Wilbur Ross' American Home Mortgage Servicing Inc., facing lawsuits by attorneys general in two states, has been sued by a homeowner who accused the firm of using tactics that lead to improper foreclosures.
The lawsuit, filed Oct. 25 in federal court in Dallas, seeks class-action status on behalf of homeowners with mortgages serviced by American Home going back to 2006. American Home's "illegal, unfair and deceptive business practices victimize borrowers" across the U.S., according to the complaint.
American Home "routinely and systematically assesses unwarranted fees against consumers, resulting in premature default that often gives rise to unfair and improper foreclosure proceedings," the lawsuit said. The complaint in Dallas, filed by Kay VanHauen of Sanger, Texas, follows lawsuits by Greg Abbott, the state's attorney general, and Ohio Attorney General Richard Cordray. They separately sued American Home, which is based in Coppell, Texas, for alleged violations of consumer protection laws.
