(COLUMBUS, Ohio) – Ohio Attorney General Mike DeWine and Ohio Department of Commerce Director David Goodman today announced an assurance of voluntary compliance (AVC) with Carrington Mortgage Services, LLC to resolve a 2009 lawsuit and to provide relief to Ohio homeowners facing foreclosure.
"This agreement will help Ohioans obtain affordable modifications to allow them to stay in their homes," Attorney General DeWine said. "We are pleased that Carrington Mortgage Services has worked with our Office and is committed to helping Ohio homeowners avoid foreclosure."
Ohio Department of Commerce Director Goodman recognized, "Ohio consumers benefit from mortgage servicers that work proactively to avoid foreclosures. This settlement will allow Ohio homeowners to benefit from higher standards of customer service and responsiveness. The benefits of this agreement multiply. Working with homeowners to modify loans instead of foreclosure is a value to the neighborhood and beyond. Empty, unattended homes are not good for a community."
The Attorney General, the Ohio Department of Commerce and Carrington Mortgage Services agreed to mortgage servicing standards that will apply to all Carrington Mortgage Services-serviced Ohio loans. The servicing standards include:
- Borrowers who complete a loan modification application will be assigned a single point of contact with Carrington Mortgage Services.
- Carrington Mortgage Services will implement a specific timeline for all loan modification requests.
- Carrington Mortgage Services will temporarily suspend foreclosures when a borrower completes a loan modification application and will implement an internal review process for denied loan modifications.
Carrington Mortgage Services also has agreed to provide loan modifications or other relief to 60 Ohio homeowners who had obtained their loans from a non-Carrington Mortgage Services lender, the servicing rights for which Carrington Mortgage Services acquired in 2007. Prior to the AVC, Carrington Mortgage Services had entered into modifications with 31 of those homeowners, and under the AVC, Carrington Mortgage Services has agreed to provide modifications or other relief to the other 29.
The AVC ends litigation that the Ohio Attorney General's Office and the Ohio Department of Commerce filed against Carrington Mortgage Services in Franklin County on July 31, 2009. Carrington Mortgage Services admits to no wrongdoing or liability as part of the AVC.
Ohioans facing foreclosure should contact Save the Dream Ohio at 1-888-404-4674 or www.SavetheDream.ohio.gov. Save the Dream Ohio is a state program that provides free housing counseling and direct referrals for free legal assistance to Ohio homeowners.
View signed agreement.
Lisa Hackley: 614-466-3840
Eve Mueller: 614-466-3840
Lyn Tolan, Ohio Department of Commerce, 614-644-7115