Ohio lawsuit resolved

Bryan Cohen May 20, 2011, 2:57pm


COLUMBUS, Ohio (Legal Newsline) - Ohio Attorney General Mike DeWine and Ohio Department of Commerce Director David Goodman announced an assurance of voluntary compliance on Friday with an Ohio mortgage services company.

The assurance with Carrington Mortgage Services resolves a 2009 lawsuit provides relief to homeowners in Ohio who are facing foreclosure.

As part of the AVC, Carrington agreed to mortgage servicing standards, including assigning borrowers who complete a loan modification application a single point of contact with Carrington Mortgage Services, temporarily suspending foreclosures when a borrower completes a loan modification application, and implementing an internal review process for denied loan modifications and a specific timeline for all loan modification requests

"This agreement will help Ohioans obtain affordable modifications to allow them to stay in their homes," DeWine said. "We are pleased that Carrington Mortgage Services has worked with our office and is committed to helping Ohio homeowners avoid foreclosure."

Carrington Mortgage Services has also agreed to provide loan modification or other relief to 60 Ohio homeowners who had obtained loans from a non-Carrington Mortgage Services lender. Carrington acquired the servicing rights for those loans in 2007 and entered into modifications with 31 of those homeowners prior to the AVC. Under the AVC, the company has agreed to provide modifications or other relief to the other 29.

Carrington Mortgage Services admitted to no wrongdoing or liability.

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