COLUMBUS, Ohio (Legal Newsline) - Ohio Attorney General Mike DeWine announced an agreement on Monday with American Home Mortgage Servicing Inc., settling a 2009 lawsuit alleging the company had violated Ohio consumer law.
The lawsuit, filed in Franklin County Common Pleas Court, alleged that AHMSI violated state law by providing inadequate services to consumers seeking loan modifications.
"This agreement will help Ohio homeowners receive fair, improved and faster treatment when negotiating a loan modification or trying to avoid foreclosure," DeWine said. "We are pleased that American Home Mortgage Servicing has worked with our office to reach this settlement and to help Ohioans."
Under terms of the settlement, AHMSI agreed to mortgage servicing standards that will apply to all Ohio loans serviced by AHMSI. AHMSI will no longer assert in loss mitigation agreements that consumers have no right to claims against holders of notes or lenders. In addition, AHMSI will temporarily suspend foreclosures when a borrower completes a loan modification application and will implement an internal review process for loan modifications that have been denied. AHMSI will also execute a specific timeline for all loan modification requests and will ensure that borrowers who complete a loan modification application will be assigned a single point of contact with the company.
AHMSI also agreed to work with various federal and Ohio programs meant to assist homeowners in distress. Such programs include Empowering and Strengthening Ohio's People, the Neighborhood Assistance Corporation of America, the Ohio Governor's Office, Ohio's Restoring Stability Program and programs sponsored by HOPE NOW.
AHMSI also agreed to respond to DeWine in writing no later than 30 business days after receiving a complaint forwarded by DeWine's office.