Fay Servicing, LLC has reached an agreement with the Consumer Financial Protection Bureau (CFPB) regarding allegations that it failed to comply with rules governing the loss mitigation process for borrowers who were in default on their mortgages. Fay has agreed to pay $1.15 million in redress to the affected borrowers. No penalty was assessed and no monitor is required going forward.
Fay has always been committed to delivering a high-quality customer service experience to borrowers while complying with all applicable legal and regulatory requirements. The isolated claims concern a small fraction of the more than 85,000 borrowers whose mortgages Fay Servicing has serviced since it was founded in 2008. While Fay regrets any instance in which it did not comply with a regulatory requirement, we believe the affected borrowers were well-served during the loss mitigation process using Fay’s high-touch and borrower-centric approach to servicing severely delinquent loans. The company reached this agreement with the CFPB in the interest of putting this matter behind it and focusing on the needs of its clients, employees, and borrowers.
Fay Servicing is an independently-owned mortgage servicer that specializes in managing at-risk residential mortgage loans. Fay plays a crucial role in America’s housing finance system by helping severely delinquent borrowers avoid foreclosure. Although the delinquent mortgages Fay boards are on average more than 700 days past due, 70 percent of these borrowers have successfully completed the loss mitigation process or are currently in loss mitigation. This exemplary track record demonstrates Fay’s commitment to serving borrowers as well as its ability to have a positive impact on their lives. Fay continues to be at the forefront of the customer service industry and looks to build upon its strong record of responsible mortgage servicing going forward.