Consumer complaint received 2024-01-17 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: ID

Complaint narrative:
In XX/XX/XXXX, I purchased a home through XXXX XXXX  for {>= $1,000,000}. I put 20 % down, establishing an original loan balance of {$920000.00}. After making the first couple of payments to XXXX XXXX  on time, the loan was transferred to Fay Servicing. That is when the nightmare begins. 

Fay Servicing is either completely incompetent or is intentionally malicious in their business practices. 

This company has a proven record of incompetence. The CFPB has levied significant fines against them. The Attorney General for the State of Massachusetts has held them financially accountable. And more and more individual consumers are beginning to take legal action against them. And yet the continue to operate in this market .... 

Today, I received a letter in the mail from Fay Servicing telling me that my mortgage is behind and that I face foreclosure. I have paid off 78 % of my {>= $1,000,000} loan in the first 8 months since loan origination. I have not missed a single payment. And because of Fays complete incompetence, I have to deal with the new stress of them threatening to foreclose on my home. I will seek a legal solution if this CFPB option does not meet resolve every single one of my complaints. This company must be held accountable. 

The following facts apply to my case : - I was not properly notified of the transfer and where to make my payments, so my first payment to Fay Servicing was late, but within the established grace period when a loan is transferred. 
- I made every payment for the remainder of XXXX  on time and included extra within the payment to be applied to the principles for the payments up through XX/XX/XXXX. Fay properly recorded these payments, to include the payment made for XX/XX/XXXX. 
- I made an additional significant payment towards principle on XX/XX/XXXX for {$560000.00}. 
- In XXXX, I paid Fay servicing a fee of {$250.00} for a request to have my loan recast to account for the significantly lower principle and a new amortization and payment schedule. 
- In XX/XX/XXXX, I received approval on the recast, completed the required paperwork, and returned it to Fay Servicing- I made the basic payment for XX/XX/XXXX for {$6200.00} per the original terms as the loan had not yet been recast - I made every payment on time and prior to the XXXX of each month using the Fay Servicing website for electronic payments- As of XX/XX/XXXX, the outstanding balance on my loan, per the attached Mortgage Statement, was {$330000.00} - The Fay website is currently showing the loan delinquent from XX/XX/XXXX, even though they have accepted and processed payments for XXXX, XXXX, and XX/XX/XXXX- I logged into the Fay system to make my XX/XX/XXXX payment, but the system was not accepting online payments see the attached artifact - In early XX/XX/XXXX, I called in several times to discuss this error and the fact that my balance had grown from {>= $1,000,000} to now be {$340000.00}. They had apparently taken my last 3 payments and unapplied them, even though they were paid on time and cleared my checking account each month. 
- As I clearly didnt trust Fay Servicing or have any faith in their competence, I made my XX/XX/XXXX payment, for the amount they revaluated per the recast of {$2400.00} plus additional principle for a total payment of {$6000.00}. I made this payment over the phone to a CSR rep named XXXX on XX/XX/XXXX and was provided a confirmation number of # XXXX. The payment still has not been withdrawn from my account I am convinced this is Fays attempt to try to state I was late on a payment, but I also video-taped my call with the representative, so I have evidence to support the payment was made on time. 
- For some reason, Fay has taken my payments from XXXX of last year and reversed them. They are holding them in what they are classifying as a suspense balance of {$27000.00}, and per their website, these funds are not used to credit principle or interest- And then today in the mail I received notification from Fay that my mortgage is behind. The letter, included with this complaint, is threatening and completely unfounded. 
- ************* - As if the above documentation isnt proof enough of Fay Servicings incompetency, they have also failed to pay my escrowed property taxes by the due date. The due date for taxes in my county is XXXX XXXX Fay sent payment on XXXX XXXX, causing me to realize late payments and penalties.

Company response to consumer: Closed with explanation