twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


American Home Settles With Mass.

Suitability of Option One loans at issue

Nov. 13, 2009

By MortgageDaily.com staff


American Home Mortgage Servicing Inc. has reached a settlement with the Commonwealth of Massachusetts.

The Coppell, Texas-based servicer has agreed to significantly modify 8,200 Massachusetts mortgages, the state's attorney general's office announced Wednesday. Borrowers who are more than 45 days past due and unable to make their scheduled payments are eligible for modifications.

Modifications will involve interest-rate reductions, extending amortizations and -- if necessary -- principal forbearance.

The state will have the opportunity to object to foreclosures or modification denials. When the state and American Home are unable to resolve their differences, American Home will be required to obtain court approval to foreclose.

Delinquent borrowers who do not qualify for modifications or other workout options will be eligible for relocation payments of between $3,000 and $7,500

The loans were originated by Option One Mortgage Corp., which was shut down by parent H&R Block Inc. in December 2007.

American Home acquired Option One's servicing business in the Spring of last year.

Massachusetts filed a lawsuit in Suffolk Superior Court in June 2008 against Option One and H&R Block alleging that the former subprime lender put borrowers in risky loans it should have known would wind up in foreclosure. In addition, the company allegedly charged several hundred dollars more in fees and points to black and Latino borrowers than similarly situated white borrowers.

The lawsuit led to a November 2008 injunction by a superior court that was upheld by the Massachusetts Appeals Court on Oct. 28.

"As a result, American Home Mortgage Servicing Inc.
was named as a defendant in the office's ongoing enforcement action, and became subject to certain obligations under a preliminary injunction issued by the Suffolk Superior Court in November 2008, which limited the defendant's ability to foreclose on the loans originated by Option One and H&R Block Mortgage," today's announcement stated.

No misconduct is alleged against American Home.

But litigation against Option One and H&R Block Mortgage is expected to go to trial next year.

"The lawsuit is seeking redress for the damage incurred by homeowners and Massachusetts communities as a result of the unfair and deceptive lending practices of the defendants," the statement said. "The lawsuit also alleges civil rights violations because the defendants' policies and practices resulted in discriminatory pricing to the detriment of black and Hispanic borrowers; disparate pricing violates antidiscrimination laws."

Last week, American Home filed a lawsuit in a Franklin County, Ohio, court against Ohio's attorney general in anticipation of a lawsuit filed that same day by the state in Cuyahoga County Common Pleas Court against American Home. Ohio claims American Home forced borrowers to pay excessive fees, waive their rights and agree to modification terms that were "unconscionably one-sided."

American Home profile

next story

back to current headlines

Loan Modification News
Loan modification activity, reports and legislation.




SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders