Is Mortgage Servicing Company Subject to Sanctions Under Ohio Consumer Sales Practices Act?

Suit Seeks Damages for Filing of False Affidavits in Mortgage Foreclosure Cases

State of Ohio ex rel. Michael DeWine, Attorney General of Ohio, et al. v. GMAC Mortgage, LLC, et al., Case no. 2011-0890

U.S. District Court for the Northern District of Ohio

ISSUE: Can a mortgage servicing company that collects monthly mortgage payments, negotiates late fees and loan adjustments and pursues foreclosure actions against homeowners on behalf of residential mortgage lenders be held liable for civil penalties under the Ohio Consumer Sales Practices Act (CSPA) for engaging in unfair or deceptive practices in the litigation of a foreclosure action?