Skip to main content

Firm Files Class Action Suit Against Ocwen and Saxon for HAMP Denials

Sep 15, 2011

The Philadelphia-based law firm of Berger & Montague PC has filed a class action complaint on behalf of all Michigan homeowners whose mortgage loans have been serviced by Saxon Mortgage Services Inc. and/or Ocwen Loan Servicing LLC, and who, since April 13, 2009, 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 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, filed in the United States District Court for the Eastern District of Michigan, alleges that Saxon and Ocwen agreed to participate in HAMP, and are obligated to modify mortgage loans they service for homeowners who qualify under HAMP. The lawsuit alleges that defendants systematically slow or thwart homeowners’ requests to modify mortgages in order to collect higher fees and interest rates associated with stressed home loans. Members of the proposed class action suit applied for HAMP loan modifications from the defendants, were prequalified for the program, and received TPP contracts calling for them to make three modified loan payments and submit certain financial documentation if they had not already done so. Despite fulfilling these obligations under the TPP contracts with defendants, they did not receive permanent HAMP modifications of their loans, nor did they receive timely written notifications explaining the reasons for defendants’ denials.
About the author
Published
Sep 15, 2011
Industry Input Sought On Proposed Increases To Mortgage Licensing Fees

Conference of State Bank Supervisors seeking public comment on proposed increases

Beware Of Ownership Interest

Minimizing overlap ensures compliance with independent lender counsel

Building A Digital Bridge Between Separate Revenue Streams

Menu cloud-based technology capitalizes on the entire borrowing cycle

Economists Less Confident Rates Will Drop Following Fed Decision

After sixth consecutive month with no change, the likelihood of cuts in 2024 feels "more out of reach."

FHFA Final Rule Released

Rule codifies equitable housing programs, GSE Plans

FDIC Announces Closure Of Republic First Bank

The Philadelphia-based lender's 32 branches will now be served by Fulton Bank