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:
Subject : Formal Complaint Regarding Loan Servicing Misconduct, Denial of Rights, and Discriminatory Treatment by BSI Financial Services Dear Consumer Financial Protection Bureau, I am filing this formal complaint against BSI Financial Services for denying my requests without proper consultation with the lender, withholding lender contact information, and engaging in unprofessional and discriminatory behavior. These actions have violated my rights as a borrower under federal and state laws and caused unnecessary hardship as I prepare for XXXX military XXXX  and relocation. 

Background and Issues : 1. Denial of Requests Without Lender Involvement I submitted requests to BSI Financial Services, including : A waiver or correction of an excessive prepayment penalty. 
Information regarding mortgage deferment due to my XXXX military status and relocation to California. 
BSI informed me, through a representative named XXXX, that all my requests were denied based solely on internal decisions made by BSI, without any consultation with the lender. This refusal to involve the lender directly violates my rights under the Real Estate Settlement Procedures Act ( RESPA ) ( 12 U.S.C. 2605 ( e ) ), which mandates transparency and borrower access to critical loan information. 

2. Refusal to Provide Lender Information Despite multiple requests, BSI has refused to provide the lender 's contact information or evidence of communication with the lender. Under RESPA, I am entitled to receive : The name, address, and contact details of the lender ( loan owner ). 
A detailed explanation of how decisions affecting my loan were made. 
Failure to provide this information violates RESPA 's provisions for borrower transparency and timely response requirements. 

3. Excessive Prepayment Penalty I was quoted a {$12000.00} prepayment penalty, which far exceeds the agreed-upon terms of my loan. At origination, I was informed the penalty followed a 3-2-1 structure : 3 % of the original loan amount if paid off within the first 12 months. 
2 % if paid off within 24 months. 
1 % if paid off between 24 and 36 months. 
With only two months left until the 36-month threshold, the penalty should not exceed 1 % of the loan amount, approximately {$8000.00}. The imposition of a {$12000.00} penalty appears to involve deceptive practices and misrepresentation, violating CFPB regulations under the Dodd-Frank Act, which prohibit unfair, deceptive, or abusive acts or practices ( UDAAP ).

4. Discriminatory and Unprofessional Treatment When I disclosed my XXXX military status and relocation to California, BSI representatives, including XXXX, mocked and dismissed my situation. This behavior is unprofessional and discriminatory, especially considering my service to this country. It also violates protections granted under the Servicemembers Civil Relief Act ( SCRA ) ( 50 U.S.C. 3901 et seq. ), which aims to reduce financial burdens on servicemembers. 

5. Violation of California and Texas State Laws As a California resident, I am protected by state laws ensuring transparency and fairness in mortgage servicing, including the California Homeowner Bill of Rights ( Cal. Civ. Code 2923.55 ).

Additionally, under the Texas Property Code ( 51.002 ), loan servicers must act in good faith and provide borrowers with clear information regarding their loan terms and lender decisions. BSIs refusal to provide lender information or honor my requests violates these legal obligations. 

Impact : As an XXXX  XXXX XXXX XXXX relocating to California, I am compelled to sell my home in Texas to avoid financial hardship. The unreasonably high prepayment penalty, lack of transparency, and discriminatory treatment by BSI have placed me in a precarious financial situation, undermining my ability to fulfill my duties and serve my country without undue stress. 

Requested Actions : I respectfully request the CFPB to : Investigate BSI Financial Services for denying my requests without lender consultation and withholding legally required information. 
Require BSI to provide full lender contact details and all related documentation, including communications regarding my loan. 
Enforce compliance with RESPA, XXXX, and state laws to protect my rights as a borrower and servicemember. 
Advocate for the correction or waiver of the excessive prepayment penalty, ensuring it reflects the original loan terms. 
Hold BSI accountable for discriminatory and unprofessional behavior, ensuring fair treatment for all borrowers. 
Supporting Legal References : Real Estate Settlement Procedures Act ( RESPA ) 12 U.S.C. 2605 ( e ) : Borrowers have the right to timely information about their loans and lender involvement in servicing decisions. 
Servicemembers Civil Relief Act ( SCRA ) 50 U.S.C. 3901 et seq. : Provides financial protections for servicemembers, including mortgage relief and deferment options. 
Dodd-Frank Act Prohibits unfair, deceptive, or abusive acts or practices ( UDAAP ). 
California Homeowner Bill of Rights Cal. Civ. Code 2923.55 : Mandates fair servicing practices and borrower rights to clear communication. 
Texas Property Code 51.002 : Requires loan servicers to act in good faith and provide accurate information about the loan. 
This situation has caused undue financial and emotional hardship during a critical time in my life. I trust that the CFPB will act swiftly to investigate these issues and uphold my rights under federal and state laws. 

Thank you for your attention to this matter. I am happy to provide additional documentation or information upon request. 

Sincerely,

Company response to consumer: Closed with explanation