Philadelphia, PA: A class action complaint has been filed on behalf of all Michigan homeowners whose mortgage loans have been serviced by Saxon Mortgage Services, Inc. and/or Ocwen Loan Servicing, LLC (collectively "Defendants"), and who, since April 13, 2009, (1) have entered into a Trial Period Plan ("TPP") contract with Defendants and made all payments as required by their TPP contract and complied with Defendants' requests for documentation, and (2) have not received or have been denied a permanent Home Affordable Modification Agreement that complied with the U.S. Department of the Treasury's Home Affordable Modification Program (" HAMP ") rules.
The Complaint alleges that Saxon Mortgage Services, Inc. and Ocwen Loan Servicing, LLC agreed to participate in HAMP, and are obligated to modify mortgage loans they service for homeowners who qualify under HAMP, a federal program designed to abate the foreclosure crisis by providing mortgage loan modifications to eligible homeowners. The lawsuit alleges that Defendants systematically slow or thwart homeowners' requests to modify mortgages in order to collect higher fees and interest rates associated with stressed home loans.
Members of the proposed class applied for HAMP loan modifications from Defendants, were prequalified for the program, and received TPP contracts calling for them to make three modified loan payments and submit certain financial documentation if they had not already done so. Despite fulfilling these obligations under the TPP contracts with Defendants, they did not receive permanent HAMP modifications of their loans, nor did they receive timely written notifications explaining the reasons for Defendants' denials.