Homeowners Target Morgan Stanley Unit Over HAMP Loans

Law360, New York (August 17, 2011, 11:03 PM EDT) -- A Morgan Stanley subsidiary was hit with another class action Tuesday alleging it accepted millions of dollars from homeowners who participated in the federal Home Affordable Modification Plan, only to eventually deny their requests for loan assistance in avoiding foreclosure.

The complaint, brought in New York federal court by Ranujoy and Debora Pandit, alleges that Saxon Mortgage Services Inc. regularly conducted its business in bad faith and misled homeowners to believe they would receive mortgage modifications if they followed the process according to the program's guidelines....
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