Consumer complaint received 2025-03-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Fay Servicing, LLC
State: FL

Complaint narrative:
A mortgage we are responsible for was sold/ transferred to Fay Loan Servicing for processing. We have paid the full monthly amount billed for our mortgage on-time or early every month for over 9 years ( Originated in XXXX ). Again, we have never been late with a payment.

Fay does an annual escrow review as most companies do... When we are provided the new amount, we automatically apply that amount in our bank account for electronic payment. ( NOTE : I have been advised that Fay does NOT accept electronic payments- so my bank has to print and send a manual check. These checks are drawn against my account typically several days before the end of the month and are due to Fay by the XXXX ). 

Fay repeatedly mis-applies funds against my account. I get a statement from Fay showing the breakdown of the payment against Principal, Interest, Escrow. Yet Fay routinely does not apply the funds according to the statement. They apply monies to escrow whenever they perceive a shortage - and do so without notifying me.

I receive a letter from them ( this year that letter was dated XX/XX/XXXX - but arrived well after that ) - however Fay had, without consent or notice, applied payment to escrow and put the balance of my payment in " suspense '' starting in XXXX, and continuing through XXXX and XXXX. NOTE : The letter I get in XXXX states that I have a new amount to pay to rectify the escrow and provides a start date - no other action necessary. The most recent letter states I will begin to pay that amount for the payment due XX/XX/XXXX. 

However Fay had already altered payments in XXXX and XXXX, applying funds other than as indicated on my monthly statement- this is evident in the transaction history. 

This also triggers account default notices, late payment notices, phone calls and other bothersome communication - all of which is in appropriate because Fay arbitrarily applies my payment however they choose and not in accordance with my statements or the communications they send me. 

I am not certain, however I am concerned that this mis-application of funds may affect the amount of interest that Fay is charging... 

I have had to call Fay several times every month, they put me on hold for over 20 minutes on more than one occasion, each call requires a minimum of 30-45 minutes to resolve issues ( that Fay created ).

I also note that Fay- in my opinion- has some of the worst processing logistics I have ever seen. They have had my check ( from the bank ) hung up in their own mail room on more than one occasion... I have mortgages with multiple service providers and Fay is by far the worst to deal with on multiple fronts.

Fay recordings invite you to provide a brief survey at the end of calls by pressing a number on the keypad. I have likely made about 20 calls to Fay this year and have opted to take the survey every time. I have never been given an opportunity to take their survey ( by staying on the line... ). Another enormous waste of time.

Company response to consumer: Closed with explanation