American Home Mortgage Servicing vs Carrington Capital
If you want to read an interesting article about lawsuits and knock-down dragged out fight between mortgage corporations, here is where to go: http://www.housingwire.com/2009/03/19/american-home-fires-back-sues-carrington-for-racketeering/.
American Home Mortgage Servicing, Inc. was sued by Carrington, and then counter-sued—accusing Carrington of racketeering and making illegal and misrepresented profits for itself.
Here is an excerpt from the article: “American Home was first sued by Carrington Capital on Feb. 9 for breach of contract and fiduciary duty, with the investor alleging the REO sales hoisted $100 million in losses on the hedge fund. Sources familiar with the case at American Home say that the servicer will shortly file a notice to dismiss the original suit, citing a clause in the original pooling & servicing agreements that stipulates at least 25 percent of the mortgage certificate holders must agree to sue a servicer before any such suit can be effected. Carrington doesn’t own 25 percent of the interest in the mortgage investments they are suing over, the sources said.”
The implications of these suits and allegations are deep-rooted and undoubtedly will affect mortgaging firms nation-wide.
Comments
Leave a Reply
You must be logged in to post a comment.