Ohio Attorney General Richard Cordray has filed a lawsuit against American Home Mortgage Servicing Inc. (AHMSI), a Texas-based company servicing more than 12,000 sub-prime and prime mortgage loans in Ohio. The lawsuit alleges numerous violations of the Ohio Consumer Sales Practices Act including but not limited to: Incompetent and inadequate customer service, failure to respond to requests for assistance, failure to offer timely or affordable loss mitigation options to borrowers and unfair and deceptive loan modification terms.Read more

The U.S. Department of Housing & Urban Development (HUD) has announced that its Mortgagee Review Board (MRB) is imposing civil monetary penalties totaling $27,000 on two FHA-approved lenders in Wisconsin and Connecticut for a variety of violations of FHA lending and marketing standards. In addition, the MRB reached tentative settlements with four other lenders and issued two Letters of Reprimand to lenders that HUD alleged violated FHA requirements. “There should be no doubt about the message we’re sending to our lenders,” said FHA Commissioner David Stevens.Read more