Carrington Mortgage Services and the Attorney General of Ohio have reached an agreement to work collaboratively in order to help struggling homeowners who are facing foreclosure.
The two sides have been involved in litigation since 2009, when former AG Richard Cordray claimed the servicer was using unfair and deceptive loan modifications against eligible borrowers.
As part of the agreement, the servicer will provide a single point of contact for borrowers completing and submitting a loan modification package. The new program will also temporarily suspend any foreclosure activities that may be underway once a borrower completes a modification application while the loan is being evaluated.
The Santa-Ana, Calif.-based company also will implement a specific timeline for all loan modification requests and start an internal review process for any denied loan modifications.
“Combining the effort and resources of CMS and the state of Ohio to further the goal of assisting Ohio homeowners makes great sense,” said David Gordon, COO of Carrington Holding Co. “Instead of focusing our energies on litigation, we will be working together to continue what we have been accomplishing for our consumers all across the country: offering best-in-class servicing and providing a loan modification and loss mitigation process that is as simple and seamless as possible.”
The loan servicer has agreed to provide modification relief to 60 state homeowners that obtained loans from a lender that Carrington acquired in 2007. Before the compliance agreement occurred, the servicer initially entered into modifications with 31 of those homeowners. The rest of the homeowners will also now get their proper loan modification.
