Well after a few phone calls, I've pieced together the missing pieces.

Turns out our mortgage company didn't just try to draw the funds once, but over and over and over again, so they racked up some pretty hefty fees at our now ex local brick and mortar bank.

They got the paypal money, took out what they were owed (cause you know how electronic transactions justify a $30 per attempt fee...) and sent me a check for the rest, which just arrived today.

And my NEW checking account with Wells Fargo is now active and linked, so contribution are open again.

I'd love to blame a bank here, but I screwed up, and banks are gonna bank when their members screw up. Can't blame sharks for eating the swimmers. So - the lost funds from DFF will be reimbursed out of pocket, no problem there, and we're back in full operation. Now I just need to deposit the money back in.