Consumer complaint received 2024-04-07 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Fay Servicing, LLC
State: NC

Complaint narrative:
On XX/XX/XXXX at or around XXXX pm EST borrower contacted Fay Servicing advising unemployment hardship seeking assistance from Loss Mitigation Specialist XXXX XXXX. XXXX advised XXXX may not be an option on an FHA loan. Advised to call back the following Friday XX/XX/XXXX. Called back on XX/XX/XXXX at or around XXXXXXXX XXXX EST spoke with XXXX XXXX XXXX who advised the file was not completely transferred acknowledged account status and asked had borrower " welcome letter '' been received, then noted one had not been sent. Advised to wait a few days to call back on the status of loss mitigation transfer from XXXX XXXX. Borrower returned a phone call from XXXX at Fay Servicing on XX/XX/XXXX who advised she was just calling to welcome to Fay Servicing but could not in fact speak to borrower due to there being an attorney on file. Advise there was no attorney as counsel had been released from responsible duties on XX/XX/XXXX and ALL PARTIES had been notified via pacer prior to XX/XX/XXXX. XXXX provided sealed federal court order via email to XXXX at XXXX who advise would forward to customer support to update records within XXXX days. Borrower subsequently file complaint with Texas Attorney General citing prohibition and inaccurate billing. On or around XX/XX/XXXX at XXXX EST borrower received an abrasive phone call from a XXXX XXXX XXXX with Fay Servicing borrower advised the call was being recorded. XXXX advised the account had been updated to to reflect no attorney and asked if the borrower had any questions. Borrower asked what was the current balance, the investor on file, and the status of the unemployment hardship. XXXX XXXX used condescending tone when replying with questions rather than providing answers. XXXX XXXX advised Fay services individual investors and should be found on the welcome packet. She state she would need time review account and would call back to provide answers to questions asked. XXXX XXXX never provided accurate information as inaccuracies can be found. ( please see attached ) and below. XXXX XXXX advised Fay Servicing had received ALL information needed to correctly process loss mitigation request dating back to XX/XX/XXXX. However, FAY SERVICINGXXXX There appears to be a direct violation of the HUD agreement, CFPB procedures, and a lack of quality control around FAY SERVICING processes and FHA procedures involving borrowers whose hardship is clearly defined as UNEMPLOYED. Please READ below and provide the appropriate resolution to the imminent issue brought before RUSHMORE SERVICING on or around XX/XX/XXXX dating back to XX/XX/XXXX. FHA GUIDELINES : The federal guidelines clearly state in ( Title XXXX ) The Mortgagee may offer the Borrower an Informal or Formal Forbearance prior to reviewing the Borrower for a XXXX Recovery Home Retention Option. If the Borrowers financial hardship is due to unemployment regardless of occupancy status, the Mortgagee MUST OFFER the SFB-Unemployment to eligible Borrowers PRIOR to reviewing the Borrower for a XXXX Recovery Home Retention Option. The Mortgagee must ensure all requirements for a Special ForbearanceUnemployment are met except for the occupancy requirement and the Defaulted Mortgage Status. The Mortgage must meet the following conditions at the time the Mortgagee approves the SFB-Unemployment Option : - be no more than 12 months due and unpaid ; and not be in foreclosure, or foreclosure action has been suspended or canceled. 

- Cleared of having NO delinquent debt ( mortgage in default or imminent default CAN NOT be considered delinquent non-tax federal debt ) - HAMPS are SUSPENDED and NO HAMPS of any kind can be offered until after XX/XX/XXXX. 

- Partial Claim requires the ability to resume monthly payments at current rate or less given there is verified continuous income at the time of consideration to support the resumption of monthly payments within 30 days of signed agreement. 

- SFDMS disposition AB67 and AR98 SFB NOT AR98 PARTIAL CLAIM.

Company response to consumer: Closed with explanation