Onity Group Seeks Judicial Clarification of New York Mortgage Servicing Regulation, Issues Statement

Onity Group, Company statement

“Today, we filed a declaratory judgment action in the U.S. District Court for the Northern District of New York seeking clarity on how a New York mortgage servicing regulation applies to optional expedited payment fees. The regulation permits fees if they are "reasonably related to the cost of rendering that service," but in the nearly seven years since it was adopted, that phrase has not been defined in the rulemaking record, published guidance, or in response to our questions. These fees are entirely optional—no customer is ever required to pay them. Customers can pay in several ways at no cost, while those choosing a faster option receive advance disclosure of the fee, notice of free alternatives, and are asked to consent before being charged. We have voluntarily reduced these fees and eliminated them for online and automated phone payments. Throughout this process we have cooperated fully with the State and remain prepared to meet any clearly defined standard. Because that standard remains undefined, we believe a court is the appropriate place to resolve the issue. We remain committed to complying with the law, engaging constructively with our regulators, and treating our customers fairly.”