Mortgage -- Trouble during payment process -- Complaint #13065826
Complaint Overview
Complaint ID: 13065826
Company: Shellpoint Partners, LLC
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
Sub-Issue: Escrow, taxes, or insurance
State: Louisiana
ZIP Code: 706XX
Date Received: 2025-04-18T12:00:00-05:00
Date Sent to Company: 2025-04-18T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
Since XX/XX/XXXX, NewRez LLC/Shellpoint Mortgage Servicing has wrongfully withheld insurance settlement proceeds for a claim related to hurricane damage to my home. These funds, intended for repairs to NewRez 's collateral, were placed in a monitored escrow account after reaching NewRez 's {$40000.00} threshold, as confirmed by their Loss Draft procedures. I complied with all requirements, submitting endorsed settlement checks, contractor invoices, receipts, and inspection reports verifying XXXX % repair completion ( XX/XX/XXXX ) and XXXX % completion ( XX/XX/XXXX ). Despite this, NewRez has failed to release any progress draws, impeding my ability to complete repairs and fulfill my mortgage obligation to restore the property. Under XXXX Revised Statutes 6:337 ( A ) and ( C ), NewRez is required to hold these proceeds in a segregated, interest-bearing escrow account and credit all interest to me. Per 6:337 ( D ), I am entitled to a full accounting of the account, which I demanded in an email and letter to NewRez 's claim processor, NewRez 's Loss Draft Director and VP of Compliance in XXXX, XXXX on or before XX/XX/XXXX. NewRez has not responded, provided the audit, or released the funds by the XX/XX/XXXX deadline, violating state law. XXXX XXXX XXXX, NewRez 's agent, has exacerbated the issue by reassigning my claim to new associates at least XXXX times since XX/XX/XXXX without notice, leading to unresponsiveness and lack of transparency about the escrow account. This pattern of delay and mismanagement mirrors complaints reported to the CFPB and XXXX about XXXX XXXX XXXX handling. The withholding of these funds has caused financial strain, delayed repairs amidst post-hurricane challenges ( labor/material shortages, rising costs ), and prevented me from fully restoring my family 's sole residence. NewRez 's actions constitute unfair and deceptive practices, harming me as a consumer. What Happened : XX/XX/XXXX : Filed insurance claim for hurricane damage. XXXX XXXX : Submitted all required documents ( checks, invoices, receipts ) to NewRez/XXXX XXXX XXXX XXXX with delivery receipts. XXXX : Funds moved to escrow after reaching {$40000.00} ; repairs progressed with NewRez 's assurances of progress draws. XX/XX/XXXX, and XX/XX/XXXX : NewRez-contracted inspectors verified 65 % and 90 % repair completion. XX/XX/XXXX and XX/XX/XXXX : Sent demand letters to NewRez for escrow audit and fund release, per La. XXXX. XXXX XX/XX/XXXX : NewRez failed to respond or comply.
Frequently Asked Questions
What is Complaint #13065826 about?
Complaint #13065826 was filed against Shellpoint Partners, LLC regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2025-04-18T12:00:00-05:00.
How did Shellpoint Partners, LLC respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Shellpoint Partners, LLC?
Yes, visit the Shellpoint Partners, LLC company profile at readthecomplaint.com/company/shellpoint-partners-llc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.