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
{ 4 comments… read them below or add one }
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.