Less than two months after settling a lawsuit with the Ohio Attorney General, Carrington Mortgage Services received approval to pool and service federally insured loans for Ginnie Mae. Ginnie guarantees timely principal and interest payments on mortgage-backed securities containing loans insured by the Federal Housing Administration and Veterans Affairs. Carrington, based in Santa Ana, Calif., is licensed to lend and broker loans in 37 states. The Ginnie approval provides the company an opportunity to grow by adding FHA loans to its servicing portfolio. "This approval expands our capabilities as a mortgage originator and servicer, and ultimately allows us to better serve our retail and wholesale customers," said Steve Patton, executive vice president for Carrington's mortgage lending division. In 2008, then Ohio AG Richard Cordray called the Carrington servicing practices into question. In lieu of legal action, Carrington committed to make efforts to provide more mortgage modifications. But in 2009, Cordray and the Ohio Department of Commerce filed a joint complaint, alleging Carrington did not fulfill its end of the deal. The two sides settled in May, with Carrington agreeing to provide relief to 60 Ohio homeowners but admitting no wrongdoing. Cordray has since been nominated to lead the Consumer Financial Protection Bureau, and Patton said Carrington is moving on to continue growing its business with this new approval. "As others exit the origination sector, particularly in wholesale, Carrington is committed to increasing its presence and providing needed liquidity for qualified borrowers, as well as high quality investments for purchasers of our GNMA securities," Patton said. Write to Jon Prior. Follow him on Twitter @JonAPrior.