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Fay Servicing fined $1M for illegal foreclosure practices

Fay Servicing has been fined over a million dollars for what the Consumer Financial Protection Bureau calls illegal foreclosure practices. During the investigation, it was discovered that the servicing agency was not upfront with its clients about the choices that they had to prevent foreclosure. Fay was found to have been moving forward with foreclosures against borrowers who were looking for help in saving their homes. Servicing agencies such as Fay work with clients in Florida and all over the country.

The CFPB ordered Fay Services to pay as much as $1.15 million to those consumers who were victims of the service's illegal practices. As a part of the settlement, the servicing agency will receive no other penalties, and they will not be monitored in the future. The goal of the settlement, according to the CFPB, was to put the matter in the past and move forward.

There were over 85,000 borrowers who used Fay Servicing in the last 10 years. A mortgage servicing agency is required to make sure that borrowers are informed of any and all options, rights and requirements pertaining to their request for foreclosure relief. Protection from foreclosure during the application process is also required in most cases. Fay Services failed to meet those requirements, according to the settlement.

In Florida, and in other states, those who are facing foreclosure have several options available to help them save their home. A bankruptcy lawyer is a good option for those who are looking for ways to stop foreclosure proceedings. The bankruptcy attorney has the knowledge to properly inform the client of all of their choices, and guide him or her in finding the best option for his or her situation.

Source: housingwire.com, "CFPB hits Fay Servicing with $1.15 million fine for illegal foreclosure practices", Ben Lane, June 7, 2017

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