A lawsuit against a mortgage loan servicer is a personal injury action.

Interesting article in The Huffington PostFacing Foreclosure Without Missing A Payment:  One Couple’s Housing Nightmare 

When you finally enter the mortgage loan servicer’s consciousness as a potential threat, they can be incredibly efficient at correcting your account and restoring your credit. It sounds like the couple had a good lawyer.

Now they can sue the loan servicer for their pain and suffering, lost income, damage to credit, etc.  The couple had no contract with the servicer, so a lawsuit against the servicer would essentially be a personal injury action, for which they can recover much larger damages than breach of contract.