The Payoff Statement That Nearly Killed the Deal

I’ve decided to start blogging my journey through the mortgage world for everyone to follow along. Beginning this new career path has been fascinating because the real-world examples and case-based knowledge simply aren’t widely available. My goal is to help people across the real estate industry identify where processes can improve, eliminate potential transaction setbacks, and expand overall industry knowledge through real, case-study-style examples from my personal origination experiences.

All personally identifying information will be removed. I’ll focus instead on qualifying details, transactional successes and failures, and communication lessons that can improve the overall home-buying experience. So, here we go!

The first deal started nearly three months after I was officially licensed. The client was W-2 employed with commission income. Some unique aspects of this deal included that the buyer was unmarried but lived with a long-time girlfriend with whom they shared financial accounts. I initially thought this might cause complications—especially since it was an FHA loan—but after receiving all the bank statements for both individuals, we decided not to include the girlfriend on the loan. Because they were unmarried and her credit and income weren’t necessary for approval, it made sense to keep her off the application.

The down payment was sourced from the buyer’s employer-held 401(k). To process the withdrawal, we needed the executed contract and loan estimate, which delayed things slightly. This is something that could easily be improved with a standardized checklist outlining which documents are required and when.

From an income standpoint, this client was in great shape. Four years of increasing commission income helped strengthen the application, and I was able to average the previous two years to determine qualifying income. When I checked the underwriter’s calculations, they were spot-on. For anyone unfamiliar with how to qualify different income types for government-backed loans, there are great online resources and even AI tools that can walk you through the process quickly.

Everything else was smooth. We collected all necessary documentation at the time of application, so there was minimal back-and-forth. We used a gift letter to verify the earnest money deposit from the girlfriend and attached the digital deposit receipt from the title company.

It felt like time stopped with this deal because of the loan servicer.

Then came the issue that every mortgage professional dreads: the payoff statement delay.

Upon receiving clear-to-close from the lender, we realized the payoff statement was running behind schedule. We were just three days from closing, and neither the seller nor the title company had received it. What followed was a hurricane-force effort from everyone involved to get that payoff in hand. The original request was submitted on the 22nd, yet it took 15 calendar days (12 business days) to receive the payoff.

The servicer—Shellpoint Mortgage Servicing (NewRez Mortgage LLC)—made it nearly impossible to reach anyone with decision-making authority. Every call dead-ended at the call center. No email addresses were available for escalation, and the team on the phones couldn’t or wouldn’t connect us with anyone who could help. To make matters worse, the loan being paid off was a commercial investment property loan, which likely contributed to the bottleneck.

This felt negligently malicious—an avoidable delay likely caused by poor internal organization and management. My warning to anyone reading: be extremely cautious when working with Shellpoint or NewRez. The inefficiency cost us time, stress, and nearly jeopardized the closing.

Fortunately, the agent on this deal was incredible. She negotiated a pre-closing occupancy agreement so the buyers didn’t have to cancel their move or lose their scheduled time off. In the end, everyone was happy, and the deal closed smoothly. On to the next one!