Bank of America loses bid to dismiss HAMP class action

Posted on: July 28th, 2011 by Steve Larson

A federal judge has denied Bank of America’s motion to dismiss a class action lawsuit that alleges the bank improperly denied loan modifications under the Home Affordable Modification Program.

In her ruling, U.S. District Court Judge Rya Zobel of Massachusetts also clarified which homeowners could continue to pursue legal claims over the bank’s handling of HAMP cases.

The lawsuit originally sought to represent all homeowners whose mortgages were serviced by Bank of America.  Judge Zobel ruled that only those who were accepted in a HAMP trial-period plan but were not given permanent HAMP modifications or written notice that their application had been denied will be allowed to continue with their claims.

Judge Zobel also ruled that plaintiffs living in California, Illinois, Arizona, Massachusetts, Oregon, Maryland, New Jersey, Pennsylvania and Wisconsin can pursue claims under their state laws.