Chicago-based special servicer Fay Servicing reported Tuesday that its 2012 annual revenue grew 250% over the previous year.

The increase occurred while the firm is also expanding its market share in the mortgage servicing business.

Fay Servicing attributes the growth to an increase in business volume from existing customers and incentive fees from pay-for-performance deal structures.

"Last year was an exciting year for us from a growth perspective and we pride ourselves on being able to maintain a strong business while also helping borrowers," said Ed Fay, chief executive officer of Fay Servicing. "We are committed to educating borrowers to help them make the best financial decisions and believe we will increase the number of borrowers that avoid foreclosure in 2013 with our mitigation efforts."