- The CFPB reached a settlement with mortgage servicer Fay Servicing, LLC, to resolve allegations that the company took prohibited foreclosure actions against borrowers and prevented borrowers from taking advantage of loss mitigation options in violation of the terms of a 2017 consent order, the Consumer Financial Protection Act of 2010, the Real Estate Settlement Procedures Act and implementing regulations, the Truth in Lending Act and implementing regulations, and the Homeowners Protection Act.
- According to the 2024 consent order, the company allegedly engaged in prohibited foreclosure activity; failed to properly maintain data about borrowers’ loss mitigation applications, to maintain adequate policies and procedures, and to inform borrowers how their choice of retention or non-retention loss mitigation could limit their options; improperly administered borrowers’ private mortgage insurance; and assessed excessive late fees, among other allegations.
- Under the terms of the consent order, the company must pay $3 million in consumer redress and $2 million in civil penalties, and it must invest at least $2 million to update its servicing technology and compliance management systems, among other relief.