Newrez Servicing Arm Sued Over RESPA Violations

Newrez LLC, operating as Shellpoint Mortgage Servicing, faces a lawsuit in New Jersey filed by homeowner Autumn M. Urling. The complaint, lodged in the Superior Court of New Jersey, alleges that Shellpoint engaged in years of unfair mortgage servicing practices that prevented Urling from having a meaningful opportunity to avoid foreclosure. Urling claims the company repeatedly delayed decisions, provided inconsistent information, and mishandled her requests for mortgage assistance, leading to financial losses and jeopardizing her home and home-based business.

The lawsuit, filed on July 8 and amended on July 16, asserts violations of the federal Real Estate Settlement Procedures Act (RESPA) and its Regulation X, alongside the New Jersey Consumer Fraud Act and state common law. Urling specifically points to a reinstatement notice dated June 22, 2026, which she claims she did not receive until approximately June 30, leaving only one day before the July 1 payment deadline. She argues this timeline was insufficient to reasonably obtain and transmit the necessary funds to reinstate her loan.

According to the complaint, Urling submitted multiple loss-mitigation applications, notices of error, and requests for reconsideration to reinstate or modify her mortgage. She alleges that Shellpoint "repeatedly failed" to provide timely or adequate responses and continued foreclosure proceedings while these requests were still pending. The lawsuit also claims the company did not provide a written explanation regarding the de-escalation of her loan, further compounding her difficulties.

A representative for Newrez/Shellpoint stated, "as a matter of policy, we do not comment on ongoing litigation. We will address any claims through the appropriate legal process." The case highlights concerns about mortgage servicing practices and adherence to federal and state consumer protection laws.