COPPELL, Texas–(Business Wire)– American Home Mortgage Servicing, Inc. (AHMSI) filed suit today in Franklin County, Ohio, against the Ohio Attorney General to dispute unsupported allegations made in a pre-suit letter from the Ohio Attorney General`s office regarding the company’s mortgage loan servicing practices, including its customer service, loss mitigation, and loan modification activities, under the Ohio Consumer Sales Practices Act.
“Given our strong commitment to keeping borrowers in their homes and the
specific, positive feedback we have received from many Ohio state and non-profit agencies regarding our homeownership preservation efforts, AHMSI`s management was dismayed when it received a letter last week from the Ohio Attorney General`s office threatening to sue AHMSI for unfair servicing practices,” said Executive Vice President and Chief Legal Officer Jordan Dorchuck.
“We offered to meet with representatives of the Attorney General in an attempt to resolve any issues they may have regarding our servicing practices. The Attorney General’s office refused to discuss its allegations prior to instituting a lawsuit against AHMSI and indicated that it intended to file suit today.
Rather than wait to be named as a defendant in a suit that AHMSI considers to be rash and without merit, we elected to petition an Ohio state court for a declaration that AHMSI`s servicing practices are fully compliant with Ohio law.
AHMSI is proud of its many successful efforts to assist distressed homeowners and looks forward to judicial resolution of any questions that any party might have about our performance.” Dorchuck further stated: “Although we respect the Attorney General`s commitment to serve the people of Ohio, we are convinced that these allegations are entirely without merit, and intend to defend ourselves vigorously against them.”
Founded in April 2008 in the midst of the mortgage crisis, AHMSI specializes in servicing distressed residential mortgage loan portfolios. It did not originate any of the more than 500,000 loans it services, including approximately 17,000 loans in Ohio. In the year and a half since it commenced operations, AHMSI has grown from 300 employees to more than 3,000. Many of these new associates were hired to support the company`s industry-leading foreclosure prevention efforts.
With a large staff in place, the company maintains high customer service
standards and has established processes for working closely with borrowers to resolve any questions, concerns and complaints.
AHMSI has worked actively with borrowers in Ohio who have encountered difficulty meeting their loan obligations. Among other things:
* AHMSI has participated since late July 2009 in the federal Home Affordable Modification Program (HAMP). Every AHMSI Ohio customer who is potentially HAMP eligible, including borrowers whose loans were in foreclosure, has received a HAMP solicitation letter.
* Prior to its participation in HAMP, AHMSI had developed a vigorous and
creative loan modification program to help distressed borrowers.
* AHMSI is a member of the HOPE NOW Alliance and its senior executives play a leadership role in the organization.
* AHMSI has a dedicated Homeownership Preservation Office and has participated in many Ohio homeownership preservation outreach events in the past year, bringing its specialists onsite for face-to-face meetings to address borrowers` loan modification needs.
* Since October 2008, over 2,200 AHMSI customers in Ohio have entered into non-HAMP loan modifications, and an additional 173 customers are currently proceeding under HAMP trial modifications.
* In the year ending September 2009, AHMSI also worked with 141 Ohio borrowers to sell their homes with a short payoff, rather than proceeding to foreclosure.
Nationwide, during the twelve months ended September 30, 2009, AHMSI completed more than 67,000 non-HAMP modifications, which represents more than 15 percent of its entire servicing portfolio, and initiated more than 6,800 HAMP modifications. In 79 percent of its non-HAMP modifications, borrowers experience a reduction in principal and interest payment, with the average reduction being 30.5 percent. AHMSI`s non-HAMP modifications for the year ended September 30, 2009, show that 74.8% of AHMSI borrowers with modified loans are performing
after six months, compared with an industry average of 60%.
About AHMSI
Established in April 2008, AHMSI is one of the country`s largest residential
mortgage loan servicers of Alt-A and non-prime loans. The company is
headquartered in Coppell, Texas, and operates as well through locations in
Irvine, California; Jacksonville, Florida; and Pune, India.
American Home Mortgage Servicing, Inc.
Christine Sullivan
(949) 790-3600, ext. 35204
I commend AHMSI for the good work in helping so many of its clients, but they are the exception rather than the rule. Most servicers are not as willing to do loan modifications and to really help the consumer. Some have been waiting for 1-2 years for the modification and then they go through forclosure anyway, while waiting for the loan modification that never came through. They get the run around and by the time they know it, it is too late to consider other venues, like a forensic audit to see if there are any predatory lending issues with their loan, then they would have a case to sue the bank. Right now predatory lending is much in the news because that is the reason why this country is where it is and we are having such issues with our economy.
Minda Perez
US Loan Auditors
http://www.LoanAuditors.org
I’m sick to hear that the Ohio Attorney General is going after AHMSI. They are one of the ones that truly give decent modifications and other mitigation workouts.
The OAG must enjoy tossing taxpayers money away because they sue first then investigate late. What a sucky operation this is. I hope AHMSI runs them in the ground with TONS of paperwork. It is sad that the State of Ohio can’t locate real crime to chase down.
For The Record
I can understand Ohio’s position. AHMSI placed an escrow account on our loan due to a supposed lapse in coverage of the insurance we maintain on our property. My insurance agent and I have called 6 times, faxed the same documents 5 times (one of which was a one-stop fax directly to one individual with whom we were on the phone), and emailed 5 times. This started in October. We are still getting collection calls daily because AHMSI says my payment is past due. In fact, all payments have been made every month exactly on time as always. They are putting the money first in the bogus escrow account instead of putting it toward my loan. They have had proof of coverage (with no lapse) for months now, and we cannot get them to fix this mess. If it isn’t resolved soon, the state of Kansas may be the next in line to sue. Can states generate a class action suit?
AHMSI are nothing but a bunch of crooks, and their response in this article is nothing more than smoke in mirrors. Our trouble started with them in July 2009 when they paid our property taxes AFTER we had already paid them (we were not escrowed). Then they said that WE had to pay them back that they would not wait for their refund from the county tax office. The next fiasco with them is that we have been attempting to do a loan modification, in which they never return our phone calls (we’ve left as many as 20 messages in a week’s time with no response) or if they do decide to call us it is to ask for more and more documentation, which I send it to them the very same day of their request. This has been going on since October 2009 and still no word if they are going to do a mod or not. Third problem with them was with the homeowners insurance, which nothing had changed, same policy etc, but they claimed we didnt have insurance (this was December 2009), when we do. We had to send documentation of coverage numerous times. If you look at the report on at the U.S. Treasury website you will see that through the end of December 2009 they have only completed 232 permanent modifications, so I don’t see how the other poster can say that AHMSI “are one of the ones that truly give decent modifications and other mitigation workouts”…..Wouldn’t surprise me if that person works for them and is just blowing more smoke in mirrors.
No sir, not blowing smoke in mirrors. Just a hard FACT after working with many different ones over the past several years. Yes, it is true they are not the best when it comes to timelines. But once you reach the negotiator or the relations manager who has the authority to make a decision your case will usually get resolved.
Also, when I talked about decent modifications, I wasn’t speaking of the HAMP program that seems to be one of the tickets out. I was more less speaking of the reasonable down payments to cover legal costs and misc fees. Most of the others charge fees connected with in (traditional or in house modifications) and will out right refuse to explain what these fees are. Sorry you had such a hard time in dealing with them.
I am having a hard time with AHSM. They say they my home is going into foreclosure. I am only four payments behind. My husband left when I was two payments behind. They wouldn’t let me take my leftover escrow money to catch up right then. Then, my car broke down and I couldn’t do the modification payment and now they are trying to take it from me, not letting me make a payment, negotiator won’t talk to me and they are racking up the charges… One person says the repayment amount is 10,000. Another says 9,000. Another says 8,000. This is ridiculous! I can make a payment, have two minor children and am a single mom going through a divorce!!! Shame on them for what they are doing to me and I am going to fight it tooth and nail!!!
This is the worst the company I have ever dealt with. Check out their rating and comments on the Better Business Bureau website or just google their name. They are known for being crooks. It is more than them being slow. Their call center is based out of India, no one gives you the same information. I have even been hung up several times while on hold. We paid our payments on time every month just to have them add bogus fees and break federal law with their overcharging of escrow “cushions”. I finally got a lawyer and filed suit today. the day my mortgage was sold to this company was the worst day of my homeowning life!!!
I wish to God the Attorney General in the state of Florida would get off their duffs and go after this bunch of lying souless low lifes that never pick up a phone, return a call, answer an email inquiry, respond to a postal letter, and outsource most work to India where all they know how to say is, “….and when will you be making a payment?” They are a collection agency that bought mortgages to collect on. Florida needs to get on the stick like Ohio and Texas because real victims are losing their homes due this the games AHMSI executes.
I am in Florida and I am meeting with a lawyer next week regarding this company. They have charged us unauthorized amounts, not applied our payments towards our account, and reported to our credit that we were two months late (when we were not). Then, they refuse to take it off and say we can only fax the legal department and wait for their reponse. Plus, we applied for a remodification and they held our payment in another account for 8 months (while they earned interest on it). They made us jump though hoops, told us we were approved, and then closed our remodification with no explanation. They will not tell us why and said we can never reapply. I would love to get a class action suit together and put this company out of business. They are just corrupt!!
I need help!!!!!!!!!!!! Im trying to help out a friend with this loan mod and have sent AHMS the requested apps and documents 4 times and they keep calling and sending letters stating that the package wasnt sent! anyone have a good fax number that i can use and maybe a number of someone i can talk to so that know what they are speaking about!!!!
I have been attempting to gain modification through AHMSI since April of 2010. They sent me and (according to the rep I spoke with) thousands of other people the wrong forms to fill out in the packet. After receiving the correct forms in May, I filled them out and received a letter that the forms were received and were being reviewed for modification. Two weeks later, I received a letter stating that my forms were incomplete. I called and received instruction on what they wanted me to change on these forms. I corrected them to their specifications and re submitted. It is now January 7, 2011. I have been submitting and resubmitting the same forms to this company for eight months. After I change the date on my e file tax returns, they want new bank statements. Then they want me to fill out a new version of the 4506 T form. Next I have to send pay stubs. This is a nightmare! I am getting the run around and have turned into the person who I hate (you know, the one who calls every other day to scream). My calm, rational thinking didn’t help, screaming doesn’t seem to help, I even cried a couple of times and that doesn’t help. I am now complaining to every consumer group, my Attorney General, and state rep who will listen. To the gentleman above, you can try to call the 1-877-304-3100 number and the fax that Ive been sending documents to is 1-866-452-1837.
Beware of this Company AHMSI!! The wonderful Relief Program…they send me my modification 4 months later (2009) They took my fixed rate away! which promised they wouldnt’! They charged me over $34,000 for fines, and services, they slapped a $500,000 ballon note!!! I was only 30 days behind, I was proactive, they ENCOURAGED me to take this wonderful Relief Prgram, RELIEF!!! I told them I dont want to loose my 5%fixed, we can do better they said!! I asked about the 4 mortgage payments, we will put them at the end not an Issue!! Sounds Good Doesnt IT! When I got my new modification, I saw the charges, the lose of my fixed rate and the ballon note, they said SIGN or we foreclose! I can apply next year..hear I am again, bounced around like a ball! India, Mexico!!! The paper work, they send me a letter saying I have all paper completed, I call they say you didnt the sign the date correctly! I put the date 11/28/10 they couldnt except, they wanted it 11/28/2010 Imagine that!!!! Delay Delay, excuses, excuses, Promises, Promises, lies, lies…my negotiator has a new name everytime I call! All’s they say is when are you sending a payment!! We all need to come together..I have contacted an amazing Attorney..fight them!! Write to your Attorney Generals Office. Oh I will pay my Mortgage at 30 days behind..so they cant foreclose!! I will show the world how they offered me this amazing Relief Program!! Good Luck All
As with others, AHMSI has IGNORED signed contracts with the original lender and made demands in direct contradiction to the original papers. In addition, they are requiring exorbitant impounds which were incorrectly calculated, raising the illegally set impounds monthly payment from $150 to $900. I sent them documentation – which they replied (after 2 months) telling me to make the payments and they ‘would look into it in 3 months’. Meanwhile, I can’t afford an extra $1,000/month to pay their mistake so I am now ‘late’ because they are putting my payments in a suspense account. They are getting away with stealing. If I did what they are doing I would go to jail.
I am in Colorado and hope the attorney general sues the life out of them. I will write them also.
Ran into alot of the same problems when delaing with this company….Have hired lawyer to negotiate with them….not a consumer friendly company