WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) announced June 7 that it took action against Fay Servicing, a mortgage servicer based in Chicago, for allegations of failing to provide mortgage borrowers with federally mandated protections against foreclosure.

“The bureau found that Fay violated the CFPB’s servicing rules by keeping borrowers in the dark about critical information about the process of applying for foreclosure relief,” said CFPB Director Richard Cordray. “[The] CFPB will continue to hold servicers accountable for violations of consumer protection laws.”

The CFPB specifically alleged that Fay Servicing violated mortgage servicing rules by keeping borrowers in the dark about critical information when applying for foreclosure relief and illegally launching or moving forward with the foreclosure process against borrowers applying for assistance.

Under enforcement actions given by the Dodd-Frank Wall Street Reform and Consumer Protection Act and other federal consumer financial laws, the CFPB has penalized Fay Servicing. Under the CFPB consent order, Fay Servicing must pay up to $1.15 million in consumer redress, offer borrowers opportunities for foreclosure relief and stop its alleged illegal practices.

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Consumer Financial Protection Bureau
1700 G St NW
Washington, DC - 20552

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