As of February 8th, 2022, the Consumer Financial Protection Bureau (CFPB) took action against mortgage servicer Fay Servicing for failing to provide mortgage borrowers with the protections against foreclosure that are required by law.
The Bureau found that Fay “violated the CFPB’s servicing rules by keeping borrowers in the dark about critical information about the process of applying for foreclosure relief.”
They also detected instances where Fay Servicing “illegally launched or moved forward with the foreclosure process while borrowers were actively seeking help to save their homes.”
Additional law violations include, but are not limited to:
- Taking prohibited foreclosure actions against certain borrowers.
- Failure to have policies and procedures reasonably designed to provide required foreclosure protections in compliance with applicable law.
- Failure to send acknowledgement notices to numerous borrowers.
- Failure to send evaluation notices to numerous borrowers
- Failure to correctly advise borrowers of their appeal rights in evaluation notices.
A complete list of violations, along with further information, can be found in the servicing consent order.
As a result of these numerous and serious infractions, the CFPB has ordered Fay Servicing to stop its illegal practices and pay up to $1.15 million to harmed borrowers.
If you have been harmed by Fay Servicing or another lender, are in need of loan modification help, or are facing a sheriff’s sale or foreclosure, contact the Law Office of Ira J. Metrick in Freehold, NJ for information and assistance.