CFPB Accused BSI Financial Services Of Improperly Handling Mortgage Servicing Transfers
The CFPB announced Wednesday that it had concluded an investigation into BSI Financial Services. The agency found that BSI Financial Services had violated multiple federal laws over several years. As a result, the company agreed to pay a penalty of $200,000 and pay restitution estimated at least $36,500.
CFPB states that BSI Financial Services violated the Consumer Financial Protection Act of 2010. They also violated RESPA and or TILA at various points between 2012 and 2016.
A CFPB investigation found that BSI Financial Services improperly handled mortgage servicing transfers.
the CFPB also noted that BSI Financial Services failed to recognize that certain loans were already in loss mitigation proceedings.
The company also failed to recognize certain homeowners were in the process of receiving a loan modification or had already received a loan modification.
BSI also failed to review the loan data provided by prior servicers for accuracy between September 2012 and September 2014.
In addition, BSI did not have a fully automated method to enter loss mitigation information into its servicing system.
As a result, BSI did not recognize an unknown number of customers who were loan modification negotiations. Furthermore, the company failed to honor loss mitigation proceedings.
BSI did not properly maintain interest rate data received from previous mortgage servicers on thousands of ARM loans from September 2012 through May 2015.
CFPB also states BSI manually created interest rate adjustment tables based on information contained in the underlying mortgage documents it received from the previous servicer.
The company issued the following statement to Housingwire:
To read the full consent order, click here.