Ohio AG Tags Loan Servicer With Suit For Failure To Work Out Delinquent Mortgages; Follows Thru On Promise To Sue Foot-Dragging Lenders On Loan Mods

From the Office of the Ohio Attorney General:

• Ohio Attorney General Richard Cordray [Friday] filed a joint lawsuit with the Ohio Department of Commerce against Carrington Mortgage Services, LLC. The lawsuit alleges that Carrington breached its agreement with the state to offer reasonable loan modifications to eligible borrowers. The lawsuit also alleges that Carrington violated Ohio's Consumer Sales Practices Act by providing incompetent, inadequate and inefficient customer service in connection with its servicing of Ohio mortgage loans.

• Cordray is the first Attorney General in the nation to file suit against a mortgage servicer in the wake of the foreclosure crisis. "This lawsuit makes it clear that we have reached zero tolerance for this kind of behavior from loan servicers," said Cordray. "We've tried to work with them, but now we must take action. I am determined to see that mortgage servicers step up, take responsibility and start making it right with Ohioans. No more excuses."

For the entire Ohio AG press release, see Cordray & Ohio Department of Commerce First in Nation to Sue Mortgage Servicer for Unfair Practices.

For the Ohio AG lawsuit, see State of Ohio v. Carrington Mortgage Services LLC.

For a related post, see Foreclosing Lenders To Face Lawsuits For Failing To Deliver On Promises Of Loan Modification Help, Says Ohio AG.