Parade Of HAMP Lawsuits Seeking Class Action Status Continues; Banks Accused Of Stiffing Homeowners On Loan Modifications, Despite Pocketing TARP Ca$h

In Cleveland, Ohio, WKYC-TV Channel 3 reports:

• On behalf of homeowners in Cleveland and Parma, attorneys filed two similar class-action lawsuits -- one against US Bank Home Mortgage and the other against Bank of America and BAC Home Loan Servicing, LP [Monday].

• The lawsuits allege that both have failed to offer permanent loan modifications to eligible homeowners participating in good faith in the Home Affordable Modification Program.(1)

• In statements [Monday], attorneys Marc Dann and James Douglass said the banks failed to offer permanent home loan modifications, despite both banks' entering into agreements with these homeowners and accepting federal funds to participate the program.

• The class-action lawsuits allege that both banks failed to fulfill obligations under the federal Home Affordable Modification Program. [...] Both Bank of America and US Bank agreed to participate in the HAMP program when they accepted funds from the Federal government as part of the Troubled Asset Relief Program (TARP).(2)

For more, see Attorneys file class-action lawsuits against US Bank, Bank of America.

(1) According to a complaint filed in an unrelated lawsuit (at paragraph 5), "Though Bank of America accepted $25 billion in TARP funds and entered into a contract obligating itself to comply with the HAMP directives and to extend loan modifications for the benefit of distressed homeowners, Bank of America has systematically failed to comply with the terms of the HAMP directives and has regularly and repeatedly violated several of its prohibitions."

(2) For a sampling of other similar HAMP-related lawsuits brought against lenders & loan servicers for allegedly stringing borrowers along with empty loan modification promises, see:

• State of Arizona v. Countrywide Financial Corporation, et al.,
• State of Nevada v. Bank of America Corporation, et al.,
• Bosque v. Wells Fargo, Class Action Amended Complaint (Exhibits: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11 - eight-page demand letter (offering Wells Fargo opportunity to settle HAMP claims)),
• Johnson v. Bank of America Home Loans Servicing, Class Action Amended Complaint,
• Durmic v. J.P. Morgan Chase, Class Action Complaint,
• Reyes v. OneWest, Class Action Amended Complaint,
• Belyea v. Litton Loan Servicing, Class Action Amended Complaint,
• Ponder et al. v. Bank of America, BAC Home Loans Servicing,
• Fraser v. Bank of America, N.A., et ano., Class Action Complaint.