Consumer complaint received 2025-07-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: BSI Financial Holdings, Inc.
State: SC

Complaint narrative:
I would like to submit the following information as a formal complaint against BSI Financial Services ( mortgage servicer ). 

I have 20 years experience in the mortgage industry, and the issues below are violations of investor regulations. 

In XX/XX/year> I submitted a request to have my home valued and PMI removed from my mortgage payment. This was completed, and I have been advised verbally that the PMI will be dropped based on the new value of my home. I was not given the new value, and was told that it would have to be requested that this be provided. A mortgage servicer is required to provide any valuation ordered and paid for by the borrower. 

For the main point of my complaint- I submitted the full appraisal fee of {$450.00} as the request form stated this was required in the state of South Carolina ( versus the {$190.00} for a XXXX XXXX XXXX XXXX XXXX XXXX The check was cashed and cleared my account on XX/XX/year>. The BSI Financial PMI Removal request form is attached with the requirement for the {$450.00} payment highlighted and a copy of my cleared check. 

I was then contacted by a Real Estate Broker out of Georgia who was to complete this valuation. As someone who has worked in the mortgage industry for 20 years ( 13 years of which involves working with investors and quality control of mortgage loans ), I know that a Real Estate Broker does not perform full property appraisals. A broker can perform a Brokers Priced Opinion. I confirmed with this broker that she was not also a licensed Real Estate Appraiser. 

The work that goes into a full appraisal is different and less detailed than that of a Brokers Priced Opinion. As such, a BPO costs much less than a full appraisal. 

Since it was stated on the PMI Removal Request form from BSI Financial that a full appraisal fee was required for South Carolina properties, I submitted {$450.00} for a full appraisal to be ordered. When it was determined that a full appraisal was not completed, I requested either one be ordered, or I be refunded the difference in cost of a BPO versus the full appraisal.

I was then informed that XXXX XXXX  ( the investor for my mortgage loan ) required the full appraisal fee of {$450.00}, and XXXX XXXX then subsequently ordered the BPO instead of the appraisal. This information is not accurate as you will see from the XXXX XXXX  Servicing Guide copy provided. The information states that a BPO should be ordered unless the servicer ( BSI ) determines that an appraisal is required by law for a particular state. A full appraisal is not required for South Carolina properties in order to drop PMI from a mortgage payment as evidenced that a Brokers Priced Opinion was completed. 

Based on the fact that a full appraisal is not needed for South Carolina properties, the BSI Financial PMI Termination form is fraudulently collecting a full appraisal fee for South Carolina properties and ordering only BPO valuations thus, essentially scamming borrowers out of money that is not needed for the service provided. 

When I questioned this practice and advised that I am a XXXX mortgage veteran who is fully aware of XXXX XXXX guidelines , I was told that I was free to calXXXX XXXX XXXX  myself and that BSI would have no further discussion with me on this topic. I requested the following information be provided as evidence for the requirement of the a full appraisal fee was required for a Brokers Priced Opinion : the invoice for the service provided so that I could see the fee that was actually paid to the provider the guidance from XXXX XXXXXXXX that showed, and/or the information showing a full appraisal was required by law for South Carolina properties . I was denied all of this information as well. 

This is a formal complaint and request that this be fully investigated. Other borrowers who are not employed in the mortgage industry would not be aware of the difference between a Brokers Priced Opinion and a full appraisal. This indicates that BSI Financial is, and has, collected fees for services not provided. 

At this time, I request that the difference in the cost be refunded. While the BSI PMI Removal request form states that the fee is non-refundable, this also states that this is due to any question in value. I have not questioned the valuation. I am concerned with the amount that was collected based on the service that was provided.

Company response to consumer: Closed with explanation