Consumer complaint received 2025-11-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC)
State: MO

Complaint narrative:
XX/XX/XXXX CONSUMER PROTECTION BUREAU XXXX XXXX XXXX XXXX XXXX XXXX ) /COMMUNITY ( LOAN SERVICING ) /BAYVIEW ( LOAN SERVICING ) Pursuant to Bayview ( loan servicing ), community ( loan servicing ) LLC XXXX and silver hill capital LLC ( loan servicing ) response of XX/XX/XXXX, to the Consumer Financial Protection Bureau on behalf of XXXX and XXXX 's XXXX ( XXXX ) loan number XXXX regulatory case number : XXXX. 
Re : Demand for Documentation and Compliance with Settlement Terms Loan No. : XXXX| Regulatory Case No. : XXXX Pursuant to the XX/XX/XXXX response submitted by Bayview ( loan servicing ), Community ( loan servicing ), LLC, and Silver Hill Capital , LLC ( collectively, ( loan servicing ) ) to the Consumer Financial Protection Bureau regarding the above-referenced loan, I must formally object to the continued submission of documents that misrepresent material facts. Based on the pattern of conduct and the content of these submissions, it is reasonable to conclude that ( loan servicing ) is engaged in a deliberate effort to mislead and obscure the truth. 
XX/XX/XXXX, response explicitly acknowledges the seizure of fiduciary escrow funds under a pretense that directly contradicts the terms of the executed settlement agreement. The attempt to claim exemption from consumer protection statutesbased solely on the loans classificationignores the fact that the borrower is an individual and disregards applicable Kansas statutes governing fiduciary obligations and the misuse of escrow funds, including potential civil and criminal consequences. 
Furthermore, your XX/XX/XXXX, letter states attached : Please be informed that the escrow funds were applied directly to the outstanding loan balance to resolve a total debt payoff. There is no evidence that escrow funds were diverted for unrelated purposes or for any form of enrichment. This assertion is categorically disingenuous. It ignores the existence of a fully executed settlement agreement that specified a final payoff amount of $ XXXXan amount that was satisfied in full via wire transfer on XX/XX/XXXX. The escrow funds in question were not disclosed, not authorized for seizure, and were not part of the agreed payoff structure. Your retroactive application of escrow fundswithout notice, consent, or contractual basisconstitutes a breach of fiduciary duty and a violation of Kansas law. The absence of diversion to unrelated purposes does not absolve you of liability for unauthorized enrichment and concealment of fiduciary activity. 
In a final effort to resolve this matter without initiating legal proceedings, we demand that ( loan servicing ) produce documentation that demonstrates its actions were lawful and contractually authorized under compliance to the Settlement Terms that prevail over any unwritten or previous agreements. Specifically, provide the following : 1. Proof within the executed settlement agreement that ( loan servicing ) was entitled to seize escrow funds without borrower authorization or notification.

2. A copy of any written notice provided to the borrower explicitly stating the intent to seize fiduciary escrow funds, along with documentation of the borrowers express authorization for such action. 
XXXX. Citation to any provision within the executed settlement agreement that permits ( loan servicing ) to divert escrow fundsoriginally designated for payment of real estate taxesfor its own benefit.

4. Confirmation that Paragraph 8 of the Reservation of Rights Agreement, executed by both parties, constitutes the sole and complete agreement between the parties, superseding all prior understandings, and that no modification is valid absent written consent by both parties. 
If ( loan servicing ) fails to provide the above documentation within ten ( 10 ) business days, we will proceed with a final demand for the return of the escrow balance, statutory interest, and applicable penalties. Under this statute ( loan servicing )
must reimburse ( surface ) legal fees. Absent full resolution, we are prepared to initiate legal action in the State of Kansas for breach of fiduciary duty, misappropriation of escrow funds, and violations of Kansas XXXX XXXX and others that may apply. 
This is a final opportunity to resolve the matter without litigation. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation