The Consumer Financial Protection Bureau (CFPB) settled with BSI Financial Services — a mortgage servicer that had been hit with several violations.
The Irving, Texas-based company violated the Consumer Financial Protection Act of 2010, the Real Estate Settlement Procedures Act, or the Truth in Lending Act by handling mortgage servicing transfers with incomplete or inaccurate loss mitigation information. They also mishandled mortgage servicing transfers with incomplete or inaccurate escrow information resulting in untimely escrow disbursements.
Further, they did not adequately oversee service providers, resulting in untimely escrow disbursements to pay borrowers’ property taxes and homeowners’ insurance premiums. BSI also failed to promptly enter interest rate adjustment loan data for adjustable-rate mortgage loans into its servicing system. This resulted in BSI sending monthly statements to consumers that sought to collect inaccurate principal and interest payments.
Finally, they did not maintain an adequate document management system that prevented BSI’s personnel or consumers from readily obtaining accurate information about mortgage loans.
Under the terms of the settlement, BSI must pay a civil money penalty of $200,000 and pay restitution estimated to be at least $36,500. Additionally, it must establish a data integrity program to ensure the accuracy, integrity, and completeness of the data for loans that the company services. Also, BSI must implement an information technology plan to ensure its systems are appropriate given the nature, size, complexity, and scope of BSI’s operations.
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