going to go up to approximately {$1700.00} due to an escrow shortage, I made my payments accordingly and never missed a month. In XX/XX/XXXX I received notification that my new mortgage was going to be approximately {$2400.00} I was alarmed, confused and concerned. I called and spoke to multiple people and no one knew what was occurring but I was advised that my taxes went up drastically. I advised the representative that it was hard for me to understand that since I live in New York and there's a 2 % Cap. I then called my county and they advised that the bank never paid the School Taxes in XX/XX/XXXX that's why they added those taxes to the county taxes that were due and paid in XX/XX/XXXX. Upon bringing this to ShellPoint 's attention they response was that the previous servicer XXXX did not disclose the School Taxes to them therefore, they did not know. I called a few times and tried to get answers and assistance on what can be done in a situation such as this and I was advised that I can not apply for a new loan modification since FHA guidelines only allows you to apply after 24 months. I believe this is unfair since it wasn't my error but they are penalizing me and now charging me a mortgage amount that I can not afford, I've paid what I'm able to afford and haven approved for the COVID forbearance however, that is only until XX/XX/XXXX, so when that expires which is granted for 3 months ( XXXX, XXXX and XX/XX/XXXX ) what happens to the increased mortgage amount. I believe that the bank should look into a possible exception to the loan modification since this error was between them and the previous servicer. I believe a system or some form of checks and balances should haven been conducted to ensure they knew everything about the loan and payments required when they became the new servicer. I made a complaint via the XXXX XXXX XXXX and they keep responding advising to work with the loss mitigation department and the escalations department, however, the loss mitigation department is advising that they can not do anything and the escalations department has not responded to my many complaints and concerns that I've included them in the e-mail communication. I feel like my back is against the wall and that the bank is not trying to do anything to fix this problem that I did not cause. They also advised that the previous lender omitted the tax information however, upon reviewing the loan history summary that they provided it looks like the taxes they missed in XX/XX/XXXX was always paid by the previous lender so not sure where the omission resulted. I'm requesting assistance since I do want to keep my home for me and my children, it is important for me to keep my home, this has caused me so much stress. I've been going back and forth with Shellpoint and their personnel since XX/XX/XXXX trying to figure out how this can be resolved but they are saying nothing can be done for an error that they were according to them not aware from the escrow portion of my mortgage.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 12553
Submitted Via: Web
Date Sent: 2020-07-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2020-07-08
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: I was on the COVID 19 plan with NEW REZ MORTGAGE. I was on forebearance plan for XXXX XXXX AND XXXX. They reported me late for XXXX AND XXXX and my credit is destroyed. I was told and all the information available says that ANYONE that is on CORONVIRUS forebearance can not have derogatory credit showing they are late. Well my credit report is showing that I am late. I need these late payments removed. I am not late, nor was I late based on the COVID 19 agreement. Please help me.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60630
Submitted Via: Web
Date Sent: 2020-07-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A