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Home > Blogs > Ohio politics > Archives > 2009 > November > 05 > Entry
AG Cordray, Texas mortgage servicing company sue each other
Attorney General Richard Cordray and a Texas-based mortgage servicing company on Thursday, Nov. 5, sued each other in separate but related lawsuits.
Cordray filed suit in Cuyahoga County Common Pleas Court in Cleveland against American Home Mortgage Servicing, Inc., alleging violations of the Ohio Consumer Sales Practices Act. The company services more than 12,000 subprime and prime mortgage loans in Ohio, including the Dayton area, Cordray’s office said.
Separately, the company sued Cordray in Franklin County Common Pleas Court in Columbus seeking a declaration that the company’s servicing practices comply with Ohio law. The suit seeks to dispute “unsupported allegations made” in a letter from Cordray’s office to the company before the suit against the firm was filed in Cleveland.
The suit filed against the company alleges:
*Incompetent and inadequate customer service.
*Unfair and deceptive loan modification terms.
*Failure to respond to requests for assistance.
*Failure to offer timely or affordable loan mitigation options to borrowers.
“The acts of some mortgage servicers have gone beyond the point of being negligent,” Cordray said in a press release. “They have become predatory financial practices and in Ohio they won’t be tolerated.”
The lawsuit seeks a permanent injunction against continuation of unfair and deceptive loan modification practices, restitution, civil penalties and damages.
Jordan Dorchuck, the company’s executive vice president and chief legal officer, said in a press release that “we are convinced that these allegations are entirely without merit, and intend to defend ourselves vigorously against them.”
Dorchuck cited the “positive feedback we have received from many Ohio state and non-profit agencies regarding our homeownership preservation efforts.”
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