HAMP Denials Violate Fifth Amendment Suit

[davephx]

HAMP Denials Violate Fifth Amendment Suit

11/9/09 - Four homeowners from Queens and Brooklyn filed a federal class action lawsuit against Aurora Loan Services - a subsidiary of Lehman Brothers - for allegedly not considering their loans for modification under the Home Affordable Modification Program (HAMP).

In the suit, attorneys for the plaintiffs claim that those parties allegedly failed to ensure that homeowners were afforded their full due process rights as stated in the US Constitution.

The suit cites that Aurora allegedly violated the Fifth Amendment that states, “No person shall…be deprived of life, liberty, or property, without due process of law…”

The plaintiffs request a preliminary and permanent injuction, preventing Aurora from engaging in unjust and unreasonable practices and seeks a court order to Aurora to provide a meaningful notice of HAMP denial, the specific reasons and a process to challenge the denial.

According the most recent data released by the Treasury, Aurora has started trial modifications on 33% of its eligible portfolio for HAMP, the third highest of any participating servicer.

“By launching HAMP, the Obama Administration took a significant step to stem the devastating effects foreclosures have on families and their communities. However, in order for the program to achieve its purpose and prevent foreclosures, mortgage servicers must be required to properly implement the program,” said Oda Friedhelm, an attorney with the Legal Aid Society’s Civil Law Reform Unit and lead counsel for the case.

Full article at
No HAMP For You! NYC Homeowners Sue Over Mods : HousingWire || financial news for the mortgage market
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[SillyWorld]

Good for them... I hope the Family gets the HOME PAID for FREE and clear, all 4 of them We need a MILLION more cases like this and on all servicers

[Fedup]

Dave,

Dang you sure got my attention on this one! Last night I wrote this on the forum responding to an article posted by Irish Gal on the Deutsche Bank thread.....

* Negate "Non-Judicial Foreclosure" and institute a "Judical Foreclosure"
process on residencial real estate foreclosure, which would allow the
citizen to file their discovery pro se or with their attorney of choice.

What the hell happened to being hauled into court by the foreclosing party so we could Defend ourself.....at present the Scales of Justice are toally in favor of Goliath on this issue. We have no judicial recourse in this "flim-flam" mortgage market.....it's either "pay-up or shut-up" or spend more badly needed funds suing the Goliath foreclosing party who can drag out a lawsuit against a person for years.

I love this.....Due Process at its Fineness! Thanks Dave for the digging

Gary

[Fedup]

Ya Know..... mabe this would a good time to Organize and Submit Complaints in the HAMP HELL people have noted to the forum on so many differnt threads and the other main forums!?? Dave's response to the Denver Post "puff-piece" is a good example. Everyone here has told a story to the forum.....how about getting this more review in the Press by those of us on Main Street rather than the Wall Street crowd!

Since this is a class action suit.....for those of you denied, after going through your "trial period", I see a good posibility for resolution. Don't forget all of the "servicers" excuses for denial!

Go For It.....

Gary

[davephx]

We need attorney willing to take on a larger class action suit.

The problem is like in the Minnesota case that I have heard no updates lately, it could take years for anything to happen in the Courts. Doing the petition to Congress as well as sending in complaints to your congress folks and getting the media attention applies pressure for more immediate attention.

The new "shame" report that Treasury was able to force the servicers to do will be out in a few days. It will be interesting to see what progress has been made.

[Fedup]

Just a short queation Dave,

What would stop others from around the country from enjoining this Class Action Suit on the same grounds? Is this limited to the state of NY.....Or?

Gary

[davephx]

First need to find a lawyer.

Note that both the Minnesota and NY case are non profit groups, in Minnesota it is The Legal Aid Society in New York City. There may not be any big fees to win for regular attorneys to make enough on.

Its more about getting them to take notice

The article doesn't say who the "class" is but it may be all with Aurora as servicer.

[davephx]

The Minnesota case is supposed to be able to be followed at
Housing Preservation Project - Projects

But the latest affadavit was 9/25. Lots of good stuff there including Senator Dodd letter To Treasury and HUD but most all from back in July.

There was to be a hearing on motions like in August but nothing I find has been reported on anything recently.

[Fedup]

I Hate this 5 minute edit limit

Question for Dave,

Since HAMP is a Federal Program, how can or could it be limited by any State doctrine and further eroded by any banking entities doing business in the State, under the laws of a State?

Am I missing some thing here?

Gary

[davephx]

Actually the Treasuries latest Amended Response from end of September lays out in huge detail how the Treasury has/is trying to make the program work. Again its servicers not Treasury that is the bad guy here.

See http://www.hppinc.org/_uls/resources...-_Geithner.pdf

The responses from Ocwen , GMAC and US Bank is more of interest.

But they are the only servicers in the suit since the folks in the initial class used them

[Fedup]

Dave,

Aren't we missing a hugh point from the Constitutional side of this issue. The Treasury is a mouth piece for the Federal Reserve, my question goes to the right of a State to trump Federal law.

Gary

[Fedup]

Just one more thing which I'd like to say to others out there, and Dave I know your aware of this but others are not, the Federal Reserve is a Private Bank and is NOT an institution under control of the US Government.....IT'S A PRIVATE BANK created in 1913 by Woodrow Wilson, president, who signed the Federal Reserve Act!

Gary

[AZOwner]

State cannot trump federal law. 18 AGs did request the right to enforce Federal law, in October, in response to the request to have a new agency created for consumers, at the federal level. (CA was on this list as was AZ, and the letter is on the AG website in AZ -- I will send a copy if you wish)

If the class action was filed in a state court, only those state residents can join -- if filed in Federal Court, they can represent across state lines. Class actions are historically successful on a state level and difficult and time consuming to be heard in Fed Court -- that is why most of the class actions revolving around this issue have been filed in state.

[caldwellb02]

this is a great thread and I can't absorb it all now because I have to go to work but I would assume that this would also apply to people like me who have been trying for 10.5 months just to get any type of mod.

[davephx]

Both the Mn and NY cases are in Federal Court, where I think it also has to be on the Constitutional issues.

The lawyers I believe can only represent clients in states the lawyer is licensed that is why I assume they are all state specific.

Having State Attorney Generals involved obviously helps!

But the Federal Court System is backed up years. So in my view the lawsuits are good for attention to the problem and hopefully gets media attention but an actual Court ruling is many many years away.

Fedup- I don't understand why the Fed being a sort of private bank has any relevance they aren't even in the suit.

I don't understand issue of States doing anything over Fed. The lawsuit is in Federal Court on behalf of Mn/NY clients where the lawyer can practice and represent them.

The State AG's offices in other lawsuit was different matter and even them winning are still having problems getting compliance.

State AG's can bring Federal Action or sue separately on State laws.

[worrywart1]

Originally Posted by AZOwner

State cannot trump federal law. 18 AGs did request the right to enforce Federal law, in October, in response to the request to have a new agency created for consumers, at the federal level. (CA was on this list as was AZ, and the letter is on the AG website in AZ -- I will send a copy if you wish)

If the class action was filed in a state court, only those state residents can join -- if filed in Federal Court, they can represent across state lines. Class actions are historically successful on a state level and difficult and time consuming to be heard in Fed Court -- that is why most of the class actions revolving around this issue have been filed in state.

I would love for you to forward the info to me please. I reside in AZ...much obliged.

[worrywart1]

It sounds like this case might have some legs and that is why I'm going to look into this further.

I too find it unfair that my husband and I are not allowed to face our servicer in court for they too have refused to modify our loan.