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.

The Parade Continues: Northern California Homeowner Jumps On Ever-Growing Bandwagon Of Class Action Status-Seeking HAMP Homeowners Suing Servicers

In San Francisco, California, BusinessWeek reports:

• A California homeowner is suing the mortgage servicing unit of Morgan Stanley, claiming the company had no intention of permanently modifying her home loan payments to an affordable amount despite having her make a slew of trial payments under a federal program designed to help homeowners avoid foreclosure.
• The complaint, which was filed Thursday in U.S. District Court for the Northern District of California, accuses Saxon Mortgage Services Inc. of breach of contract and deceptive debt collection, among other claims, and seeks class-action status.

For more, see Homeowner sues mortgage servicer over HAMP denial.

Go here for earlier posts on the ever-growing 'HAMP Parade.'

Philly Firm Flags CitiMortgage With 2nd HAMP Suit; Complaints Requesting Class Action Status Filed On Behalf Of Keystone, Garden State Homeowners

In Philadelphia, Pennsylvania, the law firm of Berger & Montague, P.C. recently announced:

• The law firm of Berger & Montague, P.C. has filed a class action complaint in the United States District Court for the Eastern District of Pennsylvania on behalf of all Pennsylvania homeowners whose mortgage loans have been serviced by CitiMortgage, Inc., and who, since April 13, 2009, (1) have entered into a Trial Period Plan (“TPP”) Contract with CitiMortgage and made all payments as required by their TPP Contract and complied with CitiMortgage’s requests for documentation, and (2) have not received or have been denied a permanent Home Affordable Modification Agreement that complied with the U.S. Department of the Treasury’s Home Affordable Modification Program (“HAMP”) rules.

***

• The Complaint alleges that CitiMortgage accepted billions in government bailout money under the Troubled Asset Relief Program (“TARP”) earmarked to help struggling homeowners avoid foreclosure. CitiMortgage, like other TARP-funded financial institutions, is contractually obligated to modify mortgage loans it services for homeowners who qualify under HAMP, a federal program designed to abate the foreclosure crisis by providing mortgage loan modifications to eligible homeowners.

For the press release, see Berger & Montague, P.C. Files Class Action Lawsuit Against CitiMortgage, Inc. on Behalf of Pennsylvania Homeowners.

For the lawsuit, see Whiting v. Citimortgage, Inc. (April 1, 2011).

See also, Silva v. Citimortgage, Inc. (March 11, 2011) for a similar lawsuit filed by this firm on behalf of screwed-over New Jersey homeowners.

See Parade Of HAMP Lawsuits Seeking Class Action Status Continues; Banks Accused Of Stiffing Homeowners On Loan Modifications, Despite Pocketing TARP Ca$h for links to some of the complaints filed in an ever-growing list of HAMP-related, loan modification lawsuits.

Parade Of Homeowners Bringing HAMP Lawsuits Continues; Missouri Class Action Says BofA Refuses To Follow Loan Mod Rules Despite $25B TARP Cash Grab

In St. Louis, Missouri, Courthouse News Service reports:

• The seemingly endless string of class actions against Bank of America's foreclosure policies continued here in Federal Court. The class claims that BofA and BAC Home Loans Servicing refuse to participate in foreclosure prevention programs despite taking $25 billion in Troubled Asset Relief Program money.(1)

• Lead plaintiff Susan Fraser says Bank of America, by accepting the TARP money, agreed to participate in at least one TARP-authorized program to minimize foreclosures. The complaint echoes similar complaints filed last week by the attorneys general of Arizona and Nevada.(2) BAC Home Loans Servicing is also named as a defendant in the St. Louis complaint.

***

• The class consists of all eligible homeowners who have been serviced by one or both defendants who have not received a permanent modified loan. The class seeks an injunction and damages. It is represented by Michael Flannery with Carey Danis & Lowe.

For more, see Bank Slammed With Another Class Action.

For the lawsuit, see Fraser v. Bank of America, N.A., et ano.

(1) "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," the complaint states.

(2) See The New York Times: Two States Sue Bank of America Over Mortgages.

For the lawsuits, see:

• State of Arizona v. Countrywide Financial Corporation, et al.,
• State of Nevada v. Bank of America Corporation, et al.

(3) 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:

• 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.

Citimortgage Tagged With NJ Suit As HAMP Class Action Parade Continues; Loan Servicer Allegedly Grabbed TARP Cash, Stiffed Loan Mod-Seeking Homeowners

From the Office of Berger & Montague, P.C.:

• The law firm of Berger & Montague, P.C. has filed a class action complaint in the United States District Court for the District of New Jersey on behalf of all New Jersey homeowners whose mortgage loans have been serviced by CitiMortgage, Inc., and who, since April 13, 2009, (1) have entered into a Trial Period Plan (“TPP”) contract with CitiMortgage and made all payments required by their TPP contract, but (2) have been denied a permanent loan modification agreement that complied with the U.S. Department of the Treasury’s Home Affordable Modification Program (“HAMP”) rules.

***

• The Complaint alleges that CitiMortgage accepted billions in government bailout money under the Troubled Asset Relief Program ("TARP") earmarked to help struggling homeowners avoid foreclosure. CitiMortgage, like other TARP-funded financial institutions, is contractually obligated to modify mortgage loans it services for homeowners who qualify under HAMP, a federal program designed to abate the foreclosure crisis by providing mortgage loan modifications to eligible homeowners.

• According to the lawsuit, CitiMortgage systematically slows or thwarts homeowners' requests to modify mortgages, depriving borrowers of federal bailout funds that could save them from foreclosure. The bank ends up reaping the financial benefits provided by TARP-funds and also collects higher fees and interest rates associated with stressed home loans.

For the press release, see Berger & Montague, P.C. Files Class Action Lawsuit Against CitiMortgage, Inc.

For the lawsuit, see Silva v. Citimortgage, Inc.

Suit: Saxon, Ocwen Stiffed Pennsylvania Homeowners Seeking Loan Mods; Complaint Seeks Class Action Status As HAMP Federal Litigation Parade Marches On

From a press release from the Philadelphia, Pennsylvania-based law firm of Berger & Montague, P.C.:

• The law firms of Berger & Montague, P.C. and Ann Miller, LLC have filed a Class Action complaint in the United States District Court for the Eastern District of Pennsylvania on behalf of all Pennsylvania homeowners whose mortgage loans have been serviced by Saxon Mortgage Services, Inc. and/or Ocwen Loan Servicing, LLC, and who, since April 13, 2009, (1) have entered into a Trial Period Plan ("TPP") contract with Defendants and made all payments as required by their TPP contract and complied with Defendants' requests for documentation, and (2) have not received or have been denied a permanent Home Affordable Modification Agreement in accord with the U.S. Department of the Treasury's Home Affordable Modification Program ("HAMP") rules.

For more, see Pennsylvania Homeowners File Class Action Against Saxon Mortgage Services, Inc. and Ocwen Mortgage Servicing, LLC for Wrongfully Denying Mortgage Modifications.