Sadly, we have had to initiate litigation again against Shellpoint Mortgage (aka, NewRez, LLC) over their deliberate refusal to comply with state laws mandating mortgage deferment protections for deployed military families.
This lawsuit attaches as exhibits letters from Shellpoint Mortgage (NewRez) expressly refusing to comply with California Military and Veterans Code § 800. Shellpoint then did in fact start attempting to collect from the deployed servicemember the full amounts each month of principal plus interest, which resulted in Shellpoint falsely claiming that she owes thousands of dollars more than what she actually owed. Shellpoint then began to make matters even worse by falsely claiming that the military member was in default of every single monthly payment in full (despite the fact that the deferment was mandatory under California law), and began to launch multiple threats of foreclosure, and multiple months of negative credit reporting (which placed the military member at risk of being demoted and/or stripped of top security clearance).
Based on the fact that this is now two lawsuits that our firm has had to file against Shellpoint Mortgage in recent months, it seems clear that they are flagrantly and deliberately refusing to comply with mandatory state laws that are intended to protect deployed military members.
When a deployed servicemember is unable to focus on her missions during deployment because she is focused on the stress and aggravation caused by such flagrant refusals to follow mandatory deferment protections, then the mortgage company is placing our servicemembers’ lives at risk.
As such, it would seem that Shellpoint Mortgage is doing nothing more than prioritizing their own financial profitability over the lives of our dedicated servicemembers who have chosen to put their lives at risk to preserve the safety of our nation.
In our opinion, Shellpoint Mortgage definitely deserves significant punitive damages in order to teach them that they are required to comply with California law, and also to serve as an exemplary lesson against all other mortgage servicing companies.
As we have stated many times before, if you or a loved one is experiencing a violation of your rights as a deployed military family, please do not hesitate to contact us for a free and confidential consultation.