Mortgage lender · Chicago, IL · LEI 549300D0H09HSURFXA20

Fay Servicing review: approval odds, rates and grade (2025)

Fay Servicing earns a D, weaker than most small mortgage lenders. It turned down 57.0% of the applications it decided on in 2025, which ranks in the 1st percentile for approval odds. Its median loan was priced 0.31 points above the average prime offer rate, ranking in the 45th percentile on pricing. Compared against 1,883 small mortgage lenders using 2025 HMDA filings.

613Applications2025
16.6%Originatedof applications
57.0%Decision denial ratenational 22.6%
6.88%Median ratenational 6.63%
$30MLoan volume34 states

Fay Servicing at a glance, 2025

Every figure is from the lender's own HMDA filing. "vs national" compares with all lenders combined.

25.8%Denial rate (all applications)+7.79 pts vs national
57.0%Denial rate (decided applications)+34.45 pts vs national
16.6%Origination rate-41.39 pts vs national
31.7%Withdrawn by applicant
23.2%Closed for incompleteness
6.88%Median interest rate+0.25 pts vs national
0.31Median rate spread (pts over APOR)+0.05 pts vs national
$265,000Median loan amount
$8,119Median total loan costs
$112kMedian applicant income
70%Median loan-to-value
0High-cost (HOEPA) loans

How the D grade breaks down

Each component is a percentile rank among 1,883 small mortgage lenders. Higher is better. Components the lender does not report are left out and the weights redistributed.

Approval oddsdecision denial rate, weight 45%

1st57.0% denied

Pricingmedian rate spread over APOR, weight 30%

45th0.31 pts

Processwithdrawn + incomplete share, weight 15%

0th54.8%

Closing coststotal loan costs ÷ loan amount, weight 10%

18th3.06% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20232171464.2%4.6%8.06%$42M
20242101644.3%4.6%7.68%$46M
202561310225.8%57.0%6.88%$30M

What Fay Servicing lends

Applications by purpose and loan type in 2025, with the denial rate for each. A lender's mix explains a lot of its headline rate: HELOCs and FHA loans are denied far more often than conventional purchase loans.

By loan purpose

Home purchase 30 5% · 10.0% denied
Refinance 290 47% · 22.8% denied
Cash-out refinance 293 48% · 30.4% denied

By loan type

Conventional 501 82% · 20.8% denied
FHA 97 16% · 51.6% denied
VA 15 2% · 26.7% denied

Also: 0 home-equity lines, 0 reverse mortgages, 0 manufactured homes, 133 investment properties.

Why Fay Servicing denies applications

Primary reason reported for each of the 158 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Debt-to-income ratio 77 49%
Credit history 55 35%
Collateral 18 11%
Other 5 3%
Incomplete application 3 2%

How these reasons compare nationally →

Who gets approved at Fay Servicing

Decision denial rate by applicant profile. Groups with fewer than 20 applications are omitted.

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k101982.0%
$50k – $100k1482069.2%
$100k – $150k922045.0%
$150k – $250k81665.0%
Over $250k128860.0%
Applicant ageApplicationsOriginatedDecision denial rate
25–3439544.4%
35–44881261.8%
45–541401965.1%
55–641602166.2%
65–741061270.2%
Over 7431277.8%

Where Fay Servicing lends

34 states and 308 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
California1021716.7%7.41%#438
Florida90731.1%6.50%#503
Texas70832.9%6.75%#636
Virginia542825.9%7.43%#367
Illinois39820.5%6.56%#497
Georgia34535.3%6.25%#508
North Carolina22422.7%6.44%#517
Indiana19231.6%6.25%#468
Pennsylvania18322.2%6.25%#616
Tennessee18027.8%#551
New Jersey17211.8%7.69%#469
Ohio13523.1%6.75%#581
Louisiana12041.7%#360
Michigan12341.7%6.75%#500
Alabama10220.0%6.44%#484
Maryland10060.0%#474
South Carolina1000.0%#531
Minnesota820.0%6.37%#500
Colorado7214.3%6.50%#553
Missouri7014.3%#543
Arkansas600.0%#381
Kansas6050.0%#401
Kentucky5220.0%6.81%#491

Frequently asked questions

Fay Servicing denied 57.0% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 1st percentile of small mortgage lenders.

The most common reason Fay Servicing gave in 2025 was "debt-to-income ratio", cited on 48.7% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

The median interest rate on loans Fay Servicing originated in 2025 was 6.88%, and its median rate spread over the average prime offer rate was 0.31 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 5% of its applications were for home purchases, 95% for refinancing (including cash-out), and 0% for home improvement or other purposes. By loan type: 82% conventional, 16% FHA, 2% VA.

Every figure on this page comes from the Home Mortgage Disclosure Act (HMDA) Loan/Application Register published by the CFPB, which lenders are required by federal law to file. We add the grade and the comparisons; we do not add facts.

About this data. HMDA data is published once a year by the CFPB. The current release covers applications acted on in calendar year 2025. Figures describe applications the lender acted on, including loans it later sold. Interest rates and costs are medians on originated loans only; some depository institutions are exempt from reporting pricing fields, which is why a few cells read "—". MortgageGrades is not affiliated with Fay Servicing. Data sources · Methodology