Court Ruled Bank of America CAN be sued for HAMP Denials as part of Racketeering charges
Homeowners who were denied HAMP, participated in a 2013 class action suit against Bank of America for non-participation in the Making Home Affordable Program, in spite of that requirement of the federal bailout. The 10th U.S. Circuit Court of Appeals, reversed a federal judge’s decision, reviving the 2013 RICO (Racketeer Influenced and Corrupt Organizations) claims against lender Bank of Amercia.
As part of the Bailout in 2008, Bank of America agreed to participate in the Making home affordable program, including the HAMP (Home Affordable Modification Program) as dictated by the federal government.
The Tenth Circuit’s decision held that the HAMP trial-plan offers contain enforceable promises to the bank’s customers, asserting: “Because the plaintiffs sufficiently allege the existence of a RICO association-in-fact enterprise distinct from BOA, Urban [Lending Solution]’s participation in the conduct of that enterprise, and that both defendants engaged in a pattern of racketeering activity, we reverse the district court’s dismissal of the plaintiffs’ RICO claim and remand for further proceedings.”
Steve Berman, managing partner in a recent press release stated, “We are more than pleased the court has ruled our complaint has sufficiently alleged that Bank of America’s massive HAMP mortgage-modification program was in fact a RICO enterprise. For years, we have tirelessly fought this major Wall Street kingpin to right the wrongs it committed against hundreds of thousands of homeowners and taxpayers who footed the $45 billion government bailout BoA took in, only to have it used to propagate a scheme to squeeze every dollar from BoA customers and wrongfully foreclose thousands of homes in the process.”
25px 0px 0px 0px