Mortgage Servicer Fined $200K for TILA/RESPA Violations

The CFPB last week announced a settlement with mortgage servicer BSI Financial Services for violating the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA). Under the consent order, BSI will pay a $200,000 civil money penalty and at least $36,500 in restitution.

According to the bureau, BSI, among other things:

  • Handling mortgage servicing transfers with incomplete or inaccurate loss mitigation information. This resulted in failures to recognize transferred mortgage loans with pending loss mitigation applications, in-process loan modifications, and permanent loan modifications;
  • Handling mortgage servicing transfers with incomplete or inaccurate escrow information resulting in untimely escrow disbursements;
  • Inadequately overseeing service providers, resulting in untimely escrow disbursements to pay borrowers’ property taxes and homeowners' insurance premiums;
  • Failing to promptly enter interest rate adjustment loan data for adjustable rate mortgage (ARM) loans into its servicing system, resulting in BSI sending monthly statements to consumers that sought to collect inaccurate principal and interest payments; and
  • Maintaining an inadequate document management system that prevented BSI’s personnel or consumers from readily obtaining accurate information about mortgage loans.