Consumer complaint received 2025-09-26 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: BSI Financial Holdings, Inc.
State: TN

Complaint narrative:
I received a Title 1 Home Improvement Loan in XX/XX/XXXX, thru XXXXXXXX XXXX. The loan was for {$25000.00}, and has an annual fee/MIP of {$250.00} payable to HUD. This fee is collected from the {$220.00} monthly loan payment, in the amount of {$20.00}. 

In XX/XX/XXXX, my loan was transferred to BSI Financial Services. In late XX/XX/XXXX, I received a letter stating they were increasing my escrow to {$38.00} ( from the contractual {$20.00} ). No explanation was provided. I phoned XXXX on XX/XX/XXXX, with follow-up on XX/XX/XXXX, and spoke with a customer service agent each time. I explained the payment conditions of a Title 1 Home Improvement Loan ( stating the MIP amount is set at loan origination and can not change for the life of the loan ). I asked to speak with someone about the servicing of this loan, and each time I was told there was no one I could speak with, that theyd email the appropriate department. I did not receive a response from either call. 

In XX/XX/XXXX, I received a Notice of Default and Acceleration letter from BSI, stating I was delinquent for XXXX payments of {$240.00}, with a late fee of {$8.00}. Then, on XX/XX/XXXX, and XX/XX/XXXX, I received notifications from my credit monitoring services that BSI had reported a past due payment to all XXXX Credit Reporting agencies. 

On XX/XX/XXXX, I phoned BSI and spoke with a woman who seemed to understand the Title 1 Home Improvement Loan conditions, and stated she would email the correct department for investigation and review. She also told me all my payments had been made on time ; however they were not processed as they were not for the correct amount. On XX/XX/XXXX, I received a call from BSI and the woman stated they had conducted an audit last year and discovered the Upfront MIP ( {$250.00} ) had not been paid to HUD ; that the increase in escrow/MIP was for collection of that payment. I requested all documentations and calculations for this audit/discovery ; she did not respond. I inquired as to why Im being charged for a payment that was not made to HUD XXXX  years ago, and which would have been done by the lender at closing. She told me to look at my loan documents ; that it wasnt paid and was then found during the audit, and I have to pay that fee. 

Im extremely frustrated and angry over this matter, and am requesting your assistance. I only received one letter advising me my escrow was going up, without explanation or documentation, and they did not respond to my phone calls in XXXX and XX/XX/XXXX. Then, months later, I receive the Notice of Default and Acceleration, that my loan was going into default, even though all payments were made timely via electronic transfer on the XXXX of each month, with no denial, rejection, or failure to transmit notifications from my bank. Finally, after a third phone call, and still no receipt of any documentation, Im told Im being held responsible to pay for an Upfront fee that supposedly was not made to HUD XXXX years prior, by the original lender. 

I find it reprehensible that a financial institution would be illegally trying to collect a fee that was due XXXX years prior, which was the responsibility of the original lender at closing, and is adamant about not correcting their error. 

Thank you for your assistance.

Company response to consumer: Closed with explanation