Consumer complaint received 2025-01-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: BSI Financial Holdings, Inc.
State: CA

Complaint narrative:
house address : XXXX XXXX XXXX XXXX XXXX, TX, XXXX To Whom It May Concern, I am writing to formally request the Consumer Financial Protection Bureau 's ( CFPB ) intervention regarding an excessive and unreasonable prepayment penalty imposed on my mortgage by BSI Financial Services. This penalty not only contradicts the terms I was informed of but also places an undue financial burden on me as an XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Background : Mortgage Payment History : I have diligently and fully paid my mortgage on time for XXXX consecutive months. My original understanding of the loan terms, as explained to me at origination, was that the prepayment penalty would follow a XXXX structure : 3 % of the original loan amount if paid off within the first 12 months, 2 % if paid off within 24 months, and 1 % if paid off between XXXX and 36 months. 
Current Situation : I am a XXXX  XXXX  and XXXX XXXX servicemember XXXX stationed permanently in California. This property in Texas was purchased as my primary residence during my time in Texas. Due to my relocation to California for XXXX  XXXX, I am no longer able to reside in the home. The monthly cost of my mortgage, including escrow, is over $ XXXX amount unsustainable on my military income. I have no choice but to sell the home to avoid financial ruin, including the risk of deferring payments or resorting to a short sale. 

Excessive Prepayment Penalty : I was quoted a prepayment penalty of $ XXXX amount that is excessive, unjustifiable, and inconsistent with the loan terms. With only XXXX months left to reach the XXXX threshold, I expected a penalty capped at 1 % of the original loan amount, approximately {$8000.00}. The {$12000.00} penalty is therefore not only excessive but also contradicts the structure I was clearly informed of when the loan was originated. 

Violation of California Protections : As a California resident actively serving in the military, I should be entitled to protections under California law, including potential eligibility for a deferment of my mortgage obligations. I requested a deferment from XXXX, but my request was outright denied without any explanation or justification. This refusal adds to the financial and emotional distress caused by their actions. 

Issues of Concern : Lack of Transparency and Deceptive Practices : I contacted BSI Financial Services to request a waiver or correction of the penalty amount. I was initially told that BSI would consult the lender on my behalf. However, I later learned no such contact was made, and BSI unilaterally denied my request. As the loan servicer, BSI has no right to make such determinations on behalf of the lender without proper consultation or transparency. 

Unprofessional and Disrespectful Conduct : When I disclosed my military status and explained that I was being stationed in California for XXXX XXXX, I was openly mocked and laughed at by BSI representatives. This behavior is deeply unprofessional and offensive, especially considering the sacrifices military personnel make in service to their country. 

Unreasonable Financial Harm : Selling my property is a last resort to avoid financial hardship. However, the exorbitant penalty directly undermines this solution, leaving me with little to no equity after the sale. As a servicemember, my financial stability is further threatened, and I am unable to fulfill my duties without undue stress and burden. 

Request for Action : I respectfully request the CFPB to investigate this matter and advocate for the following : Waiver of the Prepayment Penalty : Given my military status and relocation orders, this penalty should be waived entirely to avoid further financial harm. 
Correction of Miscalculated Penalty Amount : If a waiver can not be achieved, the penalty should be reduced to reflect the agreed-upon XXXX structure. 
Accountability for BSI Financial Services : The unprofessional conduct, lack of transparency, and potential misrepresentation of terms warrant further investigation.

Enforcement of California Resident Protections : As a California resident, I should be entitled to the states legal protections for military personnel, including mortgage deferment. BSIs denial without explanation is unacceptable. 
This situation has placed me in an untenable position as I prepare to serve my country in XXXX XXXX. I trust the CFPB will act swiftly to ensure I am treated fairly and protected from predatory practices. 

Thank you for your attention to this matter. Please feel free to contact me directly for any further information or documentation.

Company response to consumer: Closed with explanation