CFPB settles with servicer over TILA, RESPA violations

The Consumer Financial Protection Bureau has settled with BSI Financial Services, a mortgage servicer headquartered in Irving, Texas.

The Consumer Financial Protection Bureau has settled with BSI Financial Services, a mortgage servicer headquartered in Irving, Texas. BSI Financial Services is the operating name for Servis One, Inc.

The bureau said BSI violated the Consumer Financial Protection Act of 2010, the Real Estate Settlement Procedures Act, or the Truth in Lending Act in a number of ways.

The company allegedly  used incomplete or inaccurate loss mitigation in handling mortgage servicing transfers. This resulted in failures to recognize transferred mortgage loans with pending loss mitigation applications, in-process loan modifications, and permanent loan modifications, the bureau said. It also did this with incomplete or inaccurate escrow information, resulting in untimely escrow disbursements.

BSI inadequately supervised service providers, resulting in untimely escrow disbursements to pay borrowers’ property taxes and homeowners’ insurance premiums.

It failed to promptly enter interest rate adjustment loan data for adjustable rate mortgage loans into its servicing system, resulting in monthly statements sent to consumers that sought to collect inaccurate principal and interest payments.

Additionally, BSI maintained an inadequate document management system that prevented BSI’s personnel or consumers from readily obtaining accurate information about mortgage loans.

BSI must, among other provisions, pay a civil money penalty of $200,000 and pay restitution estimated to be at least $36,500.

The company must establish and maintain a comprehensive data integrity program to ensure the accuracy, integrity, and completeness of the data for loans that it services. It must also implement an information technology plan to ensure its systems are appropriate to the nature, size, complexity and scope of BSI’s operations.