Consumer complaint received 2020-01-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Fay Servicing, LLC
State: NY

Complaint narrative:
Official Mortgage Fraud Complaint Letter The complaint letter has been forwarded to your office by the State of New York Office of The Attorney General. ( See Attached letter received Dated XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NY XXXX Account # : XXXX XXXX Phone : XXXX XX/XX/XXXX Bureau of Consumer Frauds and Protection Office of the Attorney General XXXX XXXX XXXX XXXX XXXX, NY XXXX XXXX : XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, NY XXXX XXXX XXXX XXXX : XXXX XXXX XXXX XXXX  Not In Its Individual Capacity But Solely As Trustee For XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX NY XXXX XXXX XXXX XXXX : Fay Servicing , LLC XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX IL XXXX XXXX Dear XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX 1. This complaint concerns the improper actions of a purported lender and foreclosing party, XXXX XXXX XXXX XXXX, Not In Its Individual Capacity, But Solely As Trustee For XXXX XXXX XXXX ( XXXX ) and their New York attorneys, XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX. at XXXX XXXX, XXXX, as well as XXXX XXXX and XXXX XXXX who hold supervisory positions at Fay Servicing , LLC each of which arises out of XXXX  foreclosure proceeding against me, concerning the property located at XXXX XXXX XXXX, XXXX XXXX, New York, to which XXXX claims a secured interest. 
2. I have conducted an extensive exam, audit, review and accounting of the mortgage loan from its inception through the present date that provides evidence of breach of contract undertaken by XXXX XXXX and its predecessors. Certain signatures have been forged on various documents. The blank endorsement on the subject promissory note is based on forged signatures rendering the alleged mortgage void. I have compelling evidence that the loan terms were misrepresented to me at the time of application and further obscured and/or modified prior to signing. To independently examine the alleged mortgage note, I have hired a private investigator. On a sworn affidavit, the private investigator,  XXXX XXXX, conducted a thorough examination, audit, review and accounting of the mortgage loan from its inception through the present date. ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) 3. Furthermore, the attorneys at XXXX XXXX, XXXX, are aiding and abetting XXXX misconduct on this fraudulent foreclosure and negligent on their fiduciary responsibility to uphold the law in good faith. As a point of reference, I have reason to believe, many former attorneys, such as, XXXX XXXX  and XXXX, XXXX, and XXXX, XXXX, XXXX, XXXX XXXX XXXX, XXXX, just to name a few, whom were representing the Bank resigned over the last 10 years after they have discovered their clients deceptive and fraudulent foreclosure practices, and yet with disregard XXXX XXXX, XXXX knowingly continues to represent an illegitimate foreclosure matter. XXXX XXXX XXXX, XXXX. the first attorney representing the Bank have come under fire for their foreclosure-related legal work. He was disbarred, sanctioned and fined by the governing agencies for mortgage fraud, abuses in their foreclosure related legal work that were outrageous, ludicrous and disingenuous. The attorney generals investigation found that the XXXX XXXX  routinely brought foreclosure proceedings without taking appropriate steps to verify the accuracy of the allegations or the homeowners rights to foreclose. The XXXX XXXX  attorneys repeatedly verified complaints in foreclosure actions stating, among other things, that the plaintiff was the owner and holder of the note and mortgage being foreclosed, when, in many securitized loan cases, the XXXX XXXX did not have documentary proof that the plaintiff was the owner and holder of the note and mortgage. Attorney General XXXX XXXX XXXX required the XXXX XXXX to pay {$4.00} XXXX to New York State in penalties, costs and fees, which was used in part for programs that offer assistance to homeowners facing foreclosure or victims of predatory lending practices. It is strikingly glaring that the attorneys at XXXX XXXX, XXXX are engaging in exactly the same predatory practices. 
4. Moreover, I have continuously been given the runaround by Fay Servicings employees on countless occasions. I have talked to several agents whom have provided me with different responses to the same questions I have inquired on, but to no avail. I have been intentionally re-routed to the wrong department or individuals countless of times to hamper my ability to seek the answers I was looking for. This complaint letter should serve, once and for all, to get the proper coordination and cooperation of the Attorney Generals office to pursue and punish the deceptive business practices and illegal acts of fraud with all parties involved. Please see attached Exhibit A of my email correspondence to Fay servicing dated XX/XX/XXXX. 
5. As a result, I am disputing the validity of the current alleged debt they claim I owe. By debt I am referring to : a. The principal balance claimed owed ; b. The calculated monthly payment ; c. Past arrears ; c. Calculated escrow payment ; d. Any fees claimed to be owed and any trust or entity they may represent 6. In addition, XXXX has at no time established a verifiable chain of assignments or chain of possession of the promissory note to support its claim of having an interest in a purported loan. Rather, XXXX claims its interest in the purported loan is grounded in its possession of the purported promissory note, since it alleges the note was converted into a bearer instrument upon being endorsed in blank. 
7. However, XXXX claim to an interest in the loan is and has always been illegitimate due to the endorsement in blank being fraudulently made. 
8. I have undertaken an exhaustive lengthy investigation into the source of XXXX claimed interest that has conclusively established that the blank endorsement evident on the subject promissory note is a total fraud. See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. 
9. The blank endorsement on the XX/XX/XXXX promissory note, putatively endorsed by a Vice President of XXXX claimed predecessor in interest, XXXX XXXX XXXX ( XXXX ), named XXXX XXXX, could not possibly have been done by Ms. XXXX. See, annexed hereto as Exhibit C, the Adjustable Rate Note, dated XX/XX/XXXX. According to Ms. XXXX sworn testimony in another case, her employment with XXXX had been terminated in XX/XX/XXXX ; i.e., well before the XX/XX/XXXX note at issue here ( See, annexed hereto as Exhibit D, excerpt from the deposition testimony of XXXX XXXX, at pp. 57, 64-65, 70. ) 10. Consequently, Ms. XXXX unequivocal deposition testimony established that she could not possibly have endorsed the Note as Vice President of XXXX. 
11. According to the private mortgage-fraud expert investigator, Mr. XXXX, the stamp of XXXX  signature has most likely been wielded by XXXX  itself years after XXXX  had ceased to exist ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX, XXXX at ). 
Despite the foregoing evidence being presented to XXXX and its attorneys, they have neither disputed or controverted it, with XXXX and its attorneys simply ignoring it in its litigation papers. In addition, in a letter I have received from Fay Servicing on my inquiry for information to substantiate their ownership, Fay Servicing asserted Neither Fay nor the owner of the loan was involved in the origination of the mortgage loan and we are unable to determine the circumstances around the origination of this loan other than as it appears in public records and the servicing file. Please be advised that we will not provide any information or documentation considered confidential or proprietary or that is not in our possession. Please see attached Exhibit F- 2nd page letter dated XX/XX/XXXX. The documents received from Fay substantiates the fraud the private investigator discovered. Also, for your reference, the Consumer Financial Protection Bureau had investigated Fay Servicing for engaging in all sorts of illegal foreclosure practices on thousands of homeowners for many years. ( Please see attached Exhibit E- Article on sanctions and fines implemented by the CFPB. ) 12. Even as it ignores evidence proving the blank endorsement of the promissory note is fraudulent, XXXX, through its purported predecessor in interest, XXXX XXXX XXXX, XXXX. [ Bank ] claims that, by Purchase and Assumption Agreement dated XX/XX/XXXX [ Purchase and Assumption Agreement ], it was the assignee of the purported subject loan from the FDIC ( ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) However, while XXXX claims sole ownership of the Mortgage and Note via the Purchase and Assumption Agreement with the FDIC, there is no schedule or inventory of assets listing any specific XXXX mortgage loan acquired by the Bank in connection with the Purchase and Assumption Agreement, much less than one that purportedly affects me or the property ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ). 
13. Indeed, not only is a schedule or inventory of assets not included in the Purchase and Assumption Agreement which appears in this record ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX ) but no such schedule or inventory of assets has ever been produced or disclosed by the Bank in any litigation ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) 14. In fact, from testimony given in a Florida case by a witness, Mr. XXXX XXXX, who was formerly employed by XXXX, that while there was a schedule contemplated in certain documents related to the Purchase and Assumption Agreement, [ t ] hat schedule has never materialized in any form ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) In the context of that same Florida litigation, the Bank served a discovery response which explicitly acknowledged that it does not have a ledger of the specific loans acquired in the FDIC purchase [ of XXXX assets ] ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) 15. Likewise, although the Purchase and Assumption Agreement required the Bank to provide the FDIC with a post-closing statement accounting for, XXXX XXXX, all loans * * * owned by the XXXX XXXX  as of the date it was closed by the FDIC ( See, annexed hereto as Exhibit A, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX XXXX no such statement was ever provided to the FDIC by the Bank ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) In fact, a FOIA request from the FDIC for this information revealed that [ n ] o responsive records have been located ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) 16. The record shows that the reason for the conspicuous failure to account for the mortgage loans owned by XXXX on its closing date is that by the time XXXX  was shut down, most if not all residential mortgage loans originated by XXXX  were sold and securitized by XXXX  via two subsidiaries which established the qualified special-purpose entities [ i.e., usually trusts ] that XXXX had used to securitize its risky mortgage loans and effectively remove them from XXXX  books ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) 17. In short, there is no evidence establishing that the purported Mortgage and Note at issue here were on the books of XXXX  on the date its assets were sold to XXXX predecessor in interest by the FDIC under the Purchase and Assumption Agreement, dooming its claim to an interest in the purported loan via assignment ( See, annexed hereto as Exhibit B, the Expert Affidavit of XXXX XXXX, dated XX/XX/XXXX. ) 18.  In addition, the attorneys at XXXX XXXX XXXX, are expected to perform a reasonable Pre-filing investigation. Federal Rule 11 states in part that attorneys must not file suit without evidentiary support for the allegations contained in the complaint. This action was filed with a defective affidavit due to forged endorsements and fraudulent signatures, and no witness was ever entered into the court record. Their attorney in this case failed to prove there was any contract and failed to file the original contract and an accounting of the money trail in the court record. The foreclosure action filed against the property was filed with a defective affidavit. This meritless affidavit is obstructing the administration of justice in this case, and a reasonable pre-filing investigation would have uncovered the fatal flaws listed here that prevented the court from having jurisdiction to hear the dispute. The fact the attorney signed an affidavit testifying he/she is now a witness in the fraudulent case. 
19. Therefore, XXXX has no interest in the purported loan either by assignment or as a holder of the note in blank. 
20. XXXX, Fay Servicing and XXXX XXXX, XXXX have incurred irreparable damage and harm to me as follows : a. A fraudulent foreclosure complaint was filed against me ; b. A fraudulent lis pendens was filed against the property in connection with the fraudulent foreclosure complaint. 
c. I have been forced to expend attorneys fees and costs to defend the fraudulent foreclosure filed by XXXX, Fay Servicing and its attorneys at XXXX XXXX, XXXX  ; d. My-self and my family have been injured by the tremendous stress caused by the fraudulent foreclosure prosecuted by XXXX, Fay Servicing and its attorneys. This wrongful foreclosure has had a devastating effect on my family, along with the constant worry of being displaced and left homeless. This has left myself and my family members with intentional inflection of emotional distress, as well as negligent inflection of emotional distress f. XXXX has caused negative references to appear on my credit report based on its fraudulent claim to an interest in the loan. 
g. XXXX, Fay Servicing and its attorneys have undertaken a myriad of predatory practices, breach of contract, along with unfair deceptive business practices in this wrongful foreclosure Wherefore, I ask the Attorney General to respectfully pursue the following relief : 1. A judgment against XXXX, Fay Servicing, and its attorneys acknowledging the invalidity of any interest it may claim in the purported loan ; 2. A judgment against XXXX, Fay Servicing and their attorneys that requires it to correct the real property records to reflect that any interest it may have had in the purported loan is satisfied ; 3. A judgment against XXXX, Fay Servicing and its attorneys that requires it to pay me damages in the amount of {$5.00} XXXX and allows me to recover all costs I have been forced to expend on attorney fees, court costs, pain, suffering, and emotional distress caused by this wrongful foreclosure. 
4. A judgment requiring XXXX to remove all negative credit references that it has caused to damage my credit report, either directly or indirectly ; 5. A judgment providing all civil penalties, fees and fines against XXXX and its attorneys ; 6. Pursuance of all civil causes of action against XXXX, Fay Servicing and its attorneys ; 7. Prosecution of all crimes that XXXX, Fay Servicing and its attorneys may have committed by its forgoing actions ; 8. XXXX, Fay Servicing and its attorneys must cancel the foreclosure proceeding, rescind the alleged mortgage and pay punitive damages. 
9. And all such other and further relief the Attorney General deems just and proper to pursue. 



Sincerely, /s/ XXXX XXXX P.S . This complaint letter has been forwarded to your office by the State of New York Office of The Attorney General. ( See Attached letter received XXXX XX/XX/XXXX )

Company response to consumer: Closed with explanation