Fay Servicing, LLC
Consumer Complaints
There are over 1355 complaints on file for Fay Servicing, LLC. Dated between 2019-12-06 and 2012-09-10.
Complaints Page 24
2017-11-16
Greenwood, CA
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Complaint: Please make this a rush as I have a sale scheduled for my property on Monday XXXX XXXX, XXXX and Im under a loan modification review.
Hi, my name is XXXX XXXX. I have some very bad issues going on right now with my servicer FAY SERVICING , LLC Investor XXXX Pass-Through Trust VI. and about my previous banks. I 'm having a very hard time dealing and working with my servicer FAY SERVICING , LLC. I have mailed and faxed over all documents for a loan modification but they are still proceeding with the foreclosure sale scheduled for XXXX/XXXX/XXXX. If they proceed with the sale they will be in violation of the CALIFORNIA HOMEOWNERS BILL OF RIGHTS and other laws as well.
As part of this bailout, on XXXX XXXX, XXXX, the United States Government took over XXXX XXXXe and pumped billions, which in XXXX XXXX, then Treasury Secretary XXXX XXXX said as much as {$200.00} XXXX would be pumped into XXXX XXXX and XXXX XXXX, each, which was separate from the {$700.00} in TARP funds given out to other lenders.
1. The guidelines issued by the United States Treasury set forth a detailed process whereby a participating servicer, either action or not acting through its subsidiary, must : a. identify loans that are subject to modification under the HAMP program, both through its own review and in response to requests for modification from individual homeowners ; b. collect financial and other personal information from the homeowners to evaluate whether the homeowner is eligible for a loan modification under HAMP ; c. institute a modified loan with a reduced payment amount as per a mandated formula, that is effective for a three-month trial period for borrowers that are eligible for a modification ; and d. provide a permanently modified loan to those homeowners who comply with the requirements during the trial period. Whether the homeowner qualifies for a modification or not, participating servicers are also required to provide written notices to every mortgage borrower that has been evaluated for a loan modification, whether or not the borrower has been found eligible.
HAMP and its associated directives also set prohibitions against certain conduct including demanding upfront payments in order to be evaluated for a loan modification, instituting or continuing foreclosures while a borrower is being evaluated for a loan modification, assigning a single point of contact, maintaining an adequate level communication with borrowers, maintaining proper caseload to ensure HAMP objections are met, and restrictions on the way a servicer may report the borrower to credit reporting agencies.
All servicers have systematically failed to comply with the terms of the HAMP directives and has regularly and repeatedly violated several of its prohibitions. Now that HAMP is over and expired due to servicers prolonging these modifications they are now proceeding with other alternatives.
Under HAMP, the federal government incentivizes participating servicers to make adjustments to existing mortgage obligations in order to make the monthly payments more affordable. Servicers receive at least {$1000.00} for each HAMP modification. However, this incentive is countered by a number of financial factors that make it more profitable for a mortgage servicer avoid modification and to continue to keep a mortgage in a state of default or distress and to push loans toward foreclosure. This is especially true in cases where the mortgage is owned by a third-party investor and is merely serviced by the servicer. However, this incentive is countered by a number of financial factors that make it more profitable for a mortgage servicer such as Fay Servicing , LLC to avoid modification and to continue to keep a mortgage in a state of default or distress and to push loans toward foreclosure. This is especially true in cases where the mortgage is owned by a third-party investor and is merely serviced by Service companies because Service companies do not carry a significant risk of loss in the event of foreclosure.
California Business and Professions Code 17200 et seq., also known as the California Unfair Competition Law ( UCL ), prohibits acts of unfair competition, including any unlawful, unfair, or deceptive business act or practice as well as unfair, deceptive, untrue or misleading advertising. Fay Servicing and all other previous servicers and their Investors conduct was unlawful in that : They illegally began and prosecuted the non-judicial foreclosure based on the lien to the 1st Deed of Trust, despite i was not in breach of payments on said lien ; They engaged in the uniform practice of requesting unnecessary documentation, seeking repetitive submissions of the same documents, and never rendering a decision, and in doing so, such activity provides the basis for an unfair inquiry and could deceive the public because it places burdensome requirements on me hat served no purpose but to provide a basis for either engaging in Dual Tracking by selling my home and by denying loss mitigation options, such as loan modifications ; They failed to properly consider loan modification applications before trying to sell my home.
1. On information and belief, Fay Servicing , LLC does not own a significant majority of the loans on which it functions as servicer.
2. Economic Factors that discourage Fay Servicing , LLC from meeting its obligations under HAMP by facilitating loan modifications include the following : a. Fay Servicing , LLC may be required to repurchase loans from the investor in order to permanently modify the loan. This presents a substantial cost and loss of revenue that can be avoided by keeping the loan in a state of temporary modification or lingering default.
b. The monthly service fee that Fay Servicing , LLC, as the servicer, collects as to each loan it services in a pool of loans, is calculated as a fixed percentage of the unpaid principal balance of the loans in the pool. Consequently, the modifying of a loan to reduce the principal balance results in a lower monthly fee to the servicer.
c. Fees that Fay Servicing , LLC charges borrowers that are in default constitute a significant source of revenue to it. Aside from income Fay Servicing , LLC directly receives, late fees and process management fees are often added to the principal loan amount thereby increasing the unpaid balance in a pool of loans and increasing the amount of the servicers monthly service fee.
d. Entering into a permanent modification will often delay a servicers ability to recover advances it is required to make to investors of the unpaid principal and interest payment of a non-performing loan. The servicers right to recover expenses from an investor in a loan modification, rather than a foreclosure, is often less clear and less generous.
e. Fixed overhead costs involved in successfully performing loan modifications involve up-front costs to the servicer for additional staffing, physical infrastructure, and expenses such as property valuation, credit reports and financing costs.
3. Rather than allocating adequate resources and working diligently to reduce the number of loans in danger of default by establishing permanent modifications, Fay Servicing , LLC has serially strung out, delayed, and otherwise hindered the modification processes that it contractually undertook to facilitate when it accepted billions of dollars from the United States. Fay Servicing , LLC delay and obstruction tactics have taken various forms with the common result that my loan serviced by Fay Servicing , LLC, in which im eligible for permanent loan modifications, and have met the requirements for participation in HAMP, have not received permanent loan modifications to which iam entitled.
4. By failing to comply with the California Homeowner Bill of Rights ; specifically, by engaging in the unlawful practice of Dual Tracking, Fay Servicing , LLC has left me in a state of despair and panic as I seek a loan modification from Fay Servicing , LLC, only to have my home wrongfully, oppressively and illegally sold out from under my feet.
When I opened my loan from XXXX XXXX XXXX my monthly payment was {$1300.00}. I couldnt pay them anymore due to my XXXX my husband left me and left me in the waters. I applied for a Loan Modification and they told me to make some trial period payments of {$1500.00}. I paid all three times for the three months, on time. After the payments were done they transferred me to XXXX XXXX XXXX. I had the same story with them, they asked for trial period payments and so I had no other choice I paid {$1900.00} for three months, on time. XXXX XXXXXXXX XXXX transferred me to Fay Servicing , LLC who is now my current servicer. I now have a foreclosure sale for XXXX/XXXX/XXXX. I have sent them all documents but they still have not offered me anything. I have sent them documents again. I dont want them to ask for a trial period payment and then transfer me to another servicer and then go through the same thing the banks have been doing to me twice. I dont even know if those trial period payments I have paid when towards anything like my loan or did they just take it. I want to keep my home and pay a reasonable amount.
I have a sale coming up on XXXX/XXXX/XXXX.
Company Response: Closed with explanation
2017-11-11
Colts Neck, NJ
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Complaint: starting in XXXX of 2016 I hired a lawyer and we started the process with Fay servicing of a loan modification so I would not lose my home.
I have filled out the same paperwork for almost 2 years now.
They keep sending documentation about foreclosure.
Every time I submit some type of documentation they tell me it either has expired because it takes them 90 days to review it, ca n't read it, forms have changed and that a line on a form is wrong and to do it a different way.
I have spent at least {$2000.00} with my lawyer t file paperwork.
Company Response: Closed with explanation
2017-11-11
Silver Spring, MD
Incorrect information on your report
Mortgage: Conventional home mortgage
Complaint: I divorced on XXXX XXXX XXXX. The divorce court order states I am no longer liable for the mortgage account as of XXXX XXXX XXXX. The XXXX has defaulted on the loan as of XXXX. Bank XXXX XXXX removed the negative report in XXXX after receiving the XXXX documents. XXXX XXXX put the defaulted mortgage balance back on my reports. They to have received the XXXX order stating I am not liable for the mortgage and refuse to remove the negative report.
I am not liable for the mortgage per the court order thus my credit report should not reflect any record after XXXX XXXX XXXX. Please help clarify this issue respectfully, XXXX XXXX XXXX
Company Response: Closed with explanation
2017-11-10
Barrington, IL
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Closed with explanation
2017-11-09
Newark, CA
Written notification about debt
Debt collection: Mortgage debt
Didn't receive enough information to verify debt
Company Response: Closed with explanation
2017-11-09
Branford, CT
Attempts to collect debt not owed
Debt collection: Mortgage debt
Debt was already discharged in bankruptcy and is no longer owed
Company Response: Closed with explanation
2017-11-09
Marlboro, MD
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Closed with explanation
2017-11-08
NJ
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Complaint: The documents will reveal that at no time have I received a valid mortgage modification from any of the 3 mortgage companies that I have attempted to work with either through my attorney or myself.
I initiated my modification XXXX XXXX, XXXX I was notified by a represented from XXXX Mortgage that my need for a law firm was unnecessary. A XXXX XXXX Deed was obtained, signed and filed in XXXX XXXX on XXXX XXXX, XXXX. Exhibit A My request for a modification was ignored after multiple requests to provide updated financial information. I retained a modification service who was able to assist me with obtaining a trial modification on XXXX XXXX, XXXX. Exhibit B. I completed the three required payments and was told to continue making the same payments until the documents were signed. I received a text message on XXXX XXXX, XXXX that my Docs have been sent. Exhibit C.
I received email notification on XXXX XXXX, XXXX that my divorce decree was unclear and that my modification document had not been sent as previously notified. I motioned the XXXX XXXX XXXX to modify my divorce decree to state the exact wording as requested by the lender XXXX. Exhibit D. The foreclosure process was continued even after providing the requested documents.
XXXX XXXX retained the XXXX XXXX form to represent my foreclosure defense. The Law Firm XXXX, XXXX and XXXX, XXXX withdrew their motion permitting service of notice of intentions to foreclose on XXXX XXXX, XXXX. Exhibit E. I was still not given a modification for unknown reasons. I received notification on XXXX XXXX, XXXX that my mortgage was to be sold to XXXX, XXXX on XXXX XXXX, XXXX. Exhibit F.
I remained represented by the XXXX XXXX firm who relentlessly attempted to obtain a modification based on my many HAMP packages submitted. Instead, the law firm representing XXXX XXXX, XXXX XXXX, XXXX, filed intent to foreclose. A defense and contesting answers were submitted to the XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX on XXXX XXXX, XXXX. DOCKET NO : XXXX. Exhibit G.
On XXXX XXXX, XXXX I was again approved for a trial modification based on the Fannie Mae XXXX XXXX trial period plan. I completed the XXXX payment as required, all payments were monitored through XXXX XXXX XXXX. of the XXXX XXXX Firm. Exhibit H The law office of XXXX XXXX had attempted several times on my behalf to research the status of my modification, I had completed all the terms required for the second time. Finally on XXXX XXXX, XXXX XXXX XXXX XXXX received a call from XXXX XXXX of XXXX XXXX, confirming that the modification documents were sent directly to their attorneys at XXXX XXXX stating the bank is unable to send documents directly to their office. The request was made to resend the final modification documents. The final modification expired on XXXX XXXX, XXXX. See communication timeline Exhibit I. Unfortunately the final modification documents were not received until after the XXXX XXXX, XXXX date to except payment, and after the loan had been sold.
I was then notified by mail in XXXX XXXX that my loan was sold on XXXX XXXX, XXXX for the third time, to XXXX XXXX, immediately up receiving this notification I notified my attorney who was also unaware of the recent sale. I called XXXX XXXX and spoke with XXXX XXXX. I informed him that I was waiting for my final modification documents, that I had successfully completed all the required payments and submitted all my banking and financial information. XXXX XXXX was given all my contact information and informed me that XXXX XXXX was awaiting my file from the previous lender. Exhibit J.
The Fannie Mae XXXX program expired on XXXX XXXX, XXXX. I contacted a representative from the XXXX XXXX XXXX who called XXXX XXXX on a XXXX way call to assist with determining the status of my modification. XXXX XXXX I was sent a new modification from XXXX XXXX, This modification was only in my name, not the names on the original mortgage, this modification was unable to be filed due to being incorrect. This modification was also not prepared to the terms of the contractual agreement that I completed under the Affordable Housing Program and I was also informed that my loan was no longer a Fannie Mae Mortgage. I was unable to complete this modification because it was executed incorrectly by the lender. Exhibit K.
I was served via certified mail with a notice for application for final judgement on XXXX XXXX, XXXX. I immediately contacted XXXX XXXX the advisor I have been speaking with bi weekly since the incorrect modification was issued in XXXX. XXXX XXXX informed me that XXXX XXXX sent incorrect and incomplete information to XXXX XXXX and this was being investigated. I had also sent XXXX pages of legal documents to XXXX XXXX XXXX Department on XXXX XXXX, XXXX via certified mail to accurately update my file. Exhibit L.
On XXXX XXXX, XXXX I received a letter giving me several options, the option I chose was to complete a modification application, Exhibit M. I retained the service of XXXX and Associates who directly contacted XXXX XXXX for details in completing the modification process.
My modification was denied for the reason that I have declined too many other modification offers. This is incorrect. I have never received a valid modification, despite my many attempts.
Company Response: Closed with explanation
2017-11-08
Milwaukee, WI
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Complaint: I lost my job several months ago, and have not been able to pay my mortgage for most of 2017. My account is with Fay servicing in XXXX. I asked My account manager for options And she was able to work up a modification plan but the problem with the modification plan is it requires over {$4000.00} as a good faith payment upfront. In the past they have waived the good faith payment and are refusing to waive it now. I then asked for a deed in Leiu Of foreclosure, basically a cash for keys which in my first conversation with my account manager she stated I would be eligible for at least {$3000.00} but will try to get me more. She then moved forward getting the modification but never worked on the cash for keys, asked her to check on it she put me on hold and five minutes later came back and said her VP said no cash for keys but they would take the keys and the deed. I said I cant come up with the {$4000.00} I once again asked for something for the deed, she began to argue with me. I can not tell you how many times Ive had to deal with Fay Servicing, they have put me in to other modifications which I told them were too expensive for me to handle I just want to be done with the house but I would need some sort of cash amount in an effort to be able to get a security deposit and first months rent with an apartment. I think it has been their goal all along to try to push me out of the house. The investors that own The mortgage have modified several times before without a good-faith payment, they have also offered me cash for keys in the past which I did not take because at the time I wanted to keep the house. Fay Servicing is extremely dishonest and they treat people that are having financial struggles horribly. I have read other situations which they push forward with foreclosure which is what they did when they first got my loan a few years ago. I was under a forbearance agreement with my former mortgage servicer, and once they purchased it they immediately put my house back into foreclosure. This is a tactic they use, the only reason I still have the house is because I fought it.
Company Response: Closed with explanation
2017-11-07
Jersey City, NJ
Struggling to pay mortgage
Mortgage: Other type of mortgage
Company Response: Closed with explanation
2017-11-07
Washington, DC
Incorrect information on your report
Credit reporting, credit repair services, or other personal consumer reports: Credit reporting
Account information incorrect
Complaint: On XXXX XXXX, XXXX, I requested an investigation with XXXX XXXX into my Fay Servicing account, because as of XXXX XXXX, XXXX a mortgage modification was done but the account continues to show negative information ( delinquent payments and past due amount ). After a modification is done the account should show current. The investigation came back with no information being changed. A second investigation was requested on XXXX XXXX, XXXX, and as of this writing the account still stands in the negative.
Company Response: Closed with explanation
2017-11-07
TX
Trouble during payment process
Mortgage: Conventional home mortgage
Complaint: Fay Servicing LLC, is our current mortgage company, and is holding a flood loss check issued on XXXX/XXXX/XXXX in the amount of {$26000.00}. issued by XXXX XXXX. XXXX for losses sustained in Hurricane Harvey. Our home is in XXXX XXXX, TX. The check had been sent to them and after claiming they had not gotten it, we contacted the flood insurance company as to it 's whereabouts. We were again informed that the check had been mailed to Fay Servicing. Fay finally " found '' the check and mailed it to us for our endorsement. ( They over-nighted the check to the property address, requiring a signature, where no one was living due to damages. ) We returned the endorsed check to them on XXXX/XXXX/XXXX and they deposited the check to their account on XXXX/XXXX/XXXX. During this time, from XXXX/XXXX/XXXX, our initial contact, we have made numerous phone calls, emails and written communications explaining our need for the release of funds. We have signed and sent them the Homeowner 's Certificate of Intent to Repair on XXXX/XXXX/XXXX, with the receipts of close to {$9000.00}. already spent on repairs. Fay had also requested a flood insurers inspection and estimate of loss from us. Due to the extensive damage, way above the insured amount, the flood insurance company did not give us a report. A letter was sent to Fay from the flood insurance company to that effect. As of this date we have not had an inspection on the property by Fay or any release of funds. Our account manager, XXXX XXXX, emailed us on XXXX/XXXX/XXXX stating that he had forwarded a request to the company 's loss draft department for expedited attention to our account.We replied to his email acknowledging his help but also stating we had already reached out to Texas State authorities. Our Attorney General 's Office advised us to file complaints with several different authorities which included this office. We also started a file with the XXXX XXXX XXXX XXXX set up for free financial help to Hurricane Harvey victims. We will be contacting other agencies today in hopes that they can help us in some way. Our son has borrowed funds to repair the home and has spent another {$5000.00} in materials and labor. We feel Fay Servicing LLC is attempting to keep the flood insurance proceeds to recoup their investment or at the very least to collect interest on the amount. We only owe less than {$24000.00}. on the mortgage.
Company Response: Closed with explanation
2017-11-07
Oxford, GA
Problem with a credit reporting company's investigation into an existing problem
Credit reporting, credit repair services, or other personal consumer reports: Credit reporting
Their investigation did not fix an error on your report
Complaint: Fay servicing respond to the complaint, and only resolved 1/2 of the problem. BOTH late notes should have been deleted ( not just the one that they deleted ) ... the late reports, and fees were all part of the same issue ( hacked checking account and documents sent to Fay on 7 occasions ). This ongoing issue with Fay is hurting our credit score and the ability to get a mortgage.
Below is the email that I sent to Fay on 4 occasions, going back to XXXX, 2017.
Hello XXXX, Once again thank you for sending the summary / account activity report on our account.
Please note the following as to our account.
We have been and continue to make two payments per month. Each payment is for {$1200.00}. We have been making these two payments per month for over 2 years.
Per your predecessor, XXXX XXXX XXXX, your company did not process the two payments in a timely manner as they did not know how to handle these types of payments, ( even thought I noted on EVERY payment the amount to principal and to the payment ). Hence these payments were shown as partial at times and at times caused the account to show as late. Because of this improper handling of our payments, late fees and notes were added to our account.
The returned checks / fees were due to my checking account being hacked and our account frozen until the fraud was being corrected. Again this information was communicated to XXXX during several phone calls.
In closing the following corrections should happen to our account.
1. All late fess should be waived. I am ok with the late fees being credited to our account as additional principal payments.
2. Our account should not show ANY late payments.
Thank you in advance for correcting these errors on our account.
Please feel free to contact me with any questions.
Best regards, XXXX XXXX XXXX XXXXXXXXXXXX HELP!!!!!
Company Response: Closed with explanation
2017-11-06
OR
Attempts to collect debt not owed
Debt collection: Mortgage debt
Debt is not yours
Complaint: XXXX sold my loan to Fay Servicing ( about {$5000.00} left ).
Fay Servicing wants to add insurance to my loan amount for a home that is non-existant, just like XXXX did.
They sent me a policy from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Georgia XXXX XXXX XXXX XXXX Delaware XXXX
The certificate they sent says the insurer must be licensed to operate in my state, I tried to get some kind of insurance, with no home to insure, and my insurance lady said there was no insurance company in Oregon that would issue such a policy. So I do n't believe XXXX XXXX XXXX. XXXX and Fay Servicing have the right to charge me for a homeowners insurance policy when there is no home.
They are also putting any money I pay that is over the payment amount required into a non-applied account? I have requested on the phone and in writing that I want any money over the payment to be applied to the principal, but they do n't do it.
They are stealing and cheating.
Company Response: Closed with explanation
2017-11-03
Wonder Lake, IL
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Closed with explanation
2017-11-03
Cedarville, MA
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Closed with explanation
2017-11-01
Houghs Neck, MA
Struggling to pay mortgage
Mortgage: Other type of mortgage
Company Response: Closed with explanation
2017-11-01
Rockwell, NC
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Closed with explanation
2017-11-01
Tampa, FL
Struggling to pay mortgage
Mortgage: Other type of mortgage
Company Response: Closed with explanation
2017-11-01
Concord Twp, OH
Trouble during payment process
Mortgage: Other type of mortgage
Company Response: Closed with explanation
2017-10-31
Spruce Head, ME
Trouble during payment process
Mortgage: Conventional home mortgage
Company Response: Closed with explanation
2017-10-30
Wallington, NJ
Struggling to pay mortgage
Mortgage: FHA mortgage
Complaint: I have been in contact with my Account Manager for Fay Servicing in regards to my mortgage. There have been issues previously with the account that the last account manager XXXX XXXX did n't resolve. I have been unemployed, but I have been trying to work with Fay Servicing in regards to repairing my status with the mortgage company. I informed the new account manager that I want to save my house and even went into a Forbearance/Trial Plan Agreement even though I did n't really have the money to pay the mortgage and the rest of my bills. I informed my account manager that a {$50000.00} payment was going to come from the NJ Hardest Hit Fund. They finally received the payment in last week of XX/XX/XXXX. I have other bills to pay that include the water bill and XXXX XXXX XXXX that takes preference and I was trying to make an arrangement with Fay Servicing. When I looked at statement from Fay Servicing that I received in the mail it said that on XX/XX/XXXX a total of {$38000.00} ( You must pay this amount to bring your loan current ). Now I already submitted a payment of {$1100.00} on XX/XX/XXXX to be applied to may account and I know that the {$50000.00} would cover the {$38000.00} to be my account current. Now Fay Servicing has informed me that they applied the {$50000.00} to my account, but they said that I have an outstanding balance of {$2800.00}. I know that they did n't apply the full amount to my mortgage in order to make it current.
Company Response: Closed with explanation
2017-10-30
Struggling to pay mortgage
Mortgage: FHA mortgage
Company Response: Closed with explanation
2017-10-27
Oxford, GA
Incorrect information on your report
Credit reporting, credit repair services, or other personal consumer reports: Credit reporting
Account information incorrect
Complaint: Our loan is with Fay servicing. We were making XXXX payments ( and still are ) per month XXXX XXXX XXXX to loan, XXXX to principal. Fay was holding checks until complete payment was made, and then this caused us to show " late ''. In addition out bank account was hacked and we had to replace XXXX returned payments. I sent the information from our bank to Fay and they were to drop the late charges on this issue.
As to the XXXX late payments, I have sent letters, emails, and spoke with multiple customer service reps on the issue. All have stated that the issue would be resolved in our favor. This has gone on for over XXXX months ... .HELP. A copy of the most current email is enclosed.
The actions, ( or in some case inactions ) has caused damage to our XXXX XXXX and ability to refinance our loan.
Thank you, XXXX XXXX XXXXXXXXXXXX XXXX
Company Response: Closed with explanation
2017-10-26
Redding, CA
Struggling to pay mortgage
Mortgage: Conventional home mortgage
Company Response: Closed with explanation