On May 29, 2019, BSI Financial Services entered into a consent order with the Consumer Financial Protection Bureau (CFPB). In April 2014, the CFPB asserted that BSI Financial did not have an adequate information technology plan that included procedures to ensure the integrity of loan data obtained from other servicers when boarding loans.
BSI Financial has always been committed to delivering a high-quality customer experience to borrowers while complying with all applicable legal and regulatory requirements. The data integrity issues identified by the CFPB were isolated to loans that were boarded prior to September 2014. While we regret any instance in which we did not comply with a regulatory requirement, we believe those cases were isolated incidents and have been resolved in the ordinary course of business.
We reached this agreement with the CFPB in the interest of putting this matter behind us to focus on the needs of our clients, employees, and borrowers.
"The CFPB essentially asked us to create a data integrity program, so we developed technology that drives the best data integrity program in the industry," said Gagan Sharma, BSI Financial President and CEO. "We remain committed to being compliant with all rules and guidelines."
In February 2017, BSI Financial launched a new analytics application that performs loan-level analysis of all loans we service, as well as new loans being boarded. Named BSI ASSET360TM, the application scours 10,000 standardized data elements and examines the entire portfolio daily, applying more than 1,000 business rules. Any exceptions or anomalies it finds are then referred to operations teams for research and remediation.
ASSET360 is an example of REGTECH, a type of technology that enables us to perform daily exception analysis of every loan we service to reduce errors, improve service to borrowers and ensure regulatory compliance. It is unique to BSI Financial and we believe it is the most advanced application of its kind.
ASSET360 drives daily reporting to lenders, updates loan information available to borrowers through desktop and mobile applications and is used to support our data integrity program. It is core to our information technology and data improvement strategies.