Consumer complaint received 2026-04-01 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — Paying off the loan
Company: BSI Financial Holdings, Inc.
State: CA

Complaint narrative:
XXXX. INTRODUCTION AND PURPOSE OF THIS LETTER My name is XXXX XXXX. I am the principal of XXXX XXXX, XXXX, a borrower and property owner of an investment property located at XXXX XXXX XXXX, XXXX, Alaska. I am writing to the Consumer Financial Protection Bureau ( the 'Bureau XXXX ) to formally escalate and supplement my prior complaints against BSI Financial XXXX XXXX XXXX Mortgage XXXX XXXX and XXXX XXXX XXXX XXXX collectively, 'Respondents ' ). I submit this letter as a detailed cover letter accompanying my Formal Rebuttal to Payoff Demand, which is attached hereto as Attachment A ( 'Formal Rebuttal ' ). This letter is longer than a typical complaint submission because the matters at issue require the Bureau XXXX careful attention to a pattern of conduct not merely isolated errors that has resulted in systemic overcharges, deliberate misapplication of my payments, undisclosed fee extractions, and an imminent foreclosure threat based on a payoff amount I have documented to be arithmetically fraudulent. I respectfully request that the Bureau treat this submission as an urgent escalation requiring immediate intervention, given that foreclosure proceedings may be imminent and every day of delay results in additional financial harm to me. XXXX. SUMMARY OF THE DISPUTE AT A GLANCE For the Bureau XXXX quick reference, the following table summarizes the core figures in dispute : CORE DISPUTE SUMMARY Original Gross Loan Amount ( XXXX ) {$310000.00} XXXX XXXX NEVER DISBURSED to Borrower {$32000.00} Actual Funded Principal Received by Borrower {$280000.00} Principal After {$15000.00} XX/XX/XXXX Reduction Wire {$260000.00} BSI XXXX Payoff Demand ( XX/XX/XXXX ) DISPUTED {$270000.00} BSI Daily Interest Rate Applied $ XXXX on {$290000.00} Correct Daily Interest Rate ( XXXX funded {$260000.00} ) ~ $ XXXX Daily Interest Overcharge on XXXX XXXX XXXX $ XXXX Total Excess Interest Charged ( 209 days ) ~ {$2000.00} Fees Assessed Then 'Waived ' by BSI ( Admission of Error ) {$17000.00} Confirmed Minimum Damages to Borrower {$32000.00} XXXX. FACTUAL BACKGROUND A. The Loan Structure and the Undisbursed Holdback In or around XXXX, I obtained a commercial investment property loan originated by XXXX Mortgage XXXX in the gross amount of {$310000.00}, secured by my property at XXXX XXXX XXXX, XXXX, Alaska. Of this total, {$32000.00} was designated as a rehabilitation/repair holdback ( 'Rehab Holdback ' ) funds that were to remain with LendSure/BSI and be disbursed only upon completion of qualifying repair draws. The actual cash advanced to me as the borrower was {$280000.00}. At no point was the full {$32000.00} holdback disbursed to me. I have never received, controlled, or had access to those funds. Yet from the very first day of the loan, LendSure and its successor servicer BSI Financial Services calculated my daily interest obligation based on the gross {$310000.00} later modified to {$290000.00} after a {$15000.00} principal reduction wire I made in XX/XX/XXXX a balance that includes the {$32000.00} I never received. This is the foundational overcharge at the heart of my complaint. B. The {$15000.00} Principal Reduction Wire and Its Misapplication In XX/XX/XXXX, I wired {$15000.00} to BSI as a contractually required principal reduction, negotiated as a condition of the loan extension approved by XXXX. BSI did not apply this payment to principal as required. Instead, BSI ran the payment through what it describes as a 'standard waterfall application, ' diverting {$6100.00} of those funds to undisclosed fees and charges fees that BSI has since partially reversed after I filed formal complaints. For XXXX full months, from XX/XX/XXXX through XX/XX/XXXX, my principal balance remained inflated by {$15000.00}, generating excess daily interest on that {$15000.00} for every day of that period. BSI reversed the misapplication only on XX/XX/XXXX precisely XXXX days after I filed a formal Notice of Error and complaint with the CFPB. XXXX BSI XXXX XX/XX/XXXX and XX/XX/XXXX Correspondence A Record of Evasion Following the filing of my prior CFPB complaints, BSI responded with XXXX letters : XXXX dated XX/XX/XXXX, and XXXX dated XX/XX/XXXX. Rather than correcting the identified accounting defects, BSI XXXX letters have served primarily to : ( i ) defend the indefensible specifically, BSI continues to charge interest on the {$32000.00} phantom holdback while simultaneously acknowledging in the same payoff statement that these funds were never disbursed ; ( ii ) deflect responsibility BSI directs me to LendSure for holdback draw history questions, while XXXX directs me back to BSI ; and ( iii ) issue veiled threats BSI XXXX XX/XX/XXXX letter invokes the potential for 10 % late fees and characterizes my loan as XXXX, past maturity, ' at a time when the payoff amount itself is under formal dispute. Of particular concern is BSI XXXX XX/XX/XXXX statement that it declines to 'audit ' or re-examine the payoff calculation. A licensed servicer collecting nearly {$280000.00} on a disputed debt can not lawfully refuse to audit that debt upon documented challenge. BSI XXXX refusal, combined with the circular deflection between it and XXXX, is itself strong evidence of the XXXX pattern the Bureau is empowered to address. IV. SPECIFIC RELIEF REQUESTED WHAT I AM ASKING THE BUREAU TO COMPEL The Bureau routinely asks complainants to specify the resolution they are seeking. I want to be precise and complete in my answer. I am requesting XXXX distinct forms of relief from the Bureau, corresponding to the XXXX principal mechanisms I intend to pursue simultaneously : ( PLEASE SEE REQUESTED RESOLUTION NO. XXXX THRU XXXX and others,

Company response to consumer: Closed with explanation