Onity Group Inc. (NYSE: ONIT) has filed a declaratory judgment action in the U.S. District Court for the Northern District of New York, seeking judicial clarification on how a New York mortgage servicing regulation applies to optional expedited payment fees, according to a company statement.

The regulation in question permits fees if they are "reasonably related to the cost of rendering that service," but Onity Group says that phrase has not been defined in the rulemaking record, published guidance, or in response to the company's inquiries in the nearly seven years since the regulation was adopted.

The complaint asks the court to determine whether the regulation provides the fair notice and objective standards required by the U.S. Constitution.

In its statement, the West Palm Beach, Florida-based company said the fees at issue are optional, with customers able to pay at no cost through several methods. Customers who choose a faster payment option receive advance disclosure of the fee, notice of free alternatives, and are asked to consent before being charged. The company also said it has voluntarily reduced these fees and eliminated them for online and automated phone payments.

"Because that standard remains undefined, we believe a court is the appropriate place to resolve the issue," the company said in the statement, adding that it remains prepared to meet any clearly defined standard.