Would You Do Business with An “F” Rated Lender?

Would you trust a company to hold your mortgage that has excessive complaints on the consumer affairs website with a rating of one star out of a possible five and an “F” Rating from the Better Business Bureau? And more importantly, are there mortgage lenders out there that are really debt collection companies determined to make your lives miserable?

We recently received an email one from of our readers who has had a very negative experience with BSI Financial services and some quick investigating exposed what appears to be a documented pattern of behavior by them to either charge excessive fees to homeowners or to force homeowners into foreclosure.

We’re not sure how many actual complaints have been filed against BSI Financial services but this Consumer Affairs link lists the top 92 complaints filed as recently as last month.

Additionally, there have been 88 complaints with the Better Business Bureau (BBB) in the past three years and the BBB gave them an “F” rating. Many of the homeowners have common complaints: poor customer service, false claims of non-payment, and premature default notices to name a few.

One specific homeowner on the Consumer Affairs site seems to have summed up what many of the homeowners have stated in their complaints:

“Just to reiterate what others have said about BSI Financial, this company is nothing more than a debt collection company disguised as a mortgage lender. How they operate is simple. They purchase “high risk” and “questionable” mortgages such as ARM’s where they feel there is a good chance the borrower took such a loan due to financial difficulty. Then they INTENTIONALLY make it difficult for said borrower to make the payments on-time. Late fees are accumulated and they collect hand over fist. They intentionally leave payments unprocessed, then deposit them late.” David of Valencia, CA on April 1, 2015.

Loan modifications and loan servicers are supposed to make it easier for homeowners to meet their obligations so we were very surprised to see all of these reports that suggest BSI Financial services is acting in bad faith.

So, what is a homeowner to do?   Contacting your state regulators is a good first start.  Rules vary state by state but you can also visit the Consumer Financial Protection Board (CFPB) website where you can report your issues or concerns.

We found there are many resources available from the CFPB and specifically some questions addressed on their website include:

What happens if my mortgage is sold?

What’s the difference between a mortgage lender and a servicer?

How can I tell who owns my mortgage?

I mailed my mortgage payment before it was due but my servicer received it after the due date and charged me a late fee. Can my servicer do this?

My mortgage servicer says I never made my payment but I did. What can I do?

A facebook page has been setup for anyone involved with BSI Financial Services or interested in hearing more about them at: https://www.facebook.com/thetruthaboutbsifinancialservices

Have any of you heard similar stories about BSI Financial or other loan servicers? We’d like to hear from you.