A federal judge refused to dismiss a case filed against Bank of America (BAC) by homeowners who claim the banking giant wrongfully denied them a chance to modify distressed loans under the government’s Home Affordable Loan Modification Program, or HAMP. HAMP was created by the federal government to provide billions of dollars of support to the housing market by encouraging lenders to modify loans to stave off foreclosures. The case – In Re Bank of America Home Affordable Modification Program Contract Litigation – was green-lighted to go forward by Massachusetts U.S. District Judge Rya Zobel after she denied BofA’s motion for dismissal on several grounds including the judge’s determination that “the motion to dismiss the state consumer protection claims fails on the merits or is premature.” The litigation is the result of 26 separate cases filed by homeowners in 19 states. Those claims were consolidated and transferred to the Massachusetts federal court by the Judicial Panel on Multidistrict Litigation. Bank of America responded to the lawsuit saying, “The bank is pleased that the court dismissed four of the eight counts in the consolidated complaint, including the nationwide claims.” In the judge’s ruling, she found the plaintiffs “lacked standing to bring both their breach of contract and promissory estoppel claims.” The court added, “Plaintiffs’ claims for breach of the duty of good faith and fair dealing fail because they have not stated a claim for breach of contract. The covenant of good faith and fair dealing is implied in every contract.” Write to Kerri Panchuk.
Federal judge refuses to dismiss BofA HAMP case
Most Popular Articles
Latest Articles
Labor market report is good news for mortgage rates
Friday’s jobs report came in as a miss of estimates and wage growth came in lower than expected, which is good news for mortgage rates.
-
Virginia Realtors: Zillow’s touring agreement may not be legal
-
Low inventory creates challenging conditions in North Carolina’s housing market
-
Tri-state area housing shortage could cost the region economically
-
Remote reverse mortgage counseling now permanently permitted in Massachusetts
-
NAR settlement terms slated to go into effect in mid-August