From www.bloomberg.net – December 16, 2009
Ohio Attorney General Richard Cordray filed suit against major international mortgage lender “Barclays Capital Real Estate Inc.” for issuing what he called unfair loan modification agreements and for providing “inadequate, incompetent customer service” to people at risk of losing their homes to foreclosure.
Cordray’s complaint against the Barclays’ subsidiary known as “HomEq Servicing”, was filed today (12/16/09) in state court in Dayton, Ohio. The attorney general asked for a court order barring the loan-servicing firm from violating state consumer protection laws, and has demanded fines of $25,000 for each violation.
HomEq services more than 10,000 subprime loans in Ohio (and many thousands more nationwide), Cordray said in a statement. Borrowers were forced to enter into one-sided agreements releasing the company from liability in exchange for the opportunity to keep their homes, and this particular lender’s actions (as well as those of other servicing agencies) have aggravated the foreclosure crisis, Cordray stated.
“In Ohio, we have zero tolerance for any more excuses,” Cordray said. The actual name of the case is State of Ohio v. Barclays Capital Real Estate Inc., 09-10136, Montgomery County, Ohio, Court of Common Pleas (Dayton).
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