The Law Office of J. Arthur Roberts successfully sued American Home Mortgage Servicing Inc [AHMSI] in federal bankruptcy court and won a settlement for a client who contacted the firm 48 hours before the scheduled sale date.  The lawsuit was based on Truth in Lending violations.  The clients received a pre-HAMP loan modification that substantially reduced the monthly obligation, recapitalized arrears and deffered $100,000.00 of the principal balance. The firm also gives thanks to AHMSI for paying approximately $20k in attorney fees.  For more indication of the pattern and practices of AHMSI, currently under criminal investigation, read on: 

Texas AG Charges Home Loan Servicer With Violating Debt Collection Laws

Texas attorney general Greg Abbott has charged Coppell-based American Home Mortgage Servicing Inc., the nation's largest independent subprime servicer, with allegedly using illegal debt collection tactics and improperly misleading struggling homeowners.

According to a statement released by his office, AHMS collections agents used "aggressive and unlawful tactics to collect payments from Texas homeowners who had difficulty meeting their payment obligations." State investigators claim the defendant also failed to credit homeowners who properly submitted their payments on time.

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

Investigators allege that 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 AG's office said in a press release.

The AG's office said the defendant claimed to have a "Home Retention Team," which is currently listed on the company's website with a telephone number 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," the office wrote in the release.

Philippa Brown, a spokesperson for American Home Mortgage, told FPR the company does not comment on pending litigation.

AHMS is owned by New York-based private equity firm WL Ross & Co., which did not return a phone call for comment by press time.  By Jennifer Harmon