Mortgage holder sued for couples’ low credit score

GRETNA – A couple is suing their home mortgage holder for allegedly not providing their credit history to all credit agencies, resulting in an artificially low score.

David H. Scheuerman Jr. and Martina T. Scheuerman filed suit against Ocwen Loan Servicing LLC in the 24th Judicial District Court on Jan. 7.

The Scheuermans claim they own property located at 1 Monte Carlo in Kenner that was first purchased by David’s parents through the First Federal Savings Bank of New Orleans on March 5, 1986. The plaintiffs allege that they signed an act of sale and a promissory note assuming all debts on the home and began making payments on the home’s mortgage to First Federal Savings Bank of New Orleans. The Scheuermans assert that a title insurance policy was issued at the time of the home’s first sale.

The plaintiffs claim the mortgage on the property was sold by First Federal Savings Bank of New Orleans to Litton Services and then Ocwen Loan Servicing LLC for collection and servicing. The Scheuermans allege they have continued to pay the mortgage on the home, but Ocwen has failed to submit information concerning their payments to the three main credit rating agencies. The plaintiffs assert that they attempted to have their credit reports with all three agencies to be updated while only one agency was receiving updates at the time, but that in April 2012 Ocwen failed to update their credit even with one credit agency.

The defendant is accused of actions that have resulted in the plaintiffs’ credit rating being 100 points under what it should be and they have been subject to higher interest rates.

An unspecified amount in damages is sought to ensure the defendant properly furnish their credit reports to all credit agencies and an amount equal to increased amounts and sums the plaintiffs have paid as a result.

The Scheuermans are represented by attorney Michael A. Brit of Kenner.

The case has been assigned to Division B Judge Cornelius E. Regan.

Case no. 734-374.