Consumer complaint received 2025-09-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Community Loan Servicing, LLC (formerly known as Bayview Loan Servicing, LLC)
State: MO

Complaint narrative:
Pursuant to Bayview ( loan servicing ), community ( loan servicing XXXX LLC, and silver hill capital LLC ( ( loan servicing ) ) response of XX/XX/XXXX to the Consumer Financial Protection Bureau on behalf of XXXX and XXXX 's XXXX ( XXXX ) loan number XXXX regulatory case number : XXXX. ( loan servicing ) has been providing documents that are a misrepresentation. Based upon our experience with ( loan servicing ) it would not be improper to say that this is a purposeful attempt at misleading. 
( loan servicing ) admits to seizing fiduciary funds and applying it to their own account. Continual failure to respond to consumer inquiries in good faith while providing vague evasive information. Kansas statute 9-2226 describes mortgage companies/ ( loan servicing ) violation provisions related to escrow handling. Misuse of escrow funds is a prohibited act. ( loan servicing ) must deposit and apply escrow funds strictly in accordance with the terms of the mortgage agreement and applicable law. Co-mingling or diversion of escrow funds for unrelated purposes is a direct breach of fiduciary duty and could trigger civil penalties, license suspension etc. The statutory penalty in the state of Kansas is up to {$7500.00} plus damages.

This response from silver hill et al, Does not include documents that would specifically and immediately resolve of this matter. We have included with our response documents that will specifically resolve this matter and will prove that the information given all along has been a misrepresentation to justify seizing fiduciary funds for their own enrichment. 

We have included all documents from our files that were originated by ( loan servicing ). These documents are also in possession by ( loan servicing ) but have chosen not to respond until engaging the Consumer Financial Protection Bureau of which misleading documents were finally produced. 
The documents have been highlighted and numbered for accurate reference. 

1. Reference item. The payoff statement dated XX/XX/XXXX is a statement that was generated after the fact. This statement is not the corresponding statement to the settlement agreement signed and dated by both parties administered by XXXX XXXX XXXX XXXX of XXXX XXXX XXXX IA representing ( loan servicing ). The true and correct payoff statement is dated XX/XX/XXXX and is corresponding to the settlement agreement executed by both parties See reference item XXXX Attached. Also see reference item number XXXX that is the settlement agreement that corresponds to the payoff statement of XX/XX/XXXX. 
XXXX. Reference item XXXX attached. The escrow statement was not produced by ( loan servicing ) at the time the settlement agreement was made. This document is an after the fact document, but we do not challenge its accuracy however, we do challenge the fact that if it was presented at the time the settlement agreement was made ( loan servicing ) would not have been able to exclude the escrow fiduciary funds that were seized and misused in the accounting at the time. This is very serious act of Misrepresentation or Concealment. 
XXXX. 
a ) Reference item XXXX attached. Admitted by ( loan servicing ) that funds were received XX/XX/XXXX. Reference item XXXX attached proof of transfer date and amount. Why did ( loan servicing ) take XXXX working days to register the payment in their system? XX/XX/XXXX does not correspond to our wire transfer dated XXXX off transfer date entered XXXX / XXXX / XXXX for an effective date of XXXX / XXXX / XXXX Any interest charged in this delay is due ( XXXX ) b ) ( loan servicing ) admits receiving {$880000.00} which correlates to the proper loan payoff statement as evidenced by the settlement agreement executed by both parties. 
c ) ( loan servicing ) admits an escrow balance of fiduciary funds of {$7700.00} that was seized and misused for their own enrichment and did so knowingly. 
XXXX. Reference item XXXX attached ( loan servicing ) admits they seized fiduciary funds and did not pay XXXX XXXX taxes as contracted and failed to notify ( XXXX ) of their actions. At minimum this would be a breach of fiduciary duty with deceptive intent at a maximum it is fraud. 
XXXX. Reference item XXXX attached ( loan servicing ) reimbursement obligation of fiduciary funds with statutory interest and any statutory penalties Due to improper seizing of fiduciary funds and bad faith in producing vague and evasive information. 
XXXX. Reference item XXXX attached indicates that they fiduciary funds escrowed went to taxes when all along it did not and that ( XXXX ) has given previous documents proving XXXX XXXX never received the escrowed fiduciary funds that ( loan servicing ) was contracted as a part of their responsibility. Multiple serious violations both civil and potentially criminal - fiduciary breach of duty false pretense/ theft by deception XXXX. 
a ) Reference item XXXX attached is the payoff statement that was generated on XX/XX/XXXX. The XX/XX/XXXX payoff statement was created to support a defense and is unreliable. 
b ) Reference item number XXXX attached itemizes an escrow shortage of {$1900.00} that if ( XXXX ) had paid this to ( loan servicing ) An escrow shortage of {$1900.00} itemized must be refunded XXXX. 
a ) Reference item XXXX attached. This is the true and correct payoff statement dated XX/XX/XXXX. This correlates to the settlement agreement executed by both parties. 
b ) Reference item XXXX attached interest through XX/XX/XXXX the payoff statement dated XX/XX/XXXX is itemizing that this loan is due for the three/ XXXX XXXX payment. On XX/XX/XXXX ( XXXX ) Paid the XXXX payment which includes the interest through XX/XX/XXXX of XXXX. This would cause the {$6700.00} that was added into the payoff amount should be refunded as those funds were received XX/XX/XXXX under the payment confirmation number XXXX. Consequently the fiduciary escrow funds in addition to the interest through XX/XX/XXXX and other be refunded. 
c ) Reference item XXXX attached. Proof of XXXX payment under confirmation number XXXX XXXX along with a bank posted date of XX/XX/XXXX itemizing proof of good funds XXXX. Reference item XXXX Attached Settlement agreement made in XXXX of XXXX executed by both parties. 
XXXX. Reference item XXXX attached evidencing the payoff amount that is not exact to the payoff statement provided by ( loan servicing ). The documents contain errors but not of material consequence and supports the correlation between the XX/XX/XXXX payoff statement and the settlement agreement between the parties. 
XXXX. Reference item XXXX attached borrowers ( XXXX ) had executed this agreement on XX/XX/XXXX. 
XXXX. 
a ) Reference item XXXX attached amendment to reservation of rights agreement. This document supersedes the reservation of rights agreement as indicated by reference item XXXX. The rest of the document exhibit A and exhibit B has referenced in XXXX becomes part of the amendment to reservation of rights agreement as indicated as item XXXX. 
b ) Item XXXX confirms the correlation between the payoff statement as referenced as Item reference XXXX supports the balance required as payoff by ( XXXX ) {$880000.00}. 
c ) The seizing fiduciary funds regardless of a balance shortage or not was an illegal transaction That never should have taken place. ( Loan servicing ) remains in violation. 
XXXX. Reference item XXXX attached. Proof of payment {$880000.00} and date transferred XXXX XXXX XXXX. This amount corresponds exactly to the payoff statement and settlement agreement executed by both parties.

Company response to consumer: Closed with explanation