Consumer complaint received 2020-08-20
Company: BSI Financial Holdings, Inc.
State: LA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
My loan case was originated with FHA prior to XX/XX/XXXX, a 30 year fixed loan with >90 % LTV. For such loans, they are eligible for MIP removal at 78 % LTV if in good standing after 5 years. On XX/XX/XXXX I made a substantial payment toward principal of the loan in order to achieve 78 % LTV. I noticed in early XXXX that they had not correctly applied this amount toward principal, but had left it as " unapplied ''. I called customer service on XX/XX/XXXX in order to have this unapplied balance applied to the principal of the loan, and confirmed that the LTV would still be below 78 %. The customer service representative informed me that I needed to submit a request in writing to remove the MIP, which I did the same day. I have a copy of this letter available upon request. 

In XX/XX/XXXX, I noticed that my loan servicer had still made a disbursement to MIP, so I called to understand why this had happened. The customer service employee informed me that the loan was not eligible because it is an FHA loan. I informed them of the XX/XX/XXXX changes to FHA MIP requirements ( available on the FHA website, top search result for " FHA MIP '' ), and they said they would have to review the case and would call me back. I never received a call back. 

In XX/XX/XXXX, I noticed another disbursement to MIP, so called my loan servicer again. This was largely the same conversation as happened before. The person was confused, did not know what MIP was, but read from a chat conversation they were having with someone involved in PMI XXXX, describing the rules for PMI removal. I informed the individual of the distinction between PMI and MIP and the different rules that apply to FHA loans, and the different eligibility rules depending on when the case was originated. I was told I would receive a call back later in the evening ( Friday ) or on Monday. I never received a call back. 

In XX/XX/XXXX, another disbursement was made to MIP, and I received a letter on XX/XX/XXXX from the PMI Processor, informing me that " Your loan is an FHA loan and per FHA guidelines the premiums will not be removed until the Final MIP date is met. The Final MIP date is set directly by the FHA. Your loan shows the final MIP date as XX/XX/XXXX once the last MIP payment has been made the process to remove the FHA will be completed. '' This answer is an incorrect interpretation of the FHA MIP rules. On the letter, there is a call-back number for any questions or clarifications, which is the standard customer service number. 

I called today ( XX/XX/XXXX ) and spoke with another customer service representative, having pretty much the exact conversations we have been having about MIP removal, but updated describing the various other times I have called and been promised calls back but not received them. This individual was able to get in touch with someone in regards to PMI processing, and delivered the same information as in the letter, that the loan is ineligible. I asked to escalate for further review and to speak with someone who would make the determination, because I believe the rules are not being interpreted correctly. The customer service representative requested what my source of information on the XX/XX/XXXX rule change was, and I directed them to the FHA website page. They said they were unable to get in touch with someone at this time who could discuss the details of my PMI, but that they would give me a call back. I asked how long it should take to get a determination and they said 24-48 hours. I told them I've heard that story too many times from them, and that I would like a direct callback number in order to resolve the issue in the case that they don't call me back in that amount of time. I was given the 1-800 number for customer service. I pressed about a direct number and was told none could be provided. 

This is the most pressing issue among many others with this servicer. My loan was transferred to them in early XXXX, and immediately I noticed on their website how little information is available concerning the loan details and history. We made a change to our flood insurance coverage in XX/XX/XXXX and I emailed the new documents to the servicer, but never received any confirmation of receipt or changes that had been made. In fact, I've never received a single response to an email I've sent them in regards to anything, even an acknowledgement of receipt. The change in flood insurance significantly reduced our annual premium, so an escrow analysis should have occurred. I planned to request this if they did not initiate it themselves in short order after receiving the documents, but a further escrow analysis will be required for the MIP removal. I was assuming they would be resolved around the same time and I would save them the hassle of doing XXXX separate escrow analyses. In the XXXX call to customer service I did ask them to please check the insurance information to verify that they had the latest on file and did not require additional changes to the declarations page XXXX there had been issues when the servicer transfer occurred earlier in the year ). They confirmed that all of the information looked good and that they had the latest documents. However when I click to view details of the insurance payees and real estate tax payees on their site, those fields are blank. HUD is the only payee for which information is available. Overall the website is entirely lacking in transparency and the customer 's ability to manage the details of their loan and verify basic information. If the company 's answer is that you can always call customer service for any clarification of details, my experience is that those capabilities are similarly underwhelming. I'm struggling to find a way to hold them accountable or seek any recourse for their ineptitude.

Company response to consumer: Closed with explanation