CHARLESTON — A Kanawha County man is suing Shellpoint Mortgage Servicing for failing to recognize he paid off his mortgage loan.
NewRez LLC is doing business as Shellpoint Mortgage Servicing.
Stern & Eisenberg PC and Terra Abstract Trustee West Virginia Inc. were also named as defendants in the suit.
Kevin C. Jenkins was a resident of a home in St. Albans that serves as collateral for a consumer loan owned and serviced by NewRez, according to a complaint filed in Kanawha Circuit Court.
On Oct. 9, 2022, a fire occurred at Jenkins' home in St. Albans rendering the home a total loss and in April 2023, the remnants of the home were demolished at the direction of the Building and Zoning official for St. Albans.
Jenkins claims on Oct. 12, 2022, he notified NewRex of the total loss of the home and demanded a payoff amount be forwarded to him or to his homeowner's insurance carrier.
On Oct. 26, 2022, Jenkins' homeowner's insurer indicated it received a payoff confirmation and issued a check to NewRez for the clear and unequivocal purpose of paying off the balance due on the consumer loan, however, despite the submission of the payoff amount, Jenkins received a statement in November that failed to note any credit for the payoff amount, according to the suit.
Jenkins claims after multiple communication attempts, NewRez claimed it had not received the mortgage payoff check, so the insurance carrier stopped payment on the initial check and issued a new check and sent it via certified mail. The insurer confirmed the check was deposited by NewRez.
In February, NewRez mailed Jenkins a letter telling him his loan was delinquent. He called NewRez and was bounced around and put on hold for hours every time he called. The defendants also falsely published a notice of the loan in default in the local newspaper, according to the suit.
Jenkins claims the defendants' actions were willful, wanton and malicious.
Jenkins is seeking compensatory and punitive damages. He is represented by Thomas H. Peyton of Peyton Law Firm in Nitro.
The case is assigned to Circuit Judge Carrie Webster.
Kanawha Circuit Court case number: 23-C-465