CHARLESTON – A couple is suing Amerihome Mortgage Company after they claim it has failed to comply with industry standards.
On Oct. 21, 2014, Amanda Hanson and Nicholas Hanson entered into a home mortgage loan of $194,200 with Victorian Finance to purchase a home in Fayetteville, according to a complaint filed June 5 in Fayette Circuit Court and removed to federal court on July 24.
The Hansons claim on Nov. 11, 2014, the servicing rights of the loan were transferred to Amerihome.
At some point on or around Oct. 14, 2016, the defendant began serving the loan directly, instead of through a sub-servicer, according to the suit.
The Hansons claim they experienced a decrease in household income in February 2016, when Nicholas Hanson was laid off from his job and they continued to make payments for several months until they could no longer afford to on their limited income.
In September 2016, the plaintiffs inquired about loss mitigation options and Amerihome informed the plaintiffs that they could apply for loss mitigation, according to the suit.
The Hansons claim in November 2016, Nicholas Hanson went back to work, although at a significantly decreased income, and they frequently contacted Amerihome to check on the status of the application for loss mitigation and were frequently informed that their loss mitigation packet was missing information and that the defendant had sent letters requesting information.
On Jan. 30, the plaintiffs received a letter stating that documentation was missing and that they were ineligible for the home affordable modification program, according to the suit.
The Hansons claim the refusal to reconsider a borrower for future loss mitigation based on incomplete packets is not in accordance with industry best practices and applicable regulations.
On Feb. 15, the Hansons were informed Amerihouse was discontinuing the loss mitigation process because the information had not been provided in a timely manner and the letter did not offer any opportunity to appeal the “discontinuation” of the loss mitigation process, according to the suit.
The Hansons claim Amerihome failed to comply with industry standards as well as applicable rules and regulations relating to loss mitigation activities on mortgage loans.
While the plaintiffs can now afford regular monthly payments, they cannot afford arrears that have accrued as the direct result of Amerihome’s failure to timely evaluate their applications for loss mitigation assistance, according to the suit.
The Hansons are seeking compensatory and punitive damages. They are being represented by Colten Fleu and Loree Stark of Mountain State Justice.
Amerihome is represented by J. Mark Adkins and Andrew C. Robey of Bowles Rice.
U.S. District Court for the Southern District of West Virginia case number: 2:17-cv-03691
