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Onity Group files suit seeking judicial clarification of NY mortgage servicing regulation
ONITOnity Group Inc.
Onity Group Inc. filed a declaratory judgment action in the U.S. District Court for the Northern District of New York to obtain clarity on how a New York mortgage servicing regulation applies to optional expedited payment fees. The company argues that the regulatory phrase 'reasonably related to the cost of rendering that service' lacks defined standards or published guidance, raising fair notice concerns under the U.S. Constitution. This legal action follows information requests from regulators regarding fee practices for borrowers using specific optional payment methods. Onity Group Inc. is a leading non-bank financial services company delivering mortgage servicing and originations solutions.