Fay Servicing to pay $1.15M to settle CFPB’s dual tracking claims

Fay Servicing will pay $1.15 million in borrower restitution and fines to settle Consumer Financial Protection Bureau allegations that it engaged in so-called foreclosure dual tracking and failed to keep borrowers informed about loss mitigation efforts.

Chicago-based Fay Servicing violated Regulation X of the Real Estate Settlement Procedures Act and other consumer protection laws by taking “prohibited foreclosure actions against certain borrowers” and failing “to have policies and procedures reasonably designed to provide required foreclosure protections,” the CFPB alleged in a consent order Wednesday.