Consumer complaint received 2025-04-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Fay Servicing, LLC
State: IL

Complaint narrative:
XXXX. New Claims and Demands : Demand for certified allonge and note endorsements. 

Challenge to the nominal {$1.00} mortgage assignment, citing violations of Illinois law ( XXXX XXXX XXXX ) and federal statutes ( 31 U.S.C. 5118 ( d ) ( 2 ) ). Case precedents ( XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) show such assignments typically invalidated as fraudulent conveyances. 

Request for complete documentation including Pooling and Servicing Agreement ( PSA ) for securitization verification.

Reference to trust-specific structural risks and underwriting deficiencies detailed in the XXXX XXXX XXXX documents. 

XXXX. Documentation and Verification Issues : Mortgage assignment at nominal value of {$1.00} is flagged as fraudulent under Illinois law due to lack of reasonable market value, thus invalid.

Fay Servicing is accused of having a conflict of interest, required by Trust prospectus to advance delinquent principal and interest payments, incentivizing aggressive, potentially improper debt collection.

3. Standing and Securitization : Entities involved allegedly possess only partial or participation interests in the note, lacking full assignment required by Uniform Commercial Code 3-203 ( d ), thus precluding lawful enforcement or foreclosure.

4. Trust-Based Enforceability Issues : Loan explicitly identified in Trust documents as business-purpose, thus not subject to consumer debt treatment under FDCPA or RESPA unless officially reclassified XXXX 

Trust documentation reveals severe underwriting weaknesses, explicitly noting loans underwritten without borrower income or employment verification. 

Such non-income-verified, investor-purpose loans should not target consumer enforcement or personal liability claims. 

XXXX. Servicing Violations and Consumer Protection : Fay Servicing misrepresents business-purpose loan as consumer debt, explicitly violating FDCPA 1692e, which prohibits false or deceptive collection practices. 

XXXX failed to provide mandatory disclosures under RESPA ( 12 CFR 1024.33 ) and TILA ( 12 CFR 1026.39 ), constituting actionable regulatory violations.

6. Legal Demands and Rights Assertion : Immediate suspension of collection and foreclosure pending resolution.

Demand preservation of evidence, explicitly warning any spoliation of documents will trigger civil actions, sanctions, and judicial remedies.

Assertion that Fays unauthorized use of the loan as an asset in securitization, without borrower consent or disclosure, violates transparency obligations and consumer protection laws.

7. Validation of Debt Not Provided : Fay Servicing has failed to provide : Original promissory note with endorsements.

Certified chain of title. 

Contractual obligations between XXXX XXXX XXXX and current trustee. 

Properly reconciled accounting history. 

8. Forensic Audit Conclusions : Expert audit identifies loan enforcement as fraudulent, noting entities acquired less than full rights under UCC 3-203 ( d ).

Recorded assignment five years post-origination and absence of ownership proof invalidates enforcement actions.

Audit findings supported by affidavit confirm disputes on legitimacy and enforcement authority, suggesting potential slander of title.

9. Expanded Trust Document Issues : Trust explicitly comprises predominantly business-purpose, non-income verified loans.

Servicer obligation to advance delinquent payments to investors is highlighted as a clear conflict of interest.

{$1.00} assignment flagged explicitly in prospectus as susceptible to invalidation under fraudulent conveyance laws. 

XXXX. Slander of Title and Potential XXXX Violations : Warning issued that continued assertion of claims without legal validation constitutes slander of title under Illinois law and may implicate XXXX violations. 

XXXX. Notice of Rights and Evidence Preservation : Reservation of all rights under RESPA, FDCPA, XXXX, XXXX, and Illinois XXXX XXXX explicitly stated. 

Formal notice issued requiring preservation of all evidence related to this dispute, with explicit warnings regarding the consequences of evidence spoliation. 

XXXX. Qualified Written Request ( QWR ), FDCPA Dispute, and TILA Disclosure Demand : Immediate dispute of debt validity under RESPA, FDCPA, and TILA regulations, demanding all collection and foreclosure activities cease until full lawful validation is provided.

13. Legal Grounds for Dispute : Lack of proper standing and chain of title documentation.

Fraudulent {$1.00} assignment transaction.

Failure to provide required transfer disclosures per RESPA/TILA.

Improper and undisclosed securitization without consent.

Clear conflict of interest for servicer due to financial obligations to the trust.

14. Specific Document Demands : Original note and allonges ( UCC compliance ).

Complete chain of title documentation.

HUD-1 Settlement Statement or Closing Disclosure.

Loan sale, participation, or securitization agreements.

Detailed accounting of payoff amounts claimed.

Mandatory disclosures required under RESPA and TILA.

Servicing agreement between Fay Servicing and Trust.

15. Remedies and Escalation Notice : Warning issued that failure to comply will result in formal complaints to the CFPB, Illinois Attorney General, OCC, and potentially the U.S. Attorney General.

Any continued collection activity or foreclosure action before debt validation constitutes regulatory violations and will lead to immediate escalation.

Company response to consumer: Closed with explanation