Home Loan Servicer Charged for Violating Laws

Allison Tussey —  September 2, 2010 — 4 Comments

American Home Mortgage Servicing Inc. (AHMS), Coppell, Texas, has been charged with using illegal debt collection tactics and improperly misleading struggling homeowners.

According to state investigators, the defendant claimed to have a “Home Retention Team” to assist distressed homeowners. Many customers found that AHMS could not qualify homeowners and that they were of no help to halt the foreclosure process. Some homeowners who actually obtained loan modifications found that their monthly payments increased rather than decreased, which worsened their problem with foreclosure.

Additionally, AHMS collections agents used aggressive and unlawful tactics to collect payments from Texas homeowners who had difficulty meeting their payment obligations. The defendant also failed to credit homeowners who properly submitted their payments on time. In other cases, AHMS agents falsely claimed that homeowners did not make payments so the agents could justify profitable late fees or escrow accounts. The defendant also failed to properly credit homeowners after AHMS agents withdrew funds from the homeowners’ checking accounts. Because of the defendant’s unlawful conduct, homeowners defaulted on their loans, leading to foreclosure proceedings.

The enforcement action charges AHMS with multiple violations of the Texas Debt Collection Act and the Texas Deceptive Trade Practices Act (DTPA). The State is also seeking civil penalties of up to $20,000 per violation of the DTPA.

Texas Attorney General Greg Abbott announced the charges.

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Allison Tussey

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4 responses to Home Loan Servicer Charged for Violating Laws

  1. We had to short sale our home in 2008 because AHMS and their entities would not and could not help…homeowners that were lawfully paying bills. After having the house on the selling market for a while and also trying to rent it, but no go that route. I called the “HOPE” program but because our LTV was higher then value of home we were not able to be involved with the HOPE program or couldn’t modify and needed to cvome up with a LOAD of money in order to refinance and even then ther was no guarntee. The title company, appraisal company and broker/ lender ALL went under. I called NY to get info on the license issues etc and no has ever called back. We threw our arms up in the air and did the short sale. We have all of our paperwork from all of this and would l;ove to join a class action lawsuit.

  2. Bravo, Texas! I, too have been victimized by American Home Mortgage’s fraudulent schemes and collecting as many names as I can of Maryland borrowers to present to the Attorney General of Maryland. If any of you are out there, please email me at rrupli@msn.com.

  3. Collections companies have gone rabid. Perhaps if the employees of this company lose thier jobs, they might get a taste of what they dished out to others. Keep up the good work OAG! These guys need to be made an example.

  4. Good for Texas! Don’t Mess With Texas!!

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