BSI Financial Services ("BSI"), a mortgage servicer, agreed to settle CFPB charges for violating the Truth in Lending Act ("TILA"), the Consumer Financial Protection Act of 2010 ("CFPA") and the Real Estate Settlement Procedures Act ("RESPA").
According to the Consent Order, BSI:
- failed to properly transfer or acquire loss mitigation information leading to transfers that were incomplete or incompatible with the relevant servicing systems;
- insufficiently supervised service providers, resulting in untimely escrow disbursements to pay borrowers' property taxes and homeowners' insurance premiums;
- neglected to maintain a sufficient document management system; and
- failed to enter interest rate adjustment loan data for adjustable rate mortgages promptly.
Under the terms of the Consent Order, BSI must, among other things, correct the relevant inadequacies, and pay a penalty of $200,000 and restitution of roughly $36,500.
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