Mortgage -- Closing on a mortgage -- Complaint #4797610
Complaint Overview
Complaint ID: 4797610
Company: Shellpoint Partners, LLC
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Closing on a mortgage
State: California
ZIP Code: 94531
Date Received: 2021-10-10T12:00:00-05:00
Date Sent to Company: 2021-10-10T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I applied for a cash-out refinance with NewRez on or around XX/XX/2021. I wanted to take out {$30000.00} in cash to pay for improvements, including a new AC unit and some kitchen renovations. During the process, I asked my loan officer what would happen to the escrow funds on my now-previous loan, and was told by my loan officer that I would be refunded these funds after closing. After this point, my wife and I began getting estimates for a new AC unit and other home improvements. In mid-XXXX, I received an updated Closing Disclosure that indicated I would be receiving {$26000.00} in cash out instead of {$30000.00}. I emailed my concerns and my new loan officer ( who had replaced my initial loan officer ) called and told me that the amount had changed because, in part, I had to pay for the escrow on my new loan up front. I reminded my new loan officer that the previous loan officer had told me I would get a refund for my previous escrow funds, which at that point had totaled {$3400.00}. I asked if I would still be refunded this amount after closing. He confirmed I would. Because I was not getting the cash out that I expected, this refund meant I would still have {$30000.00} for the improvements we had budgeted. I signed closing papers for my loan on XX/XX/2021. Except for the cash out figure rising slightly to {$27000.00}, I did not notice anything unusual during signing. My loan funded on XX/XX/2021 and the funds hit my account the following day. On XX/XX/2021, I sent the senior loan processor on my loan an email asking when and how the refund from my previous escrow account would arrive, as had been promised to me. The processor claimed I had signed a document during closing that authorized NewRez to apply my previous escrow funds to my loan payoff. The processor sent an unsigned copy of this document, which I do not recall seeing before. My wife and I both went through my loan file provided to us by the notary several times and could not find a copy of this document. So, first, I was told I would receive {$26000.00} cash out + {$3400.00} escrow refund for a total of {$30000.00}. We ended up getting {$27000.00} and no escrow refund. Even if I signed the paper NewRez claims I did -- and I DON'T believe I did -- where did the other {$3000.00} go? As a result, we now are forced to cut our home improvement budget by 10 % or take out a second loan.
Frequently Asked Questions
What is Complaint #4797610 about?
Complaint #4797610 was filed against Shellpoint Partners, LLC regarding Mortgage specifically about Closing on a mortgage. It was received by the CFPB on 2021-10-10T12:00:00-05:00.
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.