Class Action Complaint Filed Against EMC Mortgage and Bear Stearns for Loan Mod Breach – NMP Skip to main content

Class Action Complaint Filed Against EMC Mortgage and Bear Stearns for Loan Mod Breach

Jan 11, 2011

Keller Rohrback LLP has announced that a class action has been filed in the United States District Court for the Eastern District of Washington on behalf of all mortgagors in the State of Washington whose home mortgage loans are serviced by EMC Mortgage Corporation and who (a) have attempted to obtain loan modifications of their loan terms from EMC; and (b) have made payments pursuant to a "Repayment Agreement," a Home Affordable Modification Program (HAMP) trial modification plan, or any other temporary modification plan. The complaint alleges, among other things, that the defendants: Engaged in bad faith as to home mortgage loan modification negotiations; led mortgagors to reasonably believe and rely on defendants' representations that they would permanently modify their mortgage loans upon successful completion of "Repayment Agreements" or other trial programs; charged unreasonable, unlawful or excessive fees; failed to properly disclose and/or concealed fees and other charges; failed to provide to mortgagors a proper or comprehensible accounting of fees, payments, credits, arrearages, and amounts owed; improperly or under-applied mortgage payments to accounts; and breached "Repayment Agreements" or other trial modification program contracts or promises. The complaint has been filed pursuant to the Washington Consumer Protection Act and contains additional claims for breach of contract, breach of the duty of good faith and fair dealing, promissory estoppel, and unjust enrichment. Keller Rohrback is also investigating the following mortgage loan servicers regarding mortgage loan modifications in Washington and elsewhere: American Home Mortgage Servicing Inc. Aurora Loan Services LLC Citimortgage Inc. GMAC Mortgage Inc. JPMorgan Chase Bank NA Litton Loan Servicing LP Nationstar Mortgage LLC OneWest Bank SunTrust Mortgage Inc. For more information, visit www.kellerrohrback.com.
About the author
Published
Jan 11, 2011
IMBs Make Most Mortgages. CHLA Says It’s Time They Got FHLBank Access.

As FHFA moves to give Federal Home Loan Banks more flexibility, the trade group is renewing its push to give qualified independent mortgage banks access to FHLBank membership and liquidity

Insuring The Risk To Lenders At Closing

Traditional protections like title insurance and closing protection letters may leave lenders exposed to significant settlement, funding, and fraud-related losses

CHLA Uses Trump Mortgage Order To Renew Push For LO Comp Reform

Community lenders want more flexibility over employee compensation, closing-cost estimates, down payment assistance, and federal supervision of smaller IMBs

Servicers Begin Testing Systems Ahead of VA Partial Claim Deadline

VA lenders and servicers have until Nov. 28 to implement the new loss mitigation waterfall and Partial Claim Program

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

CRA Proposal Could Reshape Bank Lending And Affordable Housing Investment

The OCC and FDIC would put more weight on lending while easing community development requirements for hundreds of banks