Consumer complaint received 2019-02-08
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (CA)

A mortgage servicer along with a CA licensed finance lender in collusion together overcharged us the consumer {$31000.00} they attempted to disguise as default interest deferred, a default that they in essence manufactured by refusing to accept our monthly payments saying theyll only accept the full balance because their one year interest only loan had hit their maturity date. 
We now know after experiencing it firsthand their scheme is to bill the consumer the disputed amounts calling it default interest deferred which is exactly what happened in our case. And this is despite us paying them the monthly payments plus two extension fees of over {$14000.00}. The scheme involves demanding that a full 6-month extension fee of {$7000.00} be paid before they continue to accept the monthly payment we normally pay. The catch is during this time they bump up the already high interest rate from the agreed-upon 8-1/2 percent and doubled it to accrue at 17 % for months, Plus now they add additional Late fees imposed as a result of the consumer now being considered late on payments. We literally submitted the payment and they refused to draft it as they usually do from the account as they did the prior months, waiting for the delinquency they created to hit the point where they can file a NOD and hopefully take the homeowners property. 
Anyone can see after what we experienced how this pattern and practice is by design on their part to steal a homeowners property through predatory lending and unfair business practices. Or to transfer the homeowners wealth to themselves. Despite the States strict usury laws this company seems to be claiming they can charge an interest rate of 17 % disguised as default rate even after they eventually after several weeks battling with them to take the payment to avoid the account being considered delinquent they accepted our note payments along with two separate loan extension fees that undeniably brought the account out of any Default there was.

Looking over the way it all transpired it becomes clear that this is their business model - to strip away the homeowners equity. They create adefault so they can demand a usurious Default rate interest of 17 %, on top of forcing the homeowner to give them an additional {$7000.00} in extension fees.

On the phone with the banks and servicers representatives both assured me when I was making the {$14000.00} payment bringing the account current they were stopping and removing the default charges based on the payment and extension fees. 
If there was ever Any doubt or thought that I may be making up a story, how can one explain the fact that when we refid, the payoff statement they presented escrow showed {$31000.00} demanded labeled as Default Interest Deferred. And Magically they revised that down to {$20000.00} conveniently after our mortgage broker and escrow raised questions concerning not just the amount, but the validity and legality of the high " default interest '' charges. 
Anyone would suspect they reduced the amount by {$10000.00} thinking wed be like others they pulled this XXXX on and go-away. And theyve got some nerve when weve already paid them over {$130000.00} in interest ONLY and excessive fees on an 8.5 % loan for just over 18 months foolishly trying to steal another {$20000.00} on top of it! 
From all Ive garnered its almost certain this can be a handsomely rewarding for an attorney with the foresight and willingness to look into these practices and see how many consumers theyve taken advantage of and caused to lose their home or their equity. Wed much prefer an honest hardworking attorney get paid the almost XXXX XXXX XXXX -- {$20000.00} theyre attempting to steal form us on top of {$130000.00} they got from us in a year and a half we had the loan.