Friday, July 31, 2009 at 3:18 PM
Ohio's attorney general has filed the first lawsuit of its kind against a mortgage servicer - one of those companies hired by lenders to take in mortgage payments.
AG Richard Cordray says California-based Carrington Mortgage Services has not met its legal obligations to work with their customers to get reasonable loans worked out on reasonable terms.
"This is the institution that's in charge of working with you to see if your terms can be modified whether there's a way to keep you in your home," Cordray said. "They have promised to do that, and yet we find that they don't answer call, they don't process paperwork, they lose your paperwork."
Cordray and the Ohio Department of Commerce jointly filed the suit, and the AG says this should serve as a warning to other mortgage servicers that he has -- quote -- "zero tolerance for this kind of behavior."
Carrington officials said in a statement that the lawsuit is "meritless" and that the company has modified loans for around half of its customers.