Thursday, August 1, 2013

Bank of America waits to learn about class-action request in HAMP case

A hearing on a class-action certification request in case involving homeowners suing Bank of America over denied mortgage modifications was held Thursday, although no ruling has been made.

The request is in the hands of Judge Rya Zobel, of U.S. District Court in Massachusetts. It’s unclear when Zobel might rule.

The homeowners are claiming that the Charlotte-based bank rejected eligible borrowers seeking to reduce their loan payments under the federal Home Affordable Modification Program. Launched in 2009, HAMP was designed to help struggling homeowners avoid foreclosure.

In June, seven former Bank of America employees filed statements claiming that they were promised bonuses and gift cards if they delayed or rejected modification requests.

The bank has denied those allegations. Last month, in response to the former workers’ claims, the bank said the employees had made “wild misrepresentations” about their actual roles in HAMP.

According to court documents, the homeowners are seeking to certify 26 classes involving borrowers from 26 states. Bank of America has objected to the class-action request.