Lawmakers in Austin got an earful from angry homeowners caught up in a mortgage mess with servicing companies. The Senate Committee on Business and Commerce heard testimony on the issue and will decide if this unregulated industry needs more state oversight.

“We can’t believe this is happening in America. You hear it in other countries, but not America,” Marta Guzman told committee members.

Guzman says she lost her home to foreclosure but not without a fight with Ocwen Financial Corporation.

“We were calling them daily, sometimes 3 times a day, “Guzman explained. “The lady from Ocwen answered and she told my husband ‘I can’t believe you are calling the day before your home is being foreclosed on. This is the first attempt you’ve made to call us,” Guzman continued.

Tim Bothe, who was recently featured in a FOX 4 report , testified about his troubles with American Home Mortgage Servicing, Inc (AHMSI).

“They make up the rules daily,” Bothe said to the committee. “There is no compliance, no regulation, and things change daily. And this is why people are in the mess they are.”

Kevin Christopher told the lawmakers AHMSI force-placed an insurance policy on his mortgage when he already had coverage.

“We contacted our insurance agent and she contacted American Home Mortgage, Inc, and began faxing information,” Christopher explained to the committee. “She faxed it no less than four times, trying to provide proof that we had insurance and they still refused to remove it.”

Kevin and Connie Christopher say their matter wasn’t cleared up until after the Texas Attorney General sued AHMSI for illegal debt collection tactics in August.

Mortgage servicing companies like AHMSI and Ocwen are not regulated in Texas. Lawmakers will determine if the rules need to change.

Legal Aid attorney, Robert Doggett told the committee members the problem is simple: the federal government’s loan modification program isn’t working.

“There is often a lot more incentive, frankly, to foreclose than there is to modify a loan for a servicer,” Doggett said.

But representatives from JP Morgan Chase, Wells Fargo, and Colonial Savings disagreed.

“We believe no one wins in the foreclosure,” Wells Fargo Vice President, Janice Huey said to the committee. “It is not our goal to foreclose on anyone.”

“Taking care of our customers is Chase’s number one business priority,” said Larry Hartman, Vice President of JP Morgan Chase.

And Colonial Savings’ VP argued there is already enough federal regulation.

But committee chair Sen. John Carona, R-Dallas, says he is hearing too many similar complaints.

“My intuition is that the members of this committee are going to want to do something about this problem, at least as it relates to those who seem to be at the center of the greatest controversy,” Carona said. “Ocwen would be one of them and American Home Mortgage Services would another. I think it’s very unfortunate they chose not to be here today.” Carona continued.

Sen. Chris Estes, R-Wichita Falls, said the “good players” usually show up to testify and “the ones that are a little sketchy don’t.”

“Those people who are abusing the citizens of Texas by shoddy business practices should be called-out one way or the other, legally or legislatively,” Estes said.

The Texas Department of Savings and Mortgage Lending could regulate mortgage servicers but right now servicers only register with the state on a voluntary basis.

“This is a rare event,” said Robert Doggett, of Texas Rio Grande Legal Aid. “We don’t often have committees for the business and commerce that have cared about loan servicing until today. So, it is an important day.”

And homeowners like the Christopher’s say, after getting the run-around for so long they are relieved someone is listening.

“They were actually listening to what was going on and everything we said,” said Connie Christopher. “They had heard some if it before. You could tell that.”

Connie Christopher’s husband, Kevin was happy to finally be a part of the process.

American Home Mortgage Servicing, Inc. sent FOX 4 the following statement:

“We are currently involved in litigation with the Office of the Attorney General of Texas. We intend to defend the suit vigorously and believe it is without merit; however, in the meantime we cannot make any statements while litigation is pending.”

Ocwen Financial Corporation also sent FOX 4 a statement:

“Ocwen works hard to help distressed homeowners keep their homes, mainly via affordable, sustainable loan modifications. We’ve helped well over 100,000 customers in distress avoid foreclosure since the start of the housing crisis, largely through mortgage modifications. In fact, we’ve been regularly recognized in government, industry and community group circles as a leader in foreclosure prevention. While foreclosures are sometimes unavoidable, and that is often a tragedy for the homeowner, we continue to urge any of our customers who may be having trouble to be in touch with us

– and persistent and patient with all the paperwork; in most cases we will be able to help them keep their home via a modification or other arrangement.”

FOX 4 will keep following this story and let you know of any changes in regulations for mortgage servicing companies in Texas.