Shellpoint Mortgage Servicing Accused of Illegal Fees: What Maryland Homeowners Need to Know

Homeowners across Maryland are facing new revelations about unlawful mortgage fees charged by Shellpoint Mortgage Servicing, formerly known as NewRez LLC. A recent federal class action, Yates v. NewRez LLC, combined with enforcement actions from state regulators and the CFPB, highlights a troubling pattern: Shellpoint has repeatedly put profits above borrower protections.

For Maryland families, this case is more than just legal news. It could mean hundreds or even thousands of dollars in refunds, and it raises urgent questions about whether Shellpoint is abusing its position as a mortgage servicer.

The Yates Class Action: Illegal Inspection Fees

The most recent lawsuit, Yates v. NewRez LLC, was filed in Maryland federal court. Homeowner Irene Yates alleged that Shellpoint illegally charged “property inspection fees” on her residential mortgage — charges that are expressly prohibited under Maryland law.

According to Maryland’s usury law (Md. Code § 12-121(b)), mortgage lenders and servicers are not allowed to impose inspection fees on residential loans, except in rare circumstances that did not apply here.

Despite this, Shellpoint allegedly added these fees to Yates’ mortgage account and to the accounts of over 1,500 Maryland homeowners. Court records show that these inspection fees added up to more than $270,000 collected from borrowers statewide.

In August 2023, the court certified the case as a class action, meaning every affected Maryland borrower may be entitled to compensation if the plaintiffs succeed.

A Pattern of Misconduct

The Yates case is only one example of a much larger pattern. Over the past several years, Shellpoint has been repeatedly accused — and fined — for deceptive mortgage practices:

• Illegal Fees in Maryland (2023): The Maryland Commissioner of Financial Regulation found that Shellpoint had illegally charged more than $270,000 in inspection fees to state borrowers.

• CFPB Fine (2022): The Consumer Financial Protection Bureau fined Shellpoint $2.8 million for misrepresenting the terms of a loan modification program. Many borrowers were led to believe they were entering affordable repayment plans, only to face different terms later.

• Unauthorized Forbearance (Shapiro v. Shellpoint, 2022): A borrower alleged that Shellpoint placed their loan into forbearance without consent, causing a default and a steep drop in credit score.

• Property Preservation Fee Lawsuit (2023): In another class action settlement, Shellpoint and MTGLQ Investors agreed to resolve claims that they charged illegal “property preservation” fees to struggling homeowners.

These cases show that Shellpoint’s problems are not isolated mistakes — they are systemic practices that have harmed borrowers nationwide.

Why Illegal Fees Matter

At first glance, a $10 or $20 “inspection fee” might not seem significant. But these charges add up quickly — especially when they are imposed month after month on homeowners already struggling to make payments.

For many families, these illegal fees:

• Inflate monthly balances, making it harder to catch up on payments

• Increase the risk of foreclosure when accounts show unpaid charges

• Damage credit reports if borrowers refuse to pay unlawful fees

• Mask the true cost of their loan

This creates a cycle of debt and confusion, often at the expense of the most vulnerable borrowers.

What This Means for Maryland Homeowners

If you live in Maryland and your loan was serviced by Shellpoint, you may have been affected by these unlawful practices. Borrowers should:

1. Review Mortgage Statements Carefully – Look for “inspection fees,” “property preservation fees,” or other unusual charges.

2. Check Past Statements – These fees may have been charged months or even years ago.

3. Request a Full Accounting – You have the right to ask your servicer for a complete payment history.

4. Seek Legal Advice – A qualified attorney can determine whether you may be part of the class action or entitled to an individual claim.

The certification of the Yates case means that Maryland homeowners may soon have an opportunity for recovery. But you don’t need to wait to act.

Oversight Is Needed

Mortgage servicers like Shellpoint hold enormous power over homeowners’ lives. They decide how payments are applied, whether fees are added, and how accounts are reported to credit agencies. When that power is abused, families risk foreclosure, damaged credit, and financial ruin.

The repeated lawsuits and regulatory fines against Shellpoint show that strong oversight is essential. Without legal accountability, servicers may continue to exploit borrowers with hidden fees and misleading practices.

Our Commitment to Homeowners

At KBD Attorneys, we represent borrowers who have been harmed by illegal mortgage fees, deceptive loan servicing, and unfair debt collection practices. We are closely monitoring the Shellpoint litigation and working to protect Maryland families from abuse.

No homeowner should be charged unlawful fees or misled about their mortgage terms. If your loan has been serviced by Shellpoint — or if you suspect you have been charged improper fees — we encourage you to take action.

Call to Action

If you live in Maryland and were charged suspicious fees on your mortgage by Shellpoint (formerly NewRez), you may have legal rights.

Contact us today for a free consultation. We can review your mortgage statements, explain your options, and help you fight back against unlawful practices.

You don’t have to face powerful mortgage companies alone. If you have had extra fees charged, especially inspection fees, we are here to protect your home, your rights, and your family’s future.

Sources:

• Maryland Court’s class certification opinion in [Case Name v. Shellpoint Mortgage Servicing]

• Maryland Usury Law, Maryland Consumer Debt Collection Act, Maryland Consumer Protection Act