Consumer complaint received 2023-01-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC
State: FL

Complaint narrative:
RESPONDENTS FAILURE TO TIMELY INVESTIGATE NOTICE OF ERROR UNDER 12 C.F.R. 1024.35 ( e ) Pursuant to 12 C.F.R. 1024.35 ( e ) ( 3 ) ( i ) ( A ), a servicer must comply with the requirements of 12 C.F.R. 1024.35 ( e ) ( 1 ) not later than seven days ( excluding legal public holidays, Saturdays, and Sundays ) after the servicer receives the notice of errors for errors asserted under paragraph ( b ) ( 6 ) of 12 C.F.R. 1024.35. ( Emphasis added ).

12 C.F.R. 1024.35 ( e ) ( 1 ) provides that ; 1 ) a servicer must respond to an NOE by either correcting the error or errors identified by the borrower and providing the borrower with a written notification of the correction, the effective date of the correction, and contact information, including a phone number for further assistance ; or by 2 ) conducting a reasonable investigation and providing the borrower with written notification that includes a statement that : i ) the servicer has determined that no error occurred ; ii ) a statement of the reason or reasons for this determination ; iii ) a statement of the borrowers right to request documents relied upon by the servicer in reaching its determination ; and iv ) information regarding how the borrower can request such documents, and contact information, including a phone number, for further assistance. 

On XX/XX/2022, the Consumer XXXX XXXX XXXX ( the Consumer ) submitted a notice of error ( NOE ) to RESPONDENT Fay Servicing , LLC ( RESPONDENT or FAY ) in which RESPONDENT received on XX/XX/2022 at the address that it has designated to receive such NOEs. The XXXX XX/XX/2022 XXXX was due to RESPONDENTs failure to investigate the XXXX previous NOE. A copy of the Consumers XX/XX/2022 XXXX ; and a copy the United States XXXX services XX/XX/2022 delivery confirmation of same, are attached hereto as Exhibits A and B, respectively. 
On XX/XX/2022, RESPONDENT provided an untimely response to XXXX XX/XX/2022 XXXX. Clearly, RESPONDENT waited approximately 21 days ( excluding weekends and holidays ), before it decided to respond to Consumers XX/XX/2022 notice of error not 7 days as required by Regulation X, 12 C.F.R. 1024.35 ( e ) ( 3 ) ( i ) ( A ). A copy of RESPONDENTs XX/XX/2022 untimely response to the Consumers XX/XX/2022 XXXX, is attached hereto as Exhibit C. 
Despite receiving Consumers NOE on XX/XX/2022, XXXX XXXX intentionally failed to provide a timely and reasonable investigation of Consumers XX/XX/2022 NOE. More specifically, XXXX failed to timely investigate and/or correct any of the errors asserted in the Consumers XX/XX/2022 Inquiry, and to do so within the applicable timeframe of seven ( 7 ) business days of receipt of such NOE- as required by 12 C.F.R. 1024.35 ( e ) ( 3 ). Instead, RESPONDENT, during those seven business days, simply ignored the 7-day dead line to investigate the XXXX XX/XX/2022 NOE. 
As a result of FAYs violations alleged herein, Consumer has suffered actual damages in the form of emotional distress, anxiety, the constant fear of losing her home, worry, embarrassment, and anguish because of the ongoing failures of the RESPONDENT to timely address Consumers XX/XX/2022 XXXX.

Company response to consumer: Closed with explanation