Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau

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Showing 3 posts in HAMP.

Sixth Circuit Affirms that Michigan Mortgagees Need Not Disclose Who Owns the Note to Foreclose, and Borrowers Cannot State a Negligence Claim Based on Alleged Duties Under HAMP

In an opinion issued on July 6, 2015, which has been recommended for publication, the United States Court of Appeals for the Sixth Circuit affirmed the dismissal of several common claims made by borrowers in foreclosure-related litigation. In Rush v. Freddie Mac, the plaintiffs challenged a foreclosure on four grounds: they alleged that (1) Bank of America lacked standing to foreclose because there was no chain of title evidencing ownership of the loan; (2) Freddie Mac negligently failed to evaluate plaintiffs’ loan under the Home Affordable Modification Program (“HAMP”); (3) the foreclosure violated Michigan law; and (4) foreclosure by advertisement violated their due process rights. Read More ›

Minnesota Supreme Court Concludes Borrowers Have Private Right of Action Against Mortgage Servicers for HAMP Violations

The Minnesota Supreme Court ruled earlier this month that an individual borrower has a private right of action for damages under the Minnesota Mortgage Originator and Servicer Licensing Act (Minnesota Statute Chapter 58) for injury caused by a mortgage servicer’s failure to perform in accordance with its contracts with third-parties. The Court expressly held that an individual borrower can sue for violations of a Servicer Participation Agreement (SPA) governing a mortgage servicer’s involvement in the federal Home Affordable Modification Program (HAMP). Read More ›

Fourth's A Charm: Another nail in the HAMP litigation coffin, and other lessons

If you’re counting (we are), Spaulding v. Wells Fargo marks the fourth Circuit-level HAMP decision. Fittingly, it comes from the Fourth Circuit. The borrower’s claims for breach of contract, fraud, negligence, and unfair and deceptive practices were all dismissed on the pleadings. The borrower in Spaulding never received a Trial Period Plan (“TPP”), so the major headline from the opinion is that the court held, absent a TPP, borrowers cannot state claims for alleged violation of HAMP guidelines.   Read More ›