Consumer complaint received 2025-08-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: Fay Servicing, LLC
State: WA

Complaint narrative:
My mortgage servicing was transferred from my prior servicer to Fay Servicing effective XX/XX/XXXX ( as stated in Fay Servicings own correspondence ). I had sufficient funds ready since XX/XX/XXXX to pay off my mortgage in full and was simply waiting for the new servicers payoff quote. 

The prior servicer emailed me on XX/XX/XXXX, to inform me of the upcoming transfer date. However, Fay Servicing did not send me any welcome letter or account information until it mailed a Welcome Letter dated XX/XX/XXXX, from Texas. I did not receive this Welcome Letter until late XXXX and it arrived together in the same mail delivery as a XX/XX/XXXX statement and delinquency/late fee notice dated XX/XX/XXXX. 

Both the XX/XX/XXXX statement and the XX/XX/XXXX delinquency notice were generated before Fay Servicing was even the official servicer ( effective date XX/XX/XXXX ). Sending a delinquency/late fee notice within 60 days of a servicing transfer also appears to violate RESPA ( XXXX XXXX. XXXX ( d ) ). This timing strongly suggests that the mailing of these critical documents was delayed or batched, depriving me of any meaningful opportunity to make my XXXX payment or request a payoff earlier in the month. Had I received the Welcome Letter when it was dated ( XX/XX/XXXX ) or earlier, I could have acted immediately and avoided any XXXX interest. 

As soon as I received the Welcome Letter and account number, I created my Fay Servicing online account and submitted my first payoff request on XX/XX/XXXX the earliest possible date given their delayed mailing. However, Fay Servicing did not respond to my payoff request at all until I called on XX/XX/XXXX, to follow up. Only after my call did a representative finally email me the payoff quote. 

When I pointed out that this delay was entirely on their side and that I should not be charged interest beyond my requested payoff date, the representative instead warned me that late fees could be charged if I did not pay soon. This was not only unhelpful but also misleading, given that RESPA prohibits assessing late fees or reporting delinquency within 60 days after a servicing transfer. 

Despite these facts, Fay Servicing is attempting to charge me interest for the full months of both XXXX and XXXX. 

Charging interest for XXXX is unreasonable because the sole reason I could not pay off the loan in early XXXX was Fay Servicings failure to provide timely account information and payoff access. 

Charging interest for the full month of XXXX is also improper. Under the XXXX XXXX rule ( TILA Regulation Z XXXX ( c ) ( XXXX ) ), full month interest charges on residential mortgage payoffs are prohibited for loans originated after XX/XX/XXXX ; my loan originated in XX/XX/XXXX, so only per diem interest through my XX/XX/XXXX request date should apply. 

The combination of : - Delayed and untimely mailing of required account information ( Welcome Letter dated XX/XX/XXXX but received late XXXX, together with XX/XX/XXXX statement and delinquency notice ), - Issuing billing and delinquency notices before the effective transfer date of XX/XX/XXXX, - Failure to respond to a timely payoff request until XXXX days later, - Sending an improper delinquency notice within the XXXX protection period, - Attempting to impose XXXX interest caused solely by their own delay, and - Attempting to impose prohibited full month interest for XXXX, has caused me significant and unnecessary financial harm, despite my good faith efforts to pay off the loan as soon as possible.

Company response to consumer: Closed with explanation