Business Profile

Mortgage Lenders

Fay Servicing LLC

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Complaints

This profile includes complaints for Fay Servicing LLC's headquarters and its corporate-owned locations. To view all corporate locations, see

Customer Complaints Summary

200 total complaints in the last 3 years.
64 complaints closed in the last 12 months.

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Submit a Complaint

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

Initial Complaint
Date:09/16/2024
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I continuously try to contact customer service and it keeps going to ******. I have been hung up on from all the people from the africans. I need to speak to customer service and its not right that I am forced to speak overseas. When I request to speak to the US, like *** told me I can request, they keep hanging up on me and its not professional.There should be a direct number I can call in the ** when I need help..
Business Response
Date: 09/18/2024
Please see the attached response.
Initial Complaint
Date:09/11/2024
Type:Order Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
*************** You serviced 3 loans for us prior. One property had a compulsory flood charge placed on from your company in the amount of $2258.08 for ********* and again for the year 2022 to ************. However the property was not in a flood zone until December 2022. Even after the december 2022 the elevation of the property was higher than the flood zone and the required elevation certificate and confirmation from fema was provided.We would seek immediate reimbursementfor these policies that was unlawfully placed on our account.
Business Response
Date: 09/18/2024
Please see the attached response.
Customer Answer
Date: 09/19/2024

Complaint: ********, loan number 0686245929

I am rejecting this response because the property is not located in the floodzone. Please find attached a loma certificate that dates clearly the map change was December 2022 and additionally that this property is not in a floodzone at all and any such imposed policies are deemed illegal under florida. Please provide a refund

Sincerely,

******* **********
Business Response
Date: 09/25/2024
Please see the attached response.
Customer Answer
Date: 10/01/2024

Complaint: 22267806

I am rejecting this response because we are still waiting on our refunds despite providing elevation certificate, loma from fema.

Sincerely,

******* **********
Initial Complaint
Date:08/29/2024
Type:Order Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
This company validated a loan on a house I do not own. This loan belongs to my ex husband. I did not sign any paperwork with this company. I had no knowledge of this company until I got life lock. This house was granted to ex husband in divorce and was quitclaim deed to him.
Business Response
Date: 09/03/2024
Please see the attached response.
Initial Complaint
Date:08/26/2024
Type:Service or Repair Issues
Status:
ResolvedMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I have been trying since June 30, 2024 to have my escrow refund disbursement correctly issued and have been given the run around since then. I have spoken with so many agents who were not helpful, rude and unwilling to correct the issue. The issue is on their end not mine. When I spoke with ***************************, in June he assured me I would get my refund. I got **** #********** and the pay to the order of was incorrect. I called back and suddenly I was asked to provide proof of deed ownership which was provided in 2021! I was assured again that the new check would be issued correctly and it was not. Check ********** dated July 12 was also incorrect. More calls and several weeks later three messages and requests for call back to the manager *********************** and he never called back. I got check ********** dated 7-31-2024 and it was also wrong. NO ONE IS CALLING ME BACK and when i call the 800 number, suddenly my dedicated account representative is never available. I choose call back and never get a call back. I want my refund and I demand that the check is express mailed to me or that they issue a wire transfer to me directly.
Business Response
Date: 09/03/2024
Please see the attached response.
Customer Answer
Date: 09/05/2024

Complaint: 22195736

I am rejecting this response because:
I called since every day except labor day starting on August 30 to get a status of my check. My dedicated advisor never answered or called back nor did his manager. Even after voice mails. I finally got someone on the phone at 5:45 pm on Wednesday, Sept 4th. ******. He was professional and checked all the account notes. He admonished me for having expectations of a swift respond but ,he confirmed that I submitted the quit claimant divorce decree in 2021. He was not sure why the corrected check was jot issued on the second time. The representative stated that a wire transfer would not be an option but he confirmed the check was not prepared and no one was going to call me back!

Sincerely,

**********************
Business Response
Date: 09/09/2024
Please see the attached response.
Customer Answer
Date: 09/10/2024

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is over due and understated how they prolonged the obvious on an loan that has been paid in full. Nevertheless, satisfactory to me.

Sincerely,

**********************
Initial Complaint
Date:08/12/2024
Type:Billing Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
We are under bankruptcy and our mortgage company is trying to have it dismissed so they can foreclose on us. They won't discuss the acct with us without authorization from our lawyers. The lawyers faxed authorization on August 2nd (proof attached) and *** is refusing to verify its been received. We've called them 4 times this week & have been told several different lies all culminating in: we haven't received the fax. We have emailed them the authorization and fax confirmation but they refuse to speak with us about the status of our account (which is now curent). We are being denied our rights for information regarding our account and they are trying to force us into defaulting.
Business Response
Date: 08/19/2024
Please see the attached response.
Initial Complaint
Date:08/02/2024
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I have called Fay Servicing looking for a resolution to an escrow issue related to them process my mortgage loan incorrectly. I have been trying to resolve this issue for over 3 months starting in April 2024. I have called them at least 20 times asking to speak with a manger or a escrow professional and have never received a call back. It is grossly unprofessional to treat customers in this manor.
Business Response
Date: 08/09/2024
Please see the attached response.
Initial Complaint
Date:08/02/2024
Type:Billing Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
************************** and Fay Servicing alleged that ***************** and *************************** owe and alleged debt for Account Number: ********** Property Address: *********************************************. in excess of ******** and I have filed a CFPB complaint CFPB 240329-13775802 in which Fay servicing refuses to correct erroneous billing errors.
Business Response
Date: 08/16/2024
August 16, 2024

Realty Source Inc.
***************************
Sent via BBB Portal

RE:                          Account Number:                            0050003049
                                Property Address:                           **********************************************
                                BBB Complaint Number:               22079474

Dear ***************************:

Fay Servicing,LLC (***) has received and reviewed the complaint that you submitted to the Better Business Bureau (BBB) portal on August 2, 2024, and August 14, 2024, regarding your above-referenced business purpose loan. Fays responses to the specific concerns raised in your complaint are provided below.

In your complaint, you state that you are disputing the validity and enforceability of the Note and mortgage. You state that you have not received any sworn certification, documentation, or validation and verification of the alleged debt using competent evidence, by oath or affidavit of someone with firsthand personal knowledge of the execution of an original contract and/or original instrument(s) of an alleged debt. You request billing adjustment, release of mortgage, return of all funds, proceeds,payments, principal, and accounts.

*** has reviewed your correspondence and determined that all, or part, of your request is overbroad, unduly burdensome, or irrelevant and not directly related to the mortgage loan account. *** is not required to respond to such requests.Additionally, *** will not provide any information or documentation considered confidential, proprietary, or that is not in our possession. However, *** has enclosed the following information and documentation in response to your Request for Information:

Please recall on October 9, 2019, you obtained a loan from Commercial Lender, LLC, whose address is *********************************** in the amount of $93,750.00. In exchange for the loan, you gave, as security, an interest in the subject property located at **********************************************

*** is the current servicer of the loan, and the holder of the Note is ******************************* not in its individual capacity but solely as trustee for the *** Securitization Trust 2020-INV1. Their address is *************************************

It is important to note the role of the trustee is to hold the legal title as a neutral third party until the loan is completely paid off by the borrower. Please be advised that all questions involving the administration of your loan (including questions related to payments, deferrals, modifications or foreclosures) should be directed to *** and not the trustee/investor of the loan. The trustee/investor of the loan does not have access to most information relating to the administration of your loan and will not be able to answer most loan-related questions.

As a courtesy,please find enclosed the following documents:

Fays response to **** Case Number 240329-13775802
Current Billing Statement dated August 8, 2024
Updated *** Account History

*** acquired the loan for servicing on November 2, 2019. We previously received and reviewed the complaints that you submitted to the ************************************ (****) portal on
March 28, 2024,and April 5, 2024. Upon careful review of the previous request, we determined that in accordance with the *********** Settlement Procedures Act (RESPA) &Regulation X, Fay Servicing, LLC (***) was not required to conduct a new review of the recent Notice of Error. The error(s) asserted is substantially the same as error(s) previously raised which we already researched and responded to on March 21, 2024. Specifically, you did not provide new &material information that we did not review in connection with responding to the prior Notice of Error. As such, we enclosed our previous response letter,which provides a necessary explanation. Most recently, *** received the complaints that you submitted to the ************************************ (****)on July 15, 2024, and August 2, 2024. *** provided an initial response to the **** explaining that additional research is required regarding your primary concerns; however, *** will provide a final response within sixty (60) days of the date the complaint was initially received.

Please note that the last payment was received on July 29, 2024, for the contractual installment due for July 1, 2024. Currently, the loan is contractually due for August 1, 2024. The current unpaid principal balance (UPB) is $88,362.76,with an additional amount owing of $571.84 in escrow advances. On August *******, *** assessed a late charge of $18.06, because we did not receive the contractual installment due for August 1, 2024, within the grace ******* In consideration, *** is unable to acknowledge the debt as settled and/or provide compensation as no amount is owed back to you directly nor will a release of lien be provided until the loan is paid in full. If you would like a payoff letter,please reach out to *** at the phone number below for further assistance.

If you have any questions, please contact ***************** at ************ Monday Thursday 8:00 A.M. 7:00 P.M., Friday 8:00 A.M. 5:00 P.M., and Saturday 9:00 A.M. 12:00 P.M. CST.

Sincerely,

Fay Servicing,LLC

Enclosures (3)
Customer Answer
Date: 02/18/2025

Complaint: 22079474
See Enclosed Document
I Demand that the collateral deposit be applied to the presumptive debt, That all Principal accounts be applied to all presumptive debts and other remedy as outlined in the notice of harm. Demand for All Liens to be satisfied and release of lien recorded at county recorders of deeds.

Sincerely,

***** ********
Business Response
Date: 02/26/2025
February 26, 2025

******************
***** ********
Sent via BBB Portal

RE:                          Account Number:                            0050003049
                                Property Address:                           **********************************************
                                BBB Complaint Number:               22079474

Dear ***** ********:

Fay Servicing,LLC (***) has received and reviewed the complaint that you submitted to the Better Business Bureau (BBB) portal on February 18, 2025, regarding your above-referenced business purpose loan. Fays responses to the specific concerns raised in your complaint are provided below.

In your complaint, you request that the collateral deposit and all principal accounts be applied to the alleged debt and for all liens to be satisfied/released.

After conducting a reasonable investigation, *** is unable to honor your request as the loan has an Unpaid Principal Balance (UPB) of $87,910.37 with an additional owing of $934.69 in escrow advances. The last payment was received on November 29, 2024, which satisfied the mortgage payment due for November 1, 2024. The loan is contractually past due for the December 1, 2024, mortgage payment and all subsequent payments. The loan was referred to foreclosure on February 4, 2025; however, no foreclosure sale date has been scheduled. A payoff quote was generated on February 12, 2025, and we have attached a copy of the payoff statement for reference. The total amount required to pay off the loan in full by March 5, 2025, is $97,487.90. It is important to note that no amount is owed back to you directly nor will a release of lien be provided until the loan is paid in full.

If you have any questions, please contact ***************** at ************ Monday Thursday 8:00 A.M. 7:00 P.M., Friday 8:00 A.M. 5:00 P.M., and Saturday 9:00 A.M. 12:00 P.M. CST.

Sincerely,

Fay Servicing,LLC

Enclosures (1)
Customer Answer
Date: 03/13/2025

Complaint: 22079474

I am rejecting this response because:  This account remains in perpetual and continuous dispute, and the demand that all collection activities cease immediately, in accordance with the Fair Debt Collection Practices Act (FDCPA), until the above issues are resolved to my satisfaction. See enclosed dispute letter
Desired outcome: to settle this account and provide a release/ satisfaction of lien or provide actual lawful money for assigned application

Sincerely,

***** ********
Business Response
Date: 03/21/2025
March 21, 2025

******************
***** ********
Sent via BBB Portal

RE:                          Account Number:                            0050003049
                                Property Address:                           **********************************************
                                BBB Complaint Number:               22079474

Dear ***** ********:

Fay Servicing,LLC (***) has received and reviewed the complaint that you submitted to the Better Business Bureau (BBB) portal on March 13, 2025, regarding your above-referenced Business Purpose Loan. Fays responses to the specific concerns raised in your complaint are provided below.

In your complaint, you state that you are rejecting our prior response due to the account remaining in perpetual and continuous dispute. You demand that all collection activities cease immediately, in accordance with the Fair Debt Collection Practices Act (FDCPA) until the issues are resolved to your satisfaction.

*** has reviewed your correspondence and determined that all, or part, of your request is overbroad, unduly burdensome, or irrelevant and not directly related to the above-referenced Business Purpose Loan. *** is not required to respond to such requests. Additionally, *** will not provide any information or documentation considered confidential,proprietary, or that is not in our possession. However, *** has enclosed the following documentation in response to your Request for Information:

Note with Allonge
Deed of Trust
Loan Agreement
Guaranty
Truth in Lending Disclosure
HUD-1
Loan Application
Assignments (2)

Currently, *** is unable to honor your request as the loan has an Unpaid Principal Balance (UPB) of $87,910.37 with an additional owing of $934.69 in escrow advances. The last payment was received on November *******, which satisfied the mortgage payment due for November 1, 2024. As of the date of this letter, the loan is contractually past due for the December ******, mortgage payment and all subsequent payments. The loan was referred to foreclosure on February 4, 2025; however, no foreclosure sale date has been scheduled.

*** will continue making reasonable attempts to contact you regarding the status of the monthly payment if the payment is not received by the ***** period each month. It is important to note that no amount is owed back to you directly nor will a release of lien be provided until the loan is paid in full. In that regard, we have enclosed an updated payoff statement dated March 19, 2025, for reference. The total amount required to pay off the loan in full by March 31, 2025, is $101,344.92.

If you have any questions, please contact ***************** at ************ Monday Thursday 8:00 A.M. 7:00 P.M., Friday 8:00 A.M. 5:00 P.M., and Saturday 9:00 A.M. 12:00 P.M. CST.

Sincerely,

Fay Servicing,LLC

Enclosures (10)
Customer Answer
Date: 04/17/2025

Complaint: 22079474

See attached.

Sincerely,

***** ********
Business Response
Date: 04/25/2025
April 25, 2025

******************
***** ********
Sent via BBB Portal

RE:                          Account Number:                            0050003049
                                Property Address:                           **********************************************
                                BBB Complaint Number:               22079474

Dear ***** ********:

Fay Servicing,LLC (***) has received and reviewed the complaint that you submitted to the Better Business Bureau (BBB) portal on April 17, 2025, regarding your above-referenced business purpose loan. Fays responses to the specific concerns raised in your complaint are provided below.

In your complaint, you continue to dispute the validity of the mortgage debt and request cessation of collection activity, along with a release of mortgage and refund of funds paid.

We must reiterate that this loan is a business-purpose loan and is therefore not subject to the Fair Debt Collection Practices (FDCPA) or other consumer protection statuses that pertain solely to consumer-purpose credit obligations. Notwithstanding this, *** has repeatedly provided a full validation of the debt in good faith and in effort to maintain transparency and resolve any alleged concerns.

As previously documented and now re-confirmed:

Please recall on October 9, 2019, you obtained a loan from *********************, whose address is **********************************, in the amount of $93,750. In exchange for the loan, you gave,as security, an interest in the subject property located at **********************************************.

*** is the current servicer of the loan,and the holder of the Note is *****************. Their address is **********************************.

Documents provided in prior responses, and again enclosed herewith, include:

Note with Allonge
Deed of Trust
Loan Agreement
Guaranty
Truth in Lending Disclosure
HUD-1
Loan Application
Two (2) Assignments *Please note these are the only mortgage assignments*
Payoff Statement
*** Account History

Please note, the enclosures were too large to submit through the BBB portal. Therefore, a copy of the full response is being mailed separately to your mailing address on file.

As of the date of this letter:

The Unpaid Principal Balance ("UPB") remains at $87,910.37, with an additional $934.69 in escrow advances.
The last payment received was on November 29, 2024, satisfying the November 1, 2024, installment.
The loan is contractually past due for the December 1, 2024 payment and has been referred to foreclosure as of February 4, 2025. No foreclosure sale date has been set at this time.

Despite multiple previous submissions and exhaustive responses from our office, you continue to submit materially similar complaints and disputes via multiple regulatory and consumer platforms (including the ***** OCC, SEC, and BBB). Many of these correspondences are overbroad, unduly burdensome, and include allegations or requests unrelated to the actual loan or outside our scope of obligation. We are under no legal duty to respond to such repetitive and irrelevant submissions, particularly regarding proprietary information or matters not in our possession.

We have also noted that the property appears to be an investment or rental property based on public data and online listings, which further confirms the loan's business-purpose ****************** have previously continued to make payments despite disputing the debt,which only ceased recently, suggesting possible vacancies or changes in rental income.

You have also requested that all collection activity cease, however, given the business-purpose nature of the loan, FDCPA cease-and-desist provisions do not apply. Furthermore, the loan remains contractually due, and collection efforts are lawful and necessary under the loan terms.

In summary, we consider this matter fully addressed. No further response or documentation will be provided unless new and materially different information is submitted. We reserve all rights and defenses under the law, including the right to proceed with foreclosure action should the account remain delinquent.

Fay Servicing,LLC can be reached at ************ Monday Thursday 8:00 A.M. 7:00 P.M.,Friday 8:00 A.M. 5:00 P.M., and Saturday 9:00 A.M. 12:00 P.M. CST.

Sincerely,

Fay Servicing,LLC

Enclosures (11)
Initial Complaint
Date:07/30/2024
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
Called Fay Servicing for a quote to pay off mortgage by September 2024. Lady on the phone gave me a quote of the balance that is remaining on the mortgage. Try to obtain more information from her however she HUNG up the phone.
Business Response
Date: 08/02/2024
Please see the attached response.
Initial Complaint
Date:07/26/2024
Type:Product Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I am filing this dispute on behalf of my 95-year-old grandmother (**********************************# ******). I am my grandmother's (***********************************) power of attorney. I have submitted the requested POA to Fay servicing 4 times. Every time i call they tell me I cannot receive the desire information because I am not listed on the account. I paid $1200 out of pocket for home insurance 2023-2024 not knowing it should have been paid from her escrow account. I contacted the insurance company State Farm and fay servicing. We worked out all the problem so I thought. Fay servicing failed to send payment to state farm and they cancelled my grandmother's covers. I had it re-instated. The same thing has happened again, as of today state farm has cancelled due to non-payment. This is downright ridiculous. I believe my grandmother is being taken advantage of. It is more money she has to pay out of pocket. I am seeking a refund for the year I paid out of pocket and the money to re-instate the policy.
Business Response
Date: 08/02/2024
Please see the attached response.
Initial Complaint
Date:07/19/2024
Type:Product Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
After I sold my mom&#**;s home, I had a substantial amount of money left over. I called my mortgage company to pay down my home.I asked to have a large payment put towards the principle $135,000 which was put in an expense account that I did not want.I was told I couldn&#**;t do that unless I was invited. On 7/10/24 I requested a refund and was told that it would be processed within 5 days from the 7/12/24 , aftewards I would receive a check in 5-7 days. I called again 7/19/24 and was told it had not been processed after serveral calls prior to this date, of them even telling me that it would be escalated. That I now needed to send proof that it was taken from my account, which I have now done. I have even sent via email (@***************************************** )in a written request for a refund on 7/12/24. Since this has all happened, they have now applied payments of that $135,000 towards my July & August mortgage payment, which I did not agree to. (loan # ******)
Business Response
Date: 07/26/2024
July 26, 2024

***************************
Sent via BBB Portal

RE:                          Account Number:                            0000194715
                                Property Address:                           *******************************************
                                BBB Complaint Number:               22014068

Dear ***************************:

Fay Servicing,LLC (***) has received and reviewed the complaint that you submitted to the Better Business Bureau (BBB) portal on July 19, 2024, regarding your above-referenced mortgage loan. Fays responses to the specific concerns raised in your complaint are provided below.

In your complaint, you request a full refund of the payment in the amount of $135,000.00, as you requested *** apply the full amount towards the principal balance. However, the payment was not applied as requested and some funds have been applied to the contractual installments due for
July 1, 2024, and August 1,2024.

On July 5, 2024, you called in to schedule one lump sum payment in the amount of $135,000.00. You were interested in lowering the monthly mortgage payment by having those funds applied to pay down the principal balance and *** re-amortize the unpaid principal balance (UPB) through a mortgage recast. A mortgage recast is a process by which the borrower makes a lump-sum payment toward the principal balance and the lender re-amortizes the loan to lower the monthly payment without changing the terms or interest rate outlined in the Note. If the borrower is interested in a mortgage recast with ***, a minimum lump-sum payment greater than or equal to $10,000.00 is required and the funds must be certified along with a non-refundable $250.00 servicing recast fee. Additionally,eligibility is determined internally by the ************************ upon receipt of funds or a request. *** provides notification by mail once the determination is made. If eligibility is not confirmed the $250.00 servicing recast fee will not be charged and if the borrower already submitted the fee,it will be returned.

On that same day, July 5, 2024, *** received the payment in the amount of $135,000.00 which posted to the principal balance of the loan as initially requested. However, the hierarchy of Fays payment posting process is for funds to be applied to the loans current monthly obligation of principal, interest,taxes and insurance (PITI) first, then to any escrow advances, fees (late charges/NSF fees) and corporate advances before being applied as a principal curtailment. In addition to the loans current interest-bearing principal balance, there is a non-interest-bearing second unpaid principal balance (UPB) in the amount of $30,979.70 which must be paid in full to qualify for the mortgage recast.

As a result of the payment posting hierarchy, the funds were reversed from principal on July 8, 2024, and placed into an unapplied funds account. On July 9, 2024, *** withdrew $1,438.81 in unapplied funds and applied them to satisfy the contractual installment due for July 1, 2024. On July 10, 2024, *** withdrew unapplied funds totaling $1,831.42. Of this amount, $392.61 was applied to the late charge/fee balances and $1,438.81 was applied to satisfy the contractual installment due for August 1, 2024. On that same day, July 10, 2024, *** withdrew the remaining $131,729.77 in unapplied funds and applied them to the principal balance of the loan.

*** requested the mortgage recast on that same day, July 10, 2024. However,you informed us that you were no longer interested in the mortgage recast and requested a refund. On July 15, 2024, *** reversed funds applied to principal in the amount of $131,729.77, which were placed into the unapplied funds account. Additionally, the funds applied to satisfy the contractual installment due for August 1, 2024, were reversed and placed into the unapplied funds account.

However, *** most recently withdrew unapplied funds in the amount of $133,168.58 and applied them to the principal balance of the loan. As you indicated that you were no longer interested in the mortgage recast, *** closed the request on July 24, 2024. Currently, we are limited in our abilities to honor your request for a refund, as refunds typically are not authorized unless the drafting of the payment was in error.

If you have any questions, please contact ***************** at ************ Monday Thursday 8:00 A.M. 7:00 P.M., Friday 8:00 A.M. 5:00 P.M., and Saturday 9:00 A.M. 12:00 P.M. CST.

Sincerely,

Fay Servicing, LLC

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