Mortgage -- Struggling to pay mortgage -- Complaint #11346149

Mortgage Servicer Accused of Discriminatory Loan Modification Denials

Complaint Overview

Complaint ID: 11346149

Product: Mortgage

Sub-Product: Conventional home mortgage

Sub-Issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

State: New Jersey

ZIP Code: 085XX

Date Received: 2024-12-31T12:00:00-05:00

Date Sent to Company: 2024-12-31T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Risk Assessment

Risk Level: high

The consumer alleges a pattern of discriminatory practices and repeated denial of loan modifications, even after legal challenges, suggesting a high risk of continued consumer harm and potential regulatory scrutiny.

Consumer Sentiment: negative

Topics: Mortgage modification, Discrimination, Foreclosure, Consumer protection

AI Analysis

CFPB complaint 11346149 was filed against Shellpoint Partners, LLC regarding Mortgage (Conventional home mortgage), specifically about "Struggling to pay mortgage". A consumer is alleging discriminatory practices by Shellpoint Partners, LLC, in denying mortgage modifications despite consistent payment history and a significant down payment, particularly after the death of their spouse. The complaint was received on December 31, 2024 from New Jersey. The company responded with "Closed with explanation".

Consumer Narrative

For the past many years, our mortgage lenders, namely, Shellpoint, XXXX, XXXX XXXX XXXX XXXX XXXX Loan XXXX and former XXXX loan XXXX and their former Attorneys, most recently, Attorney/s XXXX XXXX XXXX, XXXX XXXX XXXX loan modification discriminately. They would cite their reasons- incomplete documentation, insufficient funds, and the monthly payment if modified, would be larger than the original monthly amount. And finally, you now owe a lot, and there will be no mortgage modification. " Your only option to avoid a foreclosure is to come up with the entire balance or give the title in lieu, or short sale, find a realtor next to you, and sell. '' We have never taken a loan or equity on the house and paid a XXXX percent down payment at the purchase of the house in XXXX. My husband, who struggled with XXXX and anxiety after the loss of his job, passed away in XX/XX/XXXX, and even since then, they have refused to modify the loan. These will be followed by letters and countless phone calls threatening foreclosure for failure to carry out the above. Under the name, XXXX, our lender filed for foreclosure in XXXX but was denied after we contested it. They have sold the loan many times in between our countless applications for loan modification requests, and each supposedly new lender would invite us to apply for a new loan modification. Subsequently, the new lender would engage in the same practices as the former. We have also used several loan modification attorneys to secure a loan modification, but we have been unsuccessful. Their threat for us to surrender the title or sell the house continued. Simultaneously, my then attorney was working with our lender, XXXX, and their attorneys to obtain a loan modification ; XXXX sold the loan to Shellpoint and started foreclosure proceedings in the court. Finally, with the assistance of a bankruptcy attorney, I filed for bankruptcy, chapter XXXX, in XX/XX/XXXX to mediate and help structure the loan so that I could pay my debt. I also filed for a new loan modification through the bankruptcy court, providing all documentation and income proofs needed. Since then, I have made regular monthly mortgage payments to Shellpoint and the trustee payments, since XX/XX/XXXX. However, Shellpoint and their Attorneys, XXXX XXXX XXXX, till today, XX/XX/XXXX, have continued with the same tactics and practices of requests for more documentation, repeated requests to Complete another homeowner financial worksheet, proof of income, bank statements/explanation of deposits and withdrawals, proof of insurance etc, they have received already. Next, they are alleging incomplete documentation, demanding a listing of the house for sale, rejection of documents, demands for which realtor is selling the house or name of buyer/s, and continued threats of canceling my modification application and proceeding with the sale of the house. Once again, they and their lawyers are not cooperating with the modification application I made through the bankruptcy court. They are stalling and continuing with their threats! Their actions and unfair treatment prejudice me. I feel unfairly discriminated against and treated by my lender and their attorneys. I feel blackmailed by their actions. My mortgage company and their attorneys have repeatedly denied me a modification to blackmail me and my family, causing me and my family emotional distress. All their expressed and implied actions do not show any willingness to engage in ethical practices based on the Civil Rights and Fair Housing Act. I appeal to you to look into this matter seriously.

What You Should Do -- Consumer Action Plan

Consumers facing similar issues should meticulously document all communications and submissions, consider seeking legal counsel specializing in mortgage law, and be aware of their rights regarding loan modifications and foreclosure prevention.

Legal Context & Consumer Protection Laws

The Fair Housing Act and state-specific consumer protection laws prohibit discrimination in lending and loan servicing, including the modification process.

Regulatory Insight

Regulators may investigate allegations of discriminatory practices in loan modification programs, especially when patterns of denial are evident and affect vulnerable consumers.

Resolution Likelihood

likely

State-Specific Consumer Protections

New Jersey law provides specific protections for homeowners facing foreclosure and outlines requirements for mortgage servicers.

Industry Comparison

While many mortgage servicers strive for fair modification processes, some face scrutiny for inconsistent or potentially discriminatory practices.

Related Issues

Frequently Asked Questions

What is CFPB complaint 11346149 about?

CFPB complaint 11346149 involves Mortgage (Conventional home mortgage). The consumer reported an issue with "Struggling to pay mortgage", specifically "Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure". This complaint was filed against Shellpoint Partners, LLC on December 31, 2024.

Which company is complaint 11346149 filed against?

Complaint 11346149 was filed against Shellpoint Partners, LLC. You can view all complaints against this company on their profile page at /company/shellpoint-partners-llc.

What was the company's response to complaint 11346149?

Shellpoint Partners, LLC responded with "Closed with explanation". The response was marked as timely by the CFPB.

When was complaint 11346149 filed?

Complaint 11346149 was received by the CFPB on December 31, 2024. It was sent to Shellpoint Partners, LLC on December 31, 2024.

What state was complaint 11346149 filed from?

Complaint 11346149 was filed from New Jersey. You can view all complaints from this state at /state/NJ.

Was the consumer satisfied with the resolution of complaint 11346149?

Dispute information is not available for complaint 11346149.

What product category is complaint 11346149 about?

Complaint 11346149 is categorized under "Mortgage", specifically "Conventional home mortgage". This is one of the product categories tracked by the CFPB.

How was complaint 11346149 submitted?

Complaint 11346149 was submitted via Web. The CFPB accepts complaints through web, phone, mail, email, fax, and referral channels.

What are the consumer's legal options for complaint 11346149?

The Fair Housing Act and state-specific consumer protection laws prohibit discrimination in lending and loan servicing, including the modification process. This relates to a Mortgage complaint against Shellpoint Partners, LLC involving "Struggling to pay mortgage".

How likely is complaint 11346149 to be resolved?

Resolution likelihood: likely. The company's current response is "Closed with explanation". The company did respond in a timely manner, which is a positive indicator.

What does the risk level mean for complaint 11346149?

This complaint is rated as high risk. The consumer alleges a pattern of discriminatory practices and repeated denial of loan modifications, even after legal challenges, suggesting a high risk of continued consumer harm and potential regulatory scrutiny.

What regulatory actions apply to complaint 11346149?

Regulators may investigate allegations of discriminatory practices in loan modification programs, especially when patterns of denial are evident and affect vulnerable consumers. The CFPB tracks complaints like this one to identify patterns of misconduct across the Mortgage industry.

What should the consumer do about complaint 11346149?

Are there state-specific protections for complaint 11346149?

New Jersey law provides specific protections for homeowners facing foreclosure and outlines requirements for mortgage servicers. This complaint was filed from New Jersey.

How does complaint 11346149 compare to industry norms?