Consumer complaint received 2024-11-27 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: Fay Servicing, LLC
State: FL

Complaint narrative:
XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX Fay Servicing and XXXX XXXX  Subject : Concern Regarding Mortgage Fraud and Request for Documents Dear Fay Servicing and XXXX XXXX, We hope this letter finds you well. We are writing to express our deep concern regarding mortgage fraud related to our mortgage account XXXX XXXX Loan Number XXXX Fay Servicing Loan Number XXXX Since the initial purchase of our home in XXXX, This loan has been sold and serviced now by XXXX different lenders in only 3 years. 

XXXX. XXXX XXXX  XXXX. XXXX XXXX XXXX XXXX. XXXXt XXXX. Fay Servicing During the life of the loan it was initially serviced by XXXX XXXX. No payments were ever reported to the credit bureau by this company. We experienced no issues related to payments being posted correctly and no payments were submitted late. 

Once the loan was transferred to XXXX XXXX XXXX, a company that has been found to engage in fraudulent business, we repeatedly were told that payments were not being paid in full and therefore payments would not be applied to the balance resulting in late fees and a report to the credit bureau of a 30 day late payment immediately prior to the loan being transferred to XXXX in XX/XX/XXXX. The last unapplied payment sent to XXXX was for XX/XX/XXXX. We are aware that XXXX has had many complaints and allegations of fraud which include not applying payments correctly and legal action is being pursued by several entities. We will be submitting a complaint and request for investigation to the following entities : https : //www.myfloridalegal.com/mortgage-fraud/mortgage-fraud https : //www.fbi.gov/video-repository/newss-mortgage-application-fraud/view https : //www.consumerfinance.gov/complaint/ https : XXXX https : XXXX XXXX  : ~ : XXXX % XXXX % XXXX % XXXX % XXXX % XXXX % XXXX % XXXX % XXXX. 

In XXXX of XXXX when the loan was transferred to Shellpoint servicing we were assisted by a very helpful customer service rep who explained that the amount owed was for XXXX and also XXXX. He noted that there was a payment in a holding account that had not been applied. He stated he would request that it be applied correctly post the recent transfer from XXXX. He confirmed at the end of the call that the account was current and the next regular monthly payment was due on XX/XX/XXXX. 

We explained to the customer service rep that we were reporting XXXX for chronic assessment of late fees on payments that were actually received on time. This call should be on record at XXXX for your review. At the close of the call I reported concerns regarding the misapplication of payments and the errors leading to the false reporting of a late payment ( 30 days ). It was also reported to the XXXX credit bureaus in XX/XX/XXXX. XXXX has at this time accepted the complaint and removed the late payment reported by XXXX as not accurate for XXXX of XXXX. 

In XXXX we received a new notice from Fay servicing indicating that the account had once again been transferred to a new company after being serviced by XXXX for only XXXX month. Our next payment due for XXXX was due on XX/XX/XXXX. The only amount that should have been due was the regular monthly payment. 

However, when the statement was received at our home it indicated that we owed not only XXXX months totaling {$4600.00} but also an additional {$2500.00} in interest for a total amount due of {$7200.00}!!! 

When we called to determine how this was possible we were told to " disregard '' the interest but the customer service rep insisted that we owed XXXX months payments which is inaccurate. He then instructed us to reach out to XXXX. 
At the time of the loan transfer to XXXX, the original statement indicated that we owed for XXXX and XXXX ONLY. This was paid and we were told the account was current. We were NEVER told that any monies were still owed from XXXX which is when the loan was owed by XXXX. 
When we called Shellpoint to understand how it is possible the loan was transferred to Fay Servicing with inaccurate balance information, we were told that the payment made during the Shellpoint customer service call in XXXX was applied to an outstanding XXXX payment that was not paid to SLS which is not accurate. In addition to it not being accurate, it is illegal to collect monies from any entity for payment toward a debt on a statement and apply the payment to another " debt '' that was not reported or being collected at that time. The initial statement from XXXX did not indicate ANY balance due for XXXX so how can you collect the money and apply it to a XXXX payment that is reportedly overdue but wasn't even accounted for on ANY statements. 

We have observed many irregularities that raise red flags regarding the integrity of transactions with the companies servicing this loan. We take this matter very seriously and believe it is crucial to address these issues promptly to avoid any potential repercussions. 

We kindly request the following : XXXX. Please send a copy of payment history on record of all payments paid to XXXX at the time of the transfer of the loan to XXXX. 

XXXX. Please send a copy of the promissory Note and all documents transferred at the time this loan was purchased from both XXXX and XXXX. 

XXXX. Please send a new statement reflecting the accurate amount owed. We owe for XXXX and XXXX only. 

At this time we owe XX/XX/XXXX and also XX/XX/XXXX ONLY. A statement reflecting this accurate amount would be appreciated as we have this matter thoroughly investigated and seek legal action and representation. Given our ongoing stressful experience with requesting our payments be applied correctly We will not submit ANY payments at this time given the erroneous statement ( XXXX ) issued. When we called Fay Servicing to explain the concerns regarding the alleged amount owed on the initial statement we were told to " disregard '' the interest charge of over $ XXXX on the original statement. The customer service rep then confirmed that although that could be disregarded, he insisted that we still owe for XXXX months ( XXXX and XXXX ) which we do not. He advised that we contact XXXX directly because XXXX has no record of payments for XXXX or XXXX. 
XXXX is a fraudulent company. Companies who purchase fraudulently managed loans and attempt to collect monies that were not applied, that company is now participating in their fraud. 
We are asking that XXXX XXXX provide a new statement immediately reflecting what is actually owed and not what is owed according to a fraudulent company that doesn't apply submitted payments. We plan to pursue this investigation to the fullest extent of the law. 
Thanks in advance for your attention to this matter. 

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - ATTN : BBB XXXX CO FAY SERVICING CONSUMER FINANCIAL PROTECTION BUREAU XXXX XXXX We are asking that XXXX Services for XXXX THIRD time to provide a new statement immediately reflecting what is actually owed and not what is owed according to a fraudulent company that doesn't apply submitted payments. We plan to pursue this investigation to the fullest extent of the law. 

RE : FAY SERVICING ACCOUNT XXXX This correspondence is being sent to confirm that I, XXXX XXXX XXXX owner of the property located at XXXX XXXX. XXXX XXXX, XXXXXXXX XXXX  XXXX, received correspondence from Fay Servicing dated XX/XX/XXXX to my home on XX/XX/XXXX and the correspondence indicates that review of loan records indicates that on XX/XX/XXXX XXXX XXXX XXXX XXXX over the loan referenced in the original complaint. 

SLS as we know underwent transformation in the following year after facing multiple lawsuits for fraudulent business practices with the most recent class action lawsuit being filed XX/XX/XXXX. Please see attached for your reference in the zip file. 

XXXX serviced this loan from XX/XX/XXXX to XXXX of XXXX. Multiple times payments were submitted on time and in full however XXXX would NOT apply the payment fully and XXXX to the account holder would have monies in an account where the monies had not been applied only to have a reason to report the payment as late. Once I realized this fraudulent practice was occurring given as a homeowner for over 10 years I have NEVER experienced issues with submitting payments on time hence reflected in my credit history and my ability to qualify for these loan amounts in XXXX. I have no access to SLS account to send any statements to reflect what was paid on time and will not allow any companies to place the burden of proof on me to do so given that when my concern was taken to the credit bureau ( XXXX ) the dispute was changed by XXXX to reflect payments were in fact ERRONEOUSLY reported late or not paid. The last payment that was made to XXXX was XX/XX/XXXX. ( See credit report XXXX files in zip file confirming that XXXX contacted SLS after not XXXX BUT XXXX disputes regarding their misreporting and not applying payments and they were BOTH changed. ) Therefore when the account was then bought by XXXX the mortgage due was for XXXX and XXXX. On a recorded line I spoke to a representative explaining how elated I was that my account would now be serviced by XXXX because I have NEVER since having my mortgage account with Shellpoint which also originated at the time of the purchase of this property had any issues with accurate reporting. This call was recorded and can be reviewed. I indicated that working with XXXX had been a nightmare and that their company is blatantly robbing individuals and this customer service rep made a comment that confirmed that was XXXX of the reasons they were going out of business on a recorded line. He told me he saw my XXXX payment was in the system and " unapplied '' but had not been applied. He assured me it would be applied to the XXXX payment and he also took the XXXX payment as well on a recorded line. In addition the original statement that was sent to my home for payment to XXXX DID NOT REFLECT ANY MONIES OWED FOR XX/XX/XXXX. It is fraudulent to collect monies on a recorded line indicating that they will be applied to the balance owed that is reflected on the statement but then apply them to a " balance owed '' that is not reflected on the statement. 
XXXX XXXX The correspondence received to my home on XX/XX/XXXX from Fay Servicing confirms in writing that the payment that was removed from the unapplied funds on XX/XX/XXXX during my call with the Shellpoint Rep was in fact applied to the XX/XX/XXXX payment. It is fraudulent to collect monies and ask for payment authorization for what is reflected on a statement and then apply them to another loan payment that was due to the previous servicing company and NOT inform the payer where their monies are being applied. 

XXXX XXXX indicates that on that call the monies were transferred from the unapplied account and I paid the remainder of {$55.00} on XX/XX/XXXX which was used to complete the XX/XX/XXXX installment. This should not have been applied to an installment that was found to be falsely reported as not paid or late and has been changed by XXXX. Failure of XXXX to communicate this to XXXX is a major problem however I have now shared correspondence in the zip file that is important for Fay servicing to note that is being collected even though the credit bureau investigated this false information reported to XXXX and removed it. 

Furthermore it was not reflected in the original statement sent to me. Also your review of what occurred on the call is missing additional information. On that day I also paid the full amount due for my mortgage in excess of {$4000.00} and that payment was applied appropriately. The call ended with the next payment being owed for both the XXXX and Mortgage account in XXXX for XX/XX/XXXX payment. 

Not once was I EVER informed that the payment being moved from the unapplied account was being applied to the payment that was not actually owed to the fraudulent company that is SLS. I confirmed with the agent that everything was now up to date which he confirmed. 

I then submitted a payment for XX/XX/XXXX on XX/XX/XXXX for the full installment due in XXXX as reflected on the statement and in the account online which of course I no longer have access to prove. However I have added a copy of my bank statement showing both payments paid. The account did not reflect that any money was past due to XXXX when the XX/XX/XXXX installment was made and it did not EVER indicate that any payment I submitted was applied to an old installment falsely reported as unpaid in XXXX of XXXX to fraudulent SLS. 

In addition I want to inform you that when XXXX was taken over by XXXX I had a VERY difficult time accessing the HELOC account because the merge of the XXXX accounts i.e. my already established mortgage account with Shellpoint and the newly transferred XXXX was NOT seamless. As I attempted to log in I was only able to see the mortgage account. I called to report this as well on several occasions to ensure it was addressed. 

To date XXXX XXXX is fraudulently reporting the following information that is being investigated by XXXX and XXXX XXXX XXXX The HELOC was serviced by XXXX from XXXX of XXXX. That is incorrect and although I have a mortgage account with Shellpoint that has been serviced since XX/XX/XXXX, XXXX did NOT service the HELOC before XX/XX/XXXX. Therefore XXXX should not report payment credit history for a loan that was not serviced by them at the time of the reported payment or nonpayment. Furthermore if XXXX does report the payments that were issued to XXXX during the reporting period because XXXX is now the company owner, then the reported payments should reflect the results of the dispute that found XXXX to have misreported a late payment. There are XXXX disputes for both XXXX and XXXX that resulted in XXXX removing the late payment BUT Shellpoint is still reporting a late payment for XX/XX/XXXX when XXXX was not the loan servicer and that is an error that is currently causing my XXXX XXXX to be nearly XXXX points lower than XXXX. 

XXXX. XXXX reported that the payment for XXXX was paid and applied however there is no report of payment for either XXXX or XXXX on the XXXX and XXXX report. If the document that Fay servicing has now sent reporting that XXXX collected a payment for XX/XX/XXXX installment and XX/XX/XXXX installment then why are those payments not being reported to the credit Bureau? It appears as though the data listed is from XXXX which indicates that XX/XX/XXXX was late or missed and XX/XX/XXXX was paid on time. XXXX has again removed the report of any late payments because that was fraudulent reporting and SLS removed it. 

XXXX. XXXX is still reporting to the credit Bureaus that the loan is being serviced by them and not reporting any payments since XXXX! In addition it is being reported that a payment already found to be removed due to a credit investigation is still being reported. I have reported all of this to the consumer financial protection bureau, XXXX, and XXXX. XXXX did not service this loan since XXXX, the XX/XX/XXXX installment was paid as was XXXX and XXXX is a fraudulent company communicating erroneous information and clearly XXXX has not been made aware of the removal of their false reporting and is still sharing false information which is unacceptable. 

Please Be Advised of the FACTS : XXXX. Since servicing the loan in XX/XX/XXXX it became glaringly obvious that XXXX was attempting to scam consumers and I reported it multiple times on a recorded line. I disputed their fake fraudulent tactics with XXXX and the XXXX credit report reflects that the installments that they attempted to claim were not paid or late were removed from the report and I was found to be correct. XXXX received all installments from me and all payments were paid through XX/XX/XXXX. 

XXXX. There is no statement in the records that reflects that XXXX was to apply any payments from a reported nonpayment in XX/XX/XXXX from the fraudulent company XXXX. It is fraudulent to collect monies from any entity and apply the authorized payment to some other non disclosed amount of owed monies. I am not in possession of ANY statement ever issued informing me that monies taken were being applied to XX/XX/XXXX. That is illegal. 

XXXX. As of XX/XX/XXXX XXXX has XXXX fraudulently reporting to the credit bureaus since XX/XX/XXXX the HELOC account now owned by Fay Servicing XXXX XXXX by them since XX/XX/XXXX which is also inaccurate information. XXXX is currently reporting XX/XX/XXXX installment as paid late or unpaid even though XXXX found through investigation XXXX did in receive payment on time. It is illegal and false reporting information for XXXX to indicate servicing the XXXX since XX/XX/XXXX. This is been formally reported and is currently being investigated by XXXX and XXXX. 

On XX/XX/XXXX XXXX XXXX confirmed that the loan will now be serviced by their company after only 2 months of being serviced by XXXX. Fay Servicing has not reported being the owner or new servicing agent to the credit bureaus based on my review. However XXXX is still fraudulently reporting to XXXX and XXXX that they are servicing the loan and have been since XXXX which is false. 

I will not submit any payments to Fay Servicing if their accounting continues to reflect the trickle down of PROVEN fraudulent business practices. I am fully aware that loans are purchased by different companies because by law debt collection for these contractual agreements can not extend beyond XXXX years. 

So therefore all of these servicing companies sell loans to each other and collect money that was never originally loaned by them. The sale of promissory notes and lender information is not complicated to follow and I have followed it for years. HOWEVER, when a new servicing company purchases a loan, my recommendation is to service your customers with fair and honest business practices and do not attempt to collect monies that reflect the fraudulent business practices that the previous company reported. 

When I repeatedly contacted XXXX nearly XXXX months ago now asking for a new statement that reflects what is truthfully owed i.e. XXXX, XXXX, and XXXX installments for XXXX, I was dismissively told that according to XXXX documents Shellpoint applied the XX/XX/XXXX installment to a past due XX/XX/XXXX installment and therefore I owe XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and in addition XXXX added on over {$2000.00} fee as well. 

When asked what this was for I was told " don't worry about that ''. I was instructed for payments to any companies that are attempting to fraudulently collect debts from a company that has been already investigated and found to not appropriately apply funds and has had to pay out those monies in lawsuits. 

I will not submit any payments as I do not trust the process for any companies that are selling loans although it is legal and not keeping accurate documentation of payments applied and also having ongoing current misreporting to XXXX additional credit bureaus at this time. 

I have reported this as well to the XXXX XXXX XXXX and filed an official complaint. I have also submitted XXXX separate complaints to investigate why XXXX is providing false reporting servicing for this account that XXXX serviced this loan since XX/XX/XXXX. 

Over XXXX days ago a request was made to XXXX XXXX submit payments posted and receive an explanation as to why XXXX XXXX would have been informed that any money was due for XXXX when it is not. We have received no answer to this as of now. 

In simple terms we are asking for the removal of the additional XX/XX/XXXX payment that was inaccurately reported to the credit bureau by XXXX. We are asking that you send a revised statement that includes payment owed for XX/XX/XXXX XX/XX/XXXX and XX/XX/XXXX as soon as XXXX is the third official request from myself and the additional property owner XXXX XXXX to submit an accurate statement of what is owed at this time in accordance with investigation results that you can review. 

Specialized Loan Servicing, XXXX ( XXXX ) has been involved in several lawsuits related to mortgage fraud, including : -Unlawful mortgage assessment -A class action lawsuit was filed against SLS for retroactively assessing fees and interest on second mortgages. The plaintiffs alleged that XXXX violated the Fair Debt Collection Practices Act ( FDCPA ). 
-False credit reporting XXXX XXXX XXXX a {$2.00} XXXX judgment against XXXX after the company reported a bankruptcy on his credit report for over 100 days. The bankruptcy was actually filed by an ambulance company in North Carolina, and XXXX ignored information from its vendor that indicated this. 
-Negligent bookkeeping -A couple from XXXX, XXXX filed a lawsuit against XXXX after XXXX company added over a quarter of a XXXX dollars to their mortgage balance. The couple alleged that XXXX 's negligence led to their bankruptcy and the short sale of their home. 
-Fraudulent insurance In the case of XXXX v. XXXX XXXX XXXX, XXXX XXXX the plaintiffs alleged that XXXX fraudulently placed expensive insurance on their property to secure a lender 's collateral. The plaintiffs claimed that this caused a false default on their loan, which led to foreclosure proceedings, harassing phone calls, and false credit reporting.

Company response to consumer: Closed with explanation