This is a guest post by Martin Andelman of Mandelman Matters which also appears on his blog.
Well, it looks like the day has finally come, and the world finally feels like it might someday soon make sense once again. The banks are finally going on trial over their handling of HAMP loan modifications. Here’s a trial I’d like to be able to order on Pay-Per-View.
The Boston-based, nonprofit, and EXTREMELY formidable National Consumer Law Center (“NCLC”), along with co-counsel, has brought four class action lawsuits on behalf of the residents of Massachusetts that challenge the failure of Wells Fargo Bank, Bank of America, J.P. Morgan Chase Bank and IndyMac Mortgage Servicers/OneWest Bank to honor their agreements with borrowers to modify mortgages and prevent foreclosures under the United States Treasury’s Home Affordable Modification Program (“HAMP”).
Yes, you read that right. NCLC, et al, are suing the banks over the travesty that is HAMP. We’ve all been waiting for this day for a long time now, and it finally arrived. So, don’t rush through this article, revel in it.
It’s like I always say:
If anything good ever happens in the foreclosure crisis… celebrate immediately!
The complaints, filed in the United States District Court for the District of Massachusetts, assert such claims as breach of contract, breach of the implied covenant of good faith and fair dealing, and promissory estoppel under Massachusetts common law arising from the financial institution’s alleged failure to keep its promises to modify eligible loans in order to prevent foreclosures against homeowners who have lived up to their end of the bargain as required by HAMP.
Go ahead… I know you want to read that paragraph again. I know you want to… so, here it is:
The complaints, filed in the United States District Court for the District of Massachusetts, assert such claims as:
- Breach of contract
- Breach of the implied covenant of good faith and fair dealing
- And promissory estoppel under Massachusetts common law arising from the financial institution’s alleged failure to keep its promises to modify eligible loans in order to prevent foreclosures against homeowners who have lived up to their end of the bargain as required by HAMP.
This looks to me to be the real deal. There’s no question that NCLC is an organization to be taken very seriously. Here’s how they describe themselves:
The National Consumer Law Center is the nation’s consumer law expert, helping consumers, their advocates, and public policymakers use powerful and complex consumer laws on behalf of low-income and vulnerable Americans seeking economic justice. A top priority for NCLC is providing support on issues involving consumer fraud, debt collection, consumer finance, energy assistance programs, predatory lending, and sustainable home ownership programs.
NCLC is governed by a volunteer national board of directors which includes Mike Ferry, president, as well as bar associations representatives from the private bar, and clients from the communities we serve.
NCLC has been awarded a four-star rating for sound fiscal management by Charity Navigator, one of the country’s premier charity evaluators. This exceptional rating reflects NCLC’s ability to efficiently manage and grow its finances. To look at the complete rating, visit www.charitynavigator.org.
Are you getting all hot and bothered? I am. Want to make a donation? Support the cause, as it were? Honestly, I can’t think of a better one at the moment… I know there’s the oil in the Gulf, but shouldn’t BP, the 4th largest corporation in the world be taking care of that unthinkable mess. Click the link below: I’m sure any amount will be appreciated, and put to good use.
HELP NCLC HOLD THE BANKS ACCOUNTABLE FOR WHAT THEY’VE DONE UNDER HAMP:
And, in the “Comments” box on the donate form please type in “Mandelman Matters”. I have no idea why, I just feel like I want them to know your donation came from here. (If you wouldn’t mind, of course. If it bothers you, for whatever reason… then never mind.)
If nothing else, may I suggest…