Is Fay Servicing LLC An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at Fay Servicing LLC with other lenders for mortgages with similar borrower characteristics:

Interest Rate: higher than average (+0.07%)
Loan Related Closing Costs: higher than average (+$769)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Fay Servicing LLC originated 480 mortgages, a national market share of 0.0%. It was most active in GA (0.0% market share), NJ (0.0% market share), and DC (0.0% market share).

On average, Fay Servicing LLC’s interest rates were higher than those of comparable mortgages at other lenders (+0.07%).1The comparable mortgages control for Fay Servicing LLC’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages. Its average total loan related closing cost was $4907, which was higher than those of comparable mortgages at $4138, with a difference of +$769. Overall, we estimate that Fay Servicing LLC tends to be an expensive lender, with a cost-adjusted-rate difference of +0.15% compared to comparable mortgages at other lenders.2Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate. Therefore, we recommend comparing your rate and fees with at least a few other lenders before signing with Fay Servicing LLC.

Fay Servicing LLC originated Conforming mortgages for new home purchases. It also originated Conforming and FHA mortgages for refinances. We breakdown its interest rate and total loan related closing cost on by each of the mortgage types it originated below:

Home Purchase Mortgages from Fay Servicing LLC compared to other lenders

Conforming
Interest Rate Difference+0.04%
Loan related Closing Cost Difference+$1288
Cost Adjusted Rate Difference+0.15%

Based on the table above, Fay Servicing LLC is more expensive than other lenders for Conforming purchase mortgages.

Mortgage Refinancing from Fay Servicing LLC compared to other lenders

ConformingFHA
Interest Rate Difference+0.06%+0.17%
Loan Related Closing Cost Difference+$772+$428
Cost Adjusted Rate Difference+0.14%+0.20%

Based on the table above, Fay Servicing LLC is more expensive than other lenders for Conforming and FHA mortgage refinance.

Other information about Fay Servicing LLC:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: CHICAGO, IL, 60605

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Footnotes

Footnotes
1The comparable mortgages control for Fay Servicing LLC’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages.
2Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate.