WILL THE US DEPARTMENT OF JUSTICE NOW GO AFTER FAY SERVICING FOR ABUSE OF COVID FUNDING REGULATIONS ?

 

If you were paying close attention to President Biden's State of the Union address, you heard him say that he has directed the Attorney General, Merrick Garland, to investigate and prosecute all businesses that have abused the special COVID funding that was made available to American companies, to insure that they would not fail during the pandemic, and thereby to preserve the jobs of their employees. This money was designed to save distressed businesses from failing; unfortunately, some unethical companies that had no financial need to avail themselves of this funding took advantage of the program to draw cash that was intended for the needy, and not the greedy. This was never the intent of the program, and the President wants the offenders charged and justice served in those cases.

We have previously pointed out that the controversial mortgage servicing firm, FAY SERVICING LLC, from Chicago, which has been repeated accused by homeowners of sharp lender practices verging on criminal activity, received a major COVID ( CARES Act) loan, notwithstanding its reportedly solvent nature, meaning that it did not need the Federal funding.  

Public documents revealed a $10,000,000 loan to Fay, which we reported on in 2021, in our article Client Comments about the Performance of Controversial Mortgage Processor Fay Servicing are Brutal and Disturbing. We trust that the DOJ will follow the urging of President Biden, and open a criminal investigation of this loan, and the circumstances surrounding how a company that apparently did not need funding to survive managed to qualify for, and receive, this huge sum. Please, AG Garland, see that justice is done in this, and any other case where unqualified American businesses gamed the system, and received money intended only for companies that needed it to survive, not receive excess operating capital.