Consumer complaint received 2025-12-31 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: MIDFIRST BANK
State: CA

Complaint narrative:
I submit this complaint against XXXX XXXX, a division of MidFirst Bank, regarding serious mortgage servicing violations involving Mortgage Loan No. XXXX. 

This complaint is based on XXXX own transaction history and payoff statement, which demonstrate material accounting failures, opaque ledger practices, and internal contradictions resulting in {$100000.00} in borrower funds being received but not properly applied. 

I. DOCUMENTS SUPPORTING THIS COMPLAINT This complaint relies on the following XXXXgenerated records : - Exhibit A Transaction History Shows multiple payments placed into unapplied, held, or suspense categories without explanation or reconciliation. 

- Exhibit B Payoff Statement dated XX/XX/year> Reflects a payoff amount and unpaid principal balance that do not credit or account for the {$100000.00} reflected as held or unused funds. 

These documents contradict each other and establish recordkeeping failures under Regulation X. 

XXXX. FAILURE TO PROMPTLY CREDIT PAYMENTS 12 CFR 1024.38 ( c ) ( XXXX ) XXXX received substantial borrower funds yet failed to promptly credit them to principal, interest, or escrow. Instead, funds were diverted into internal holding categories without lawful justification. 

This practice : - Artificially inflates the unpaid principal balance- Causes improper interest accrual - Exposes the borrower to wrongful default and enforcement risk XXXX. FAILURE TO MAINTAIN ACCURATE AND ACCESSIBLE SERVICING RECORDS 12 CFR 1024.38 ( c ) ( XXXX ) Midlands accounting ledgers are not consumer-readable, auditable, or reconcilable : - Ledger entries rely on internal codes without explanation - Credits and debits are not logically linked - Suspense balances appear without triggering events - Large lump-sum payments are not traced to final application A reasonable consumer or regulator can not independently verify how payments were applied. 

IV. PAYOFF STATEMENT CONTRADICTIONS ( EXHIBIT B ) The payoff statement dated XX/XX/year> reflects : - An unpaid principal balance exceeding {$480000.00} - Continuing interest charges despite significant borrower payments - A reference to unused funds in a holding account without quantification - A payoff figure that fails to credit the {$100000.00} held by XXXX XXXX can not simultaneously acknowledge unused borrower funds and calculate a payoff that ignores them. 

V. SERVICING TRANSFER FAILURES 12 CFR 1024.38 ( b ) ( XXXX ) This loan was recently transferred to XXXX XXXX. XXXX failed to demonstrate : - Proper reconciliation of transferred records - Identification and resolution of suspense balances - Validation of prior servicer payment data These failures indicate deficient servicing transfer controls. 

VI. FAILURE TO ADEQUATELY RESPOND TO NOTICE OF ERROR 12 CFR 1024.35 The borrower submitted a Qualified Written Request and Notice of Servicing Error. XXXX has not produced a clear, document-supported explanation reconciling the {$100000.00} or correcting the errors reflected in its own records. 

XXXX. CONSUMER HARM As a result of XXXX practices : - Six-figure borrower funds remain unapplied - Loan balances appear materially inaccurate - Interest and fees may have been improperly assessed - The borrower faces ongoing risk of adverse credit reporting and enforcement actions XXXX. REQUESTED CFPB ACTION I respectfully request that the CFPB : XXXX. Require XXXX to perform a formal forensic audit of this loan XXXX. Compel production of a clear, reconciled, consumer-readable accounting ledger XXXX. Ensure immediate crediting of all unapplied funds and reversal of resulting fees XXXX Review whether Midlands accounting opacity reflects systemic servicing violations, particularly during loan transfers XXXX. CONCLUSION XXXX XXXX  own records demonstrate accounting opacity, internal inconsistency, and regulatory non-compliance. These practices undermine borrower protections and warrant regulatory intervention. 

Submitted by : XXXX XXXX XXXX XXXX XXXX, California Mortgage Loan No. : XXXX Attachments : Exhibit A Transaction History Exhibit B Payoff Statement dated XX/XX/year>

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation