Shellpoint Mortgage Servicing (formerly NewRez LLC) has faced numerous lawsuits alleging illegal fees, loan servicing deficiencies, and misrepresentation of loan terms. These allegations have resulted in settlements and fines, raising concerns about borrower protection.
Detailed Overview:
- Accusations:
- Illegal fees: Shellpoint has been accused of charging borrowers illegal fees like inspection and property preservation charges. In 2023, Maryland authorities found them collecting over $270,000 in illegal fees.
- Inadequate loan servicing: Allegations include failing to respond to inquiries and provide timely/accurate information about loans.
- Misrepresentation: Shellpoint has faced accusations of misrepresenting loan modification terms, leading to a $2.8 million CFPB fine in 2022.
- Impacts:
- Millions in settlements for borrowers.
- Tarnished reputation for Shellpoint.
- Notable Lawsuits:
- Yates v. NewRez LLC (2023): Maryland class action lawsuit alleging illegal inspection fees.
- Shapiro v. Sheloint Mortg. Servicing (2022): Unauthorized forbearance placement harming credit score.
- MTGLQ Investors and NewRez (Shellpoint) Class Action Settlement (2023): Settlement over alleged illegal property preservation fees.
- Importance of Oversight: These cases highlight the need for vigilance to protect borrowers from unfair practices.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| 2023 | Yates v. NewRez LLC | N/A | MD Circuit Court | MD class action lawsuit alleging illegal inspection fees. |
| 2022 | Shapiro v. Sheloint Mortg. Servicing | N/A | Montgomery County District Court (MD) | Unauthorized forbearance placement harming borrower. |
| 2023 | MTGLQ Investors and NewRez (Shellpoint) Class Action Settlement | N/A | N/A | Settlement over alleged illegal property preservation fees. |
Disclaimer: This information is based on publicly available sources and is not intended as legal advice. Please consult with an attorney for legal matters.
