Consumer complaint received 2026-06-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: BMO BANK NATIONAL ASSOCIATION
State: CA

Complaint narrative:
Title : Urgent Escalation : Systemic Servicing Failures, Regulatory Non-Compliance, and Bad-Faith Obstruction of Portfolio-Level Loss Mitigation. Executive Summary : I am a legacy " relationship banking '' client of XXXX XXXX XXXX XXXX XXXX XXXX ) whose portfolio was acquired by BMO. Since the transition, BMO has engaged in a pattern of obstructive, non-compliant servicing, including repetitive, duplicative demands for redundant documentation that BMO already possesses. This " paperwork endurance test '' is a deliberate administrative barrier designed to suppress my right to loss mitigation evaluation under 12 CFR 1024.41. Despite XXXX years of good-faith attempts to resolve this, BMO continues to ignore the historical relationship-based underwriting model established by XXXX and ratified in my XXXX refinances, while ignoring court-ordered evidence of hardship for the XXXX property. List of Affected Accounts : XXXX. Primary Residence : Loan # XXXX / HELOC XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Rental Property : Loan XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Rental Property : Loan XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. HELOC XXXX XXXX XXXX XXXX XXXX XXXX XXXX Grievance Details & Violations : Failure of Operational Continuity ( OCC Merger Representation ) : BMO represented to the OCC ( Control No. XXXX ) that it achieved full systems integration and operational continuity. BMOs current refusal to honor the XXXX XXXX refinance termswhich were established without the excessive income documentation BMO now demandsproves that BMO has failed to integrate XXXX records as promised to federal regulators. * Breach of Relationship-Based Underwriting Continuity : As recently as XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX executed refinances for the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXespectively ) based on a 'relationship banking ' model that required no additional income or asset documentation. BMO, as the successor-in-interest, inherited these portfolios and the verified financial status of the borrower as established by the predecessor. However, BMO now systematically ignores this established underwriting history. Instead of honoring the relationship-based continuity promised during the merger, BMO imposes a cumulatively obstructive 'paperwork endurance test, ' requiring the borrower to submit XXXX pages of redundant financial, tax, and property data for every loss mitigation application. This sudden shift from a trusted, relationship-based underwriting model to a hostile, redundant, and automated data-dump requirementapplied repeatedly to the same assetsis not a 'reasonable diligence ' effort under 12 CFR 1024.41, but is a bad-faith administrative barrier designed to induce application expiration and force involuntary foreclosure. Violation of Reasonable Diligence ( 12 CFR 1024.41 ) : BMO/XXXX routinely demands XXXX pages of redundant documents every XXXX months while reviewing loan payment options. Requesting documents the bank already holds is not " reasonable diligence '' ; it is an abusive practice intended to force application expiration. Bad Faith Treatment of Portfolio Assets : These loans are " Portfolio '' assets ( as documented in the original Notes ). As the sole investor, BMO has full discretion to offer workouts based on asset-specific hardship. Demanding " global '' documentation for an asset-specific eviction ( XXXX ) while ignoring verified court-ordered eviction documents is an act of bad faith and a violation of the spirit of loss mitigation rules. Abusive Acts ( UDAAP ) : By making the process cumulatively more cumbersome each time, the servicer creates an environment where foreclosure becomes the inevitable, forced outcome for the borrower. * Failure to Facilitate Executive Credit and Risk Review : Recognizing the systemic failure of the automated servicing channel, we formally requested an executive-level credit review on XX/XX/XXXX. This request was not a routine 'appeal ' of a servicing decision, but a strategic outreach to BMOs senior credit and risk leadership to assess a portfolio-level resolutionsuch as a bridge accommodation or interest-only structurethat would stabilize our multi-loan relationship. Despite our clear request to bypass low-level servicing channels and engage with credit leadership, BMO improperly routed this correspondence to their standard Customer Advocacy department XXXX This failure to engage XXXX credit decision-makers, coupled with the banks refusal to consider our relationship as a consolidated risk profile, confirms that BMO lacks a functioning internal mechanism for handling complex, multi-asset portfolio clients. This denial of a substantive XXXX review further demonstrates the bank 's intent to treat this relationship with an adversarial, fragmented approach rather than the prudent risk management expected of a national banking association. * Bad-Faith Obstruction of Asset-Specific Hardship ( XXXX XXXX ) : Regarding the XXXX property ( Loan No. XXXX ), I have provided verified, court-authorized evidence of a tenant eviction judgment and prolonged rent default. BMO has acknowledged the hardship but continues to demand a comprehensive 'global ' financial document dumpincluding full tax returns, property-wide statements, and XXXX & XXXX for all unrelated assetsas a condition for loss mitigation evaluation. This demand is a bad-faith barrier. As this is a Portfolio Loan held by BMO as the sole investor, the bank possesses the discretionary authority to evaluate the specific, documented income loss from this singular asset. Requiring 'global ' documentation in the face of a judicial eviction order is an unnecessary and abusive administrative hurdle that ignores the documented, acute nature of the loss and functions only to delay a necessary credit accommodation. 12 CFR 1024.35 ( b ) ( 8 ) ( Notice of Error - Servicing Error ) : BMO failed to accurately migrate and honor the " Portfolio '' designation and the XXXX relationship-based underwriting status established by the predecessor institution, XXXX XXXX XXXX XXXX XXXX This failure to maintain accurate records of the accounts status is a systemic servicing error. 12 CFR 1026.41 ( Periodic Statements - TILA/Reg Z ) : The periodic statements provided by BMO fail to accurately reflect the true status of the inherited portfolio loans, creating confusion and inhibiting the borrowers ability to manage the accounts, in violation of Truth in Lending Act disclosure requirements.

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