Consumer complaint received 2025-03-19 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Fay Servicing, LLC
State: LA

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) Dear CFPB, For the past XXXX years, I have been in XXXX, during which time my monthly mortgage payments were made, along with additional payments towards the arrearage. In XX/XX/XXXX, I was approved for a no-fault XXXX  discharge. My attorney informed me that the delinquent amount on my account was {$19000.00}. The XXXX  trustee made a final payment of {$10000.00} in XXXX, and I personally mailed a check for {$9000.00}, which should have brought my mortgage account current. 

After several weeks without any updates from Fay Servicing, I contacted them regarding my account. I was informed that my payment was being returned because I did not send the correct amount. Then I asked for the correct amount, I was told it was {$12000.00} and that I needed to request a letter confirming the total, which would take approximately XXXX business days. I was also advised that any changes to the amount would be an increase of about {$400.00}. I agreed to wait for the confirmation. 

However, when I followed up XXXX business days later, I was shocked to learn that the amount due had more than doubled to over {$26000.00}. When I questioned this increase, the representative could not provide an explanation and instead suggested that I consider a quick sale since my home was already in foreclosure. I made it clear that I wanted to keep my home. They then informed me that I had until XX/XX/XXXX, to pay the {$26000.00}. 

I borrowed funds from friends and family and wired the {$26000.00} to Fay Servicing on XX/XX/XXXX. After XXXX business days, I called to confirm that the payment had been applied. I was told that it had been received, and my next payment due on XX/XX/XXXX, would be {$4100.00}. My regular monthly payment had been {$2800.00}, and this sudden increase of nearly 50 % was alarming. 

Once again, the Fay Servicing representative could not explain the reason for the increase. Additionally, I noticed that my principal balance had not changed. The representative confirmed that none of the {$26000.00} had been applied toward my principal. I requested a detailed breakdown of all my payments, but the statement provided was complex and did not clearly indicate where my funds had been allocated. 

Furthermore, Fay Servicing has refused to release the remaining {$8000.00} from my homeowners insurance payout for damages caused by the XXXX hurricane. I submitted a claim regarding this issue XXXX years ago, but no action was taken. 

I need your assistance. I purchased this home XXXX  years ago and have consistently made monthly payments of approximately {$2800.00}. Despite this, only around {$18000.00} has been applied to my principal. This situation does not seem fair or reasonable. Where have my payments been going? 

I am requesting a thorough investigation into my account. I strongly believe that Fay Servicing is overcharging me with excessive late fees and other fabricated charges. I appreciate any assistance you can provide in resolving this matter. 

Kindest regards,

Company response to consumer: Closed with explanation