Shellpoint Mortgage Servicing, formerly known as NewRez LLC, is a mortgage servicing company that has been involved in several lawsuits alleging various misconduct, including:
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Illegal Fees: Shellpoint has been accused of charging illegal fees to borrowers, such as inspection fees and property preservation fees. In 2023, the Maryland Commissioner of Financial Regulation found that Shellpoint had charged to or collected from Maryland borrowers more than $270,000 in illegal inspection fees.
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Deficiencies in Loan Servicing: Shellpoint has also been accused of providing inadequate loan servicing to borrowers, such as failing to properly respond to inquiries and failing to provide timely and accurate information about loan balances and payments.
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Misrepresentation of Loan Terms: Shellpoint has also been accused of misrepresenting the terms of loan modifications and other mortgage products to borrowers. In 2022, the Consumer Financial Protection Bureau (CFPB) fined Shellpoint $2.8 million for misrepresenting the terms of a loan modification program.
These lawsuits have resulted in millions of dollars in settlements for borrowers and have tarnished Shellpoint’s reputation in the mortgage industry.
Here are some of the most notable Shellpoint Mortgage lawsuits:
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Yates v. NewRez LLC (2023): This class action lawsuit alleges that Shellpoint illegally charged inspection fees to Maryland homeowners in violation of Maryland law.
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Shapiro v. Sheloint Mortg. Servicing (2022): This lawsuit alleges that Shellpoint placed a borrower’s loan into forbearance status without authorization, causing the borrower to default on the loan and a dramatic drop in their credit score.
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MTGLQ Investors and NewRez (Shellpoint) Class Action Settlement (2023): A Settlement Agreement was reached in a class action lawsuit alleging that MTGLQ Investors and NewRez LLC d/b/a Shellpoint Mortgage Servicing (“Shellpoint”) charged illegal fees for property preservation activities.
These lawsuits highlight the importance of careful oversight of mortgage servicing companies to protect borrowers from unfair practices.
If you are a borrower who believes you have been harmed by Shellpoint Mortgage Servicing, you should consider contacting an attorney to discuss your legal options.
