HAMP Participants Have Contract Rights, 7th Circ. Rules
By Keith Goldberg
Law360, New York (March 9, 2012, 3:06 PM EST) -- Homeowners who have trial mortgage loan modification agreements with servicers under the federal Home Affordable Modification Program can sue for breach of contract and other state law claims, the Seventh Circuit said Wednesday, reviving a putative class action claiming Wells Fargo & Co. improperly refused to modify loans.
In a published opinion, a three-judge panel said that while the government program doesn’t confer a private federal right of action on borrowers to enforce its requirements, that doesn’t bar them from bringing state law claims such as...