Ohio attorney general to file suit against a national mortgage company, alleging fraud

Ohio AG to file suit against major loan servicer

COLUMBUS, Ohio — Ohio Attorney General Richard Cordray plans to announce a lawsuit against a national mortgage company, alleging fraud that could involve hundreds of foreclosures in the state.

His office declined to name the servicer ahead of Wednesday’s announcement. Last week, he asked Ohio judges to review GMAC Mortgage foreclosure cases.

Ally Financial Inc.’s GMAC Mortgage division and two other companies have halted foreclosures in 23 states — including Ohio — after evidence surfaced that employees or outside lawyers signed documents without reading them or filed inaccurate paperwork.

Cordray has previously filed three lawsuits against loan servicers accusing them of violating the state’s consumer laws. Those servicers are Carrington Mortgage Services, American Home Mortgage Servicing and Barclays Capital Real Estate.