Foreclosing Lenders To Face Lawsuits For Failing To Deliver On Promises Of Loan Modification Help, Says Ohio AG
In Columbus, Ohio, The Columbus Dispatch reports:
- Mortgage lenders who promise to work with clients facing foreclosure and fail to follow up could find themselves in court. Ohio Attorney General Richard Cordray said [Friday] that he will soon sue mortgage lenders who violate consumer-protection laws. "Many lenders are pledging to work with customers and failing to do so," Cordray said. "They're not returning calls, paperwork gets lost, payments misappropriated." He would not identify targets but said his office is looking at the 10 or 12 largest Ohio lenders.
- "The goal of the lawsuits is compliance with their promises," Cordray said. "We want there to be accessible personnel, a reasonable process, clear steps. What we want is a change in behavior." The news came as he and other state officials, judges and representatives of nonprofit groups met in Columbus as part of a Save Our Homes Summit designed to focus on addressing the foreclosure crisis in the state.
For more, see Cordray warns mortgage lenders (Many customers not getting aid as promised, AG says).