Fay Servicing, LLC
On August 21, 2024, the Bureau issued an order against Fay Servicing, LLC, a residential mortgage servicer headquartered in Tampa, Florida. On June 7, 2017, the Bureau previously issued an order against Fay Servicing. In this action, the Bureau found that Fay Servicing violated the Bureau’s 2017 order, Regulation X, (which implements the Real Estate Settlement Procedures Act), the Homeowners Protection Act, Regulation Z (which implements the Truth in Lending Act), and the Consumer Financial Protection Act of 2010 (CFPA). The order required Fay Servicing to pay $3 million in consumer redress, a $2 million civil money penalty, and to invest $2 million to update its servicing technology and compliance management systems. It also imposed a number of injunctive provisions, including relating to its servicing technology and compliance management systems.
On July 1, 2025, pursuant to its authority under 12 U.S.C. § 5563(b)(3), the Bureau terminated the order and waived any alleged noncompliance therewith. Fay Servicing fulfilled several obligations under the order, including, among other things, paying a civil money penalty of $2 million and paying $3 million to the Bureau for Bureau-administered consumer redress, which the Bureau will distribute to consumers consistent with the terms of the order.
Related documents
Order Terminating the Consent Order