Wilbur Ross
American Home Mortgage Servicing, the subprime mortgage company owned by New York billionaire Wilbur Ross, has been hit with a lawsuit from a homeowner who says the firm’s business practices have led to widespread “unfair and improper foreclosure proceedings.” According to the Oct. 25 lawsuit, which is seeking class-action status, the company “routinely and systematically assesses unwarranted fees against consumers, resulting in premature default.” It follows lawsuits filed by attorneys general Texas and Ohio against American Home for allegedly violating consumer protection laws, in addition to the ongoing nationwide probe into foreclosure documentation by banks and loan servicers. Ross, who is the CEO of distressed workout company WL Ross & Co., bought American Home in 2008 and expanded its operations. A spokesperson for the company said that “while a lawsuit on occasion may identify a legitimate servicing error, most of which are isolated and none of which to our knowledge indicate any systematic process flaws or patterns or unlawful behavior, we believe the majority of them are without merit.” [Bloomberg]
