Consumer complaint received 2021-04-20
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC (CA)

Step 1 : What is this complaint about? This is about mortgage.

Step 2 : What type of problem are you having? I requested for mortgage assistance from my lender, Fay Servicing because my daughter and her husband are planning on moving to a different house. We have been able to afford our monthly mortgage payment ( now {$3300.00} per month ) because my daughter XXXX XXXX and her husband XXXX XXXX have been contributing up to {$2500.00} per month ( currently $ XXXX ). Without them, we would not be able to afford the monthly mortgage payment which happens to be based on interest of 4.375 % per annum. 

Step 3 : What happened? 
The Homeowners Bill of Rights provides that servicer should Guarantee single point of contact : If you ask for a loan modification or other foreclosure-prevention option, your servicer must assign you a specific person or team who can walk you through application requirements and deadlines, knows the facts and status of your application, including missing documents needed to complete your application, and can get you a decision on your application. ( Civil Code section 2923.7 ) However, Fay Servicing has not promptly established a single point of contact to me and has not provided to me ( the borrower ) direct means of communication by direct email or direct telephone. 
The Consumer Bill of Rights has this to say about Denial rights : If your servicer denies your loan-modification application, it must state its reasons and identify other possible foreclosure-prevention options in writing. It must also give you a chance to appeal the denial. You may submit a new loan-modification application if you have had a material change in your financial situation since the last application. ( Civil Code section 2923.6 ). As far as verification of document is concerned, the Consumer Bill of Rights states : Verification of documents : Your servicer must review certain foreclosure documents to make sure they are accurate, complete, and supported by reliable evidence about your loan, your loans status, and the servicers right to foreclose. ( Civil Code section 2924.17 ). However, Fays XX/XX/XXXX letter gave an unbelievable reason/explanation which was : This notice is to inform you that, pursuant to California law, your loss mitigation application will not be evaluated, because you failed to submit your complete loss mitigation application at least five ( 5 ) business days before the foreclosure sale scheduled to occur on XX/XX/XXXX XXXX past event ). The letter does not identify other possible foreclosure prevention options. See file, 1-XXXX A hard copy of this letter was sent by Fay Servicing onXX/XX/XXXX through the US Postal Service and received by me on XX/XX/XXXX 
Civil Code section 2923.7 ( 3 ) says : Having access to current information and personnel sufficient to timely, accurately, and adequately inform the borrower of the current status of the foreclosure prevention alternative. However, the quality control entity of Fay was not aware that the required document for XXXX XXXX was already sent via email on XX/XX/XXXX. See my letter/email to Fay Servicing dated XXXX XXXX at XXXX XXXX  ( see file, 2-XXXX XXXX ). Also, during a 3-way telephone conference between XXXX XXXX of Fay Servicing, XXXX XXXX of XXXX and myself ( the borrower ), XXXX XXXX informed us that they ( Fay Servicing account representatives ) have no access to the loansolutionscenter website. 

Civil Code section 2923.7 ( 4 ) says : Ensuring that a borrower is considered for all foreclosure prevention alternatives offered by, or through, the mortgage servicer, if any. 

But to date, no loss mitigation options have been offered Civil Code section 2923.7 ( c ) says : The single point of contact shall remain assigned to the borrowers account until the mortgage servicer determines that all loss mitigation options offered by, or through, the mortgage servicer have been exhausted or the borrowers account becomes current. To date however, Fay has not provided a single point of contact. 
Civil Code section 2923.7 ( d ) says : The mortgage servicer shall ensure that a single point of contact refers and transfers a borrower to an appropriate supervisor upon request of the borrower, if the single point of contact has a supervisor. However, in my letter/email to Fay on XX/XX/XXXX and on XX/XX/XXXX, I requested for a three-way conference with XXXX XXXX XXXX but theres no response ( see file, 3-XXXX and file, 4-XXXX & XXXX. On XX/XX/XXXX, I also requested for a three-way conference with XXXX XXXX but Fay Servicing did not respond ( except to impromptu three-way conferences that XX/XX/XXXXinitiated ). See file, XXXX XXXX XXXX ' XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
Civil Code section 2923.7 ( e ) says : For purposes of this section, single point of contact means an individual or team of personnel each of whom has the ability and authority to perform the responsibilities described in subdivisions ( b ) to ( d ), inclusive. The mortgage servicer shall ensure that each member of the team is knowledgeable about the borrowers situation and current status in the alternatives to foreclosure process. However, by all indications, there is no person doing the quality control of Fays letter ( s ). XXXX XXXX XXXX of Fay said that the loansolutioncenter is being provided by a third party and they ( Fay personnel ) have no access to it. If XXXX XXXX XXXX or XXXX XXXX ( the referred account manager ) has no access to the third party system then who has? Per XXXX, XXXX XXXX was my account manager on XX/XX/XXXX but he was replaced by XXXX XXXX XXXX on XX/XX/XXXXaccording to XXXX. XXXX XXXX said that Fays letters are reviewed by legal team before they are sent out. 

CONCLUSION : It appears, therefore, that there are two teams involved in my application : the loansolutioncenter ( 3rd party ) which lists XXXX XXXX as my account manager and the people who answer telephone XXXX who insist that my account manager is XXXX XXXX XXXX. As of XX/XX/XXXX loansolutioncenter still lists XXXX XXXX as my account manager and although a letter dated XX/XX/XXXX says that he has a direct telephone number below, no direct number is actually provided. See file, 7-XXXX and file 1-XXXX Since loansolutioncenter sends me letters from Fay Servicing ( including those that wrongly insisted that I did not send the required docs to prove XXXX income ( see file, 6-Signed LETTER OF EXPLANATION TO FAY SERVICING_XXXX ) and the XX/XX/XXXX letter which gave a preposterous reason for Fays denial ( that I allegedly failed to submit your complete loss mitigation application at least five ( 5 ) business days before the foreclosure sale scheduled to occur on XX/XX/XXXX ) and since Fay Servicing personnel are not able to review those letters, then Fay Servicing team has no ability to perform the responsibilities described in subdivisions ( b ) to ( d ) .. ( of Civil Code section 2923.7 ) Since Fay Servicing has no access to loansolutioncenter website, it can not comply with Civil Code section 2923.7 ( e ) which says that mortgage servicer shall ensure that each member of the team is knowledgeable about the borrowers situation and current status. 
In fairness to Fay Servicing, I acknowledge receiving yesterday ( XX/XX/XXXX ) a letter from this lender dated XX/XX/XXXX which states : After a response review of your account, we have determined that an Acknowledgment of Complete Loss Mitigation Application letter was sent to you in error on XX/XX/XXXX. You may disregard this letter. A corrected Acknowledgment of Complete Loss Mitigation Application letter will be sent to you in the next 48 hours. Please accept our sincerest apologies for any inconvenience this may have caused. If you have any questions, please contact us at XXXX. 
The last paragraph of this letter is unclear as to meaning. It says, Fay does not have any recent applications for Loss Mitigation at this time. Please contact us or submit your request for assistance online, if needed. 

Sincerely, Loss Mitigation Department Fay Servicing , LLC Why is it not XXXX XXXX or XXXX XXXX XXXX writing the letter? 

Step 4 : What company is this complaint about? Fay Servicing , LLC. 

Step 5 : Who are the people involved? XXXX XXXX ( account manager? but unable to talk ), XXXX XXXX XXXX ( account manager? but unable to talk XXXX, XXXX XXXX who alleged that loansolutioncenter website is not accessible to them and that all letters from Fay Servicing are reviewed by legal team.