Consumer complaint received 2024-03-18
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Fay Servicing, LLC (OH)

On XX/XX/year>, we had to hire XXXX XXXX to force Fay Servicing to execute a loan modification to lower our 7 % mortgage interest rate. 

Our mortgage had been with XXXX XXXX XXXXXXXX XXXX who initiated the loan modification to reduce the interest rate vs refinancing. They then put us into forbearance during Covid-19, they assured us they would continue the loan modification when the forbearance expired, lowering the interest rate yielding a lower monthly payment. They sold our mortgage to Fay Servicing before the forbearance expired, assuring us that Fay Servicing would continue the loan modification, lowering the interest and monthly payment. They assured us we were in good standing and no payments are required until the loan modification was put into place, and that all missed payments would be tacked onto the end of the mortgage. Payments would then resume at the new " lower '' rate. 

Fay Servicing requested information for the loan modification along with an application, we provided all the information requested. Weeks later, they requested additional information, then again, more information. We were assured we were in good standing and more information was needed to complete the loan modification. 

We then recieved a denial letter and the court papers for the foreclosure lawsuit in XXXX XXXX XXXX. 

XXXX XXXX had us sign over authorization so they could act in our behalf, that led to a new applicatioin and supporting documents. As time passed, we had offers to rent to buy the house, along with other purchase offers. 

Fay Servicing finally provided us the loan modification as we had a buyer sign the purchase agreement. Fay Servicing raised the interest rate to 7.75 %, and offered a trial payment period with monthly payments of {$1400.00}. If we did not accept this offer, they would proceed with the foreclosure to steal our house. 

On XX/XX/year>, the purchase agreement had been signed and money was in escrow with the title company. I spoke with our Fay Servicing account manager, XXXX XXXX. He took the contact information for XXXX XXXX of XXXX XXXX XXXX XXXX, he was to provide her the mortgage payoff amount as she was now acknowledged and approved as an authorized agent. 

On XX/XX/year>, I spoke with XXXX XXXX of XXXX XXXX XXXX, she was never given the payoff amount, when she called XXXX XXXX XXXX Fay Servicing, he refused to give her the payoff amount, telling her she was not an authorized agent. 

On XX/XX/year>, I contacted ( emailed ) XXXX XXXX, XXXX XXXX, and XXXX XXXX of the Ohio Attorney General. XXXX XXXX had to contact Fay Servicing and opposing council as they tried to push the foreclosure lawsuit in court, siting that I refused to accept their 7.75 % interest rate loan modification. 

Fay Servicing then provided us the payoff amount and Judge XXXX XXXX dismissed the case as XXXX XXXX  again filed a motion to proceed with the foreclosure, motion was denied as MOOT, case dismissed without prejudice, final court costs assessed to XXXXXXXX XXXX