Hazards Of The Home Affordable Modification Program

Law360, New York (May 14, 2010, 2:13 PM EDT) -- Mortgage loan servicers participating in the Home Affordable Modification Program (HAMP) should keep an eye on emerging enforcement and litigation risks relating to their loan modification activity.

The U.S. Department of Justice is enhancing its capabilities to investigate discrimination claims relating to loan modifications; the U.S. Treasury plans to examine servicers’ compliance with HAMP requirements; and private lawsuits have emerged alleging that servicers are not living up to their HAMP obligations.

In addition, the federal bank regulatory agencies can be expected to emphasize loan servicing in...
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