The Attorney General of the Commonwealth of Masschusetts has hit the Chicago-based dodgy mortgage servicer, FAY SERVICING, with a $3.2m penalty, for multiple violations of state laws on unnecessary foreclosures. Fay failed to make a good faith effort to assist borrowers saddled with unfair loan terms. It intentionally and deliberately prevented borrowers from obtaining needed loan modifications, resulting in foreclosures that never should have been filed.
We have previously documented case after case where Fay's conduct with respect to borrowers whose accounts were assigned to it for servicing, was conducted in bad faith. with the obvious intent of foreclosing upon homeowners, many of whom then lost heir homes through Fay's misconduct.
Fay must now:
(1) Pay Massachusetts a $500,000 civil penalty.
(2) Homeowners affected by Fay Servicing misconduct will receive $2.7m forgiveness of principal for eligible loans.
(3) Make major changes to its business practices.
Readers who wish to review the complete 27-page Assurance of Continuance may email me for a copy of the pdf document at: miamicompliance@gmail.com
Readers who have not read our previous 14 articles on Fay Servicing here on Kenneth Rijock's Financial Crime Blog, may access them at: https://rijock.blogspot.com Use the white search box at the top of the website enter enter Fay Servicing to see all the articles.
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