The Ohio Attorney General and Carrington Mortgage Services settled a lawsuit last week, establishing new servicing standards in the state and providing mortgage relief to homeowners.
In 2008, Carrington committed to make good faith efforts to provide more workouts after its servicing practices were called into question by the Ohio AG. In 2009, then Ohio AG Richard Cordray and the Ohio Department of Commerce filed a joint complaint against Carrington, alleging it did not provide modifications in the state as required under that 2008 agreement.
According to last week's settlement, Carrington will assign a single point of contact at the firm to work with borrowers who apply for a modification. The servicer will also implement a specific timeline for all requests, and it will suspend the foreclosure process while a loan is being evaluated for a workout. Internal reviews will also be set up for denied modifications.
Carrington also agreed to provide relief to 60 Ohio homeowners that involve loans to which Carrington acquired the servicing rights to in 2007.
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