Consumer Bureau Action Tracker

CFPB – Fay Servicing, LLC


State

Nationwide

target

Fay Servicing, LLC

Topics

Enforcement, Mortgage Servicing

In June 2017, the CFPB announced a consent decree they reached with “mortgage servicer Fay Servicing, LLC for alleged violations of the Bureau’s 2014 mortgage servicing rules.” Specifically, “the CFPB alleged that Fay Servicing failed to provide timely notices to delinquent borrowers” with regard to “foreclosure mitigation options available to them.” Fay Servicing even “proceeded with foreclosure actions against borrowers who had applied for loss mitigation options while their applications were under consideration … The order require[ed] Fay Servicing to set aside $1.15 million for the purpose of providing redress to affected borrowers.”

  • “On June 7, 2017, the Consumer Financial Protection Bureau announced entry of a consent order against mortgage servicer Fay Servicing, LLC for alleged violations of the Bureau’s 2014 mortgage servicing rules.” [CFPB Enters Consent Order with Mortgage Servicer Fay Servicing, National Law Review, 06/13/17]
  • “The CFPB alleged that Fay Servicing failed to provide timely notices to delinquent borrowers acknowledging that their loss mitigation applications were complete or incomplete, and failed to provide timely notices to delinquent borrowers of the foreclosure mitigation options available to them. The CFPB further alleged that Fay Servicing proceeded with foreclosure actions against borrowers who had applied for loss mitigation options while their applications were under consideration. According to the Bureau, these issues constituted violations of multiple rules under the 2014 mortgage servicing rules.” [CFPB Enters Consent Order with Mortgage Servicer Fay Servicing, National Law Review, 06/13/17]

Status

Inactive or Resolved


2017-CFPB-0014 6/7/2017 6/7/2017

Consumer Financial Protection Bureau Takes Action Against Fay Servicing for Failing to Provide Mortgage Borrowers with Protections Against Foreclosure
https://www.consumerfinance.gov/policy-compliance/enforcement/actions/fay-servicing-llc/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $1,150,000
  • Not Available

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