Consumer complaint received 2022-09-16
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: BSI Financial Holdings, Inc. (PA)

-On XX/XX/XXXX my home, XXXX XXXX XXXX, XXXX PA XXXX was listed for sale. 
-On XX/XX/XXXX I received an offer from the buyers. 
-On XX/XX/XXXX my mortgage company received a payment of {$13000.00} from the PHAF ( Pennsylvania Homeowners Assitance Fund ), bringing my mortgage current and covering past due payments from XX/XX/XXXX to XX/XX/XXXX. My monthly mortgage payments include principal, taxes, and insurance. 
-On XX/XX/XXXX I requested a payoff statement from BSI Financial dba XXXX XXXX XXXX and received it on XX/XX/XXXX. 
-On XX/XX/XXXX The payoff ( attached ) stated that I had an Unpaid Principal Balance of {$190000.00} and an escrow balance of {$12000.00}. I immediately disputed the escrow balance via email sent to XXXX, XXXX, and XXXX -On XX/XX/XXXX I called BSI financial and spoke to XXXX who confirmed that the escrow amount on the payoff statement was incorrect, it should be a much less amount or no balance at all and he would reach out to his team to clarify the correct amount. 
-On XX/XX/XXXX I received a response from PayOff stating " It looks like this amount is forced place, homeowners, insurance and taxes. I have emailed our escrow team to see if this is correct and I will let you know when I find out more. I will flag this email to make sure I look into it and respond back to you as well! '' I followed up with an email to the same email address stating, " What exactly do you mean by forced place homeowners insurance and taxes? I need to see a breakdown of exactly what the {$13000.00} was applied to and what the balances are as of today. '' I never received a response back. 
-On XX/XX/XXXX my real estate agent also attempted to receive an answer regarding the escrow balance from BSI by contacting mortgage services at XXXX. 
XXXX XX/XX/XXXX I received an email from the PayOff Specialist stating, '' After reviewing your loan, Yes I do show the HAF program funds being received. Your loan is current, and due for XX/XX/XXXX. You can see this outlined on page 1 of the Payoff. I have ordered a pay history ( see attached ) to be sent to you via email as well, showing all of the escrow disbursements made from your loan. Once you have this, if you still disagree with the current negative balance on your loan, or any of the disbursements, I strongly recommend calling in to our customer care at XXXX to discuss this. Our review shows all of the balances as accurate, and no amended/adjusted PO quote will be done/provided. If you intend to pay off your loan, the amount we sent is what is due. '' XXXX XX/XX/XXXX until XX/XX/XXXX, I called BSI Financial Services requesting assistance with the escrow balance on my PayOff statement and no one was able to provide me with an understanding or a statement of what was paid with the {$12000.00}. escrow balance, or explain why this balance was owed if my mortgage was current prior to the sale of the home on XX/XX/XXXX. 
XXXX XX/XX/XXXX settlement was made and the house was sold. I paid the {$12000.00} escrow balance at closing and continued to dispute with BSIXXXX XXXX  XXXX that this was incorrect and I was owed a refund for the overpayment at closing. ( see attached XXXXXXXX XXXX ) -On XX/XX/XXXX I emailed XXXX stating, " I need a breakdown of what exactly has been paid with the XXXX escrow account. I am aware that the homeowners insurance increased and the amount paid from the escrow account was {$2600.00}. I need to know exactly what was paid besides the homeowners insurance and how you arrived to the escrow balance on the payoff. I have requested this information several times from customer service and again from you. The transaction history statement I received from BSI does not specify which amounts were allocated to taxes and insurance. 
The PAHAF ( {$13000.00} ) grant paid mortgage, tax, insurance payments from XX/XX/XXXX to XX/XX/XXXX. The amount paid was the agreed amount to bring my mortgage current. It is extremely important that I also have a clear understanding of what exactly the grant funds covered as they requested and paid the exact amount that would pay to bring my mortgage current. Again, the documents I received from BSI/XXXX Mortgage group are not helpful and do not explain which of the escrowed payments applied to taxes and insurance. I do not want to continue feeling left in the dark regarding this. It has been frustrating enough not getting help from your customer service department. '' -On XX/XX/XXXX I emailed, XXXX, XXXX, XXXX, and XXXX, stating, " It's been 10 days since I last reached out to you about this and I have yet to receive a response or help from customer service. I expect the breakdown of what the {$13000.00} HAF payment covered from XX/XX/XXXX to XX/XX/XXXX and what the {$12000.00} taxes and insurance escrow balance paid. As I mentioned in my previous email, the amount paid by the HAF program was the agreed amount to bring my mortgage current. BSI/XXXX XXXX  did not pay my taxes on my 2 lots in XXXX and I have proof of this negligence from XXXX XXXX XXXX I need to see the breakdown and proof of payments by end of the day today. I've been more than patient. I want what is owed to me. According to the Consumer Financial Protection Bureau, BSI has a recurring history of violating the Consumer Financial Protection Act of XXXX, the Real Estate Settlement Procedures Act, and the Truth in Lending Act. My next step is to contact my attorney and CFPB regarding BSI financialXXXX XXXX XXXX . 
-On XX/XX/XXXX I finally received a response from XXXX stating, " XXXX XXXX there is nothing that I can do for you. I have the Managers at BSI working on this. I have asked numerous times for answers. I do not have access to the XXXX XXXX at BSI. '' -On XX/XX/XXXX I responded, " This is unacceptable. This is extremely unprofessional of the Managers at BSI. They need to contact me today. '' On XX/XX/XXXX I received an annual escrow statement letter from XXXX ( attached ) which states that on XX/XX/XXXX " YOUR ESCROW SURPLUS IS {$2700.00} ''. 
On XX/XX/XXXX I received an email from, XXXX, CC 'd, XXXX, XXXX, and XXXX, stating : " I will be addressing your questions regarding the taxes. I have included @ XXXX in this communication so he is able to break down how the HAAF funds were applied. 
Taxes : I understand it was your request for BSI to provide you with receipts for the taxes paid. Unfortunately, we do not receive receipts from the tax office. We use the payment history screen from their website to verify and validate payments due and payments received. Going through the payments made, there were taxes due, and we made the payment, which arrived at the Delaware County Tax Claim Bureau on XX/XX/XXXX. The tracking # for this payment is XXXX. The taxes paid were for XXXX and XXXX for parcel # XXXX and Parcel # XXXX. 
We did further research, and it seems that our tax vendor did not set the tax lines up accurately when the loan was boarded into our system. We were able to verify that there were some issues with 2 parcels having the taxes paid timely ( this loan had 9 tax lines reflecting 3 identical parcel # s ) This has since then been corrected and updated. Because we were being charged penalties and now that this oversight was discovered our vendor has since then reimbursed us for the penalties incurred and paid by BSI. 
-On XX/XX/XXXX I received an email from XXXX stating, " Attached is a payment history for your account reflecting the application of HAF funds effective XX/XX/XXXX in the amount of {$13000.00}. ( See attached Statement ) The attached statement states that on XX/XX/XXXX I owed an escrow balance of - {$6100.00}. 
-On XX/XX/XXXX I responded to stating, " The payoff delivered to me on XX/XX/XXXX has the escrow balance at {$12000.00} which I paid on XX/XX/XXXX. The statement attached states that on XX/XX/XXXX the escrow balance was - {$6100.00} and on XX/XX/XXXX {$4400.00} from the HAF was applied to the - {$6100.00}. Am I reading this correctly? This basic math would put the escrow balance at- {$1600.00}. Please advise how you all arrived at - {$12000.00}. Look, we all know BSI has a recent history of violating the Consumer Financial Protection Act of XXXX, the Real Estate Settlement Procedures Act, and the Truth in Lending Act. I don't want this to be dragged out any further than it has to be. 
-On XX/XX/XXXX, A portion of the HAF {$13000.00} funds was applied to the negative escrow balance of - {$6100.00}. The amount applied was {$4400.00} which would leave a negative escrow balance of - {$1600.00} however, the payoff statement I received on XX/XX/XXXX stated that I had a negative {$12000.00} escrow balance which I have proof in statements attached below that this is not true and BSI Financial XXXX XXXX  XXXX owes me {$10000.00} now that I have paid this {$12000.00} escrow balance at settlement on XX/XX/XXXX.