Ohio Attorney General Sues Barclays' HomeEq Unit Alleging Unfair Mods

Ohio attorney general Richard Cordray has filed yet another lawsuit that alleges unfair loan modification agreements and faulty customer service, this time against Barclays Capital Real Estate dba HomEq Servicing. Filed in Montgomery County Common Pleas Court, the lawsuit alleges that at-risk homeowners "were forced to enter into one-sided agreements," that released HomEq of all liabilities requiring borrowers to waive their defense rights and pay additional fees. "In Ohio we have zero tolerance for any more excuses," Mr. Cordray said, while stating that "many servicers" are aggravating the crisis through noncompliance and excuses. The attorney general has so far filed at least two similar lawsuits against other companies. A HomEq spokesperson told National Mortgage News the lawsuit is "a meritless complaint" and that HomEq will vigorously defend itself against it. "HomEq is committed to quality customer service and to working with financially distressed borrowers to help them remain in their homes," he said.