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< Back To Foreclosure Relief Law Project
On July 28, 2009, two Minnesota homeowners sued the government alleging that the administration of the federal foreclosure prevention and loan modification program violated their procedural due process rights. Specifically, the Home Affordable Modification Program does not require the government to provide written notice of the specific reasons for a denial and notice of a right to appeal, a uniform procedure for appealing an adverse decision, and a method to undo a foreclosure that was done in violation of program guidelines or otherwise unlawful.
HAMP is part of a $50 to $75 billion government effort to prevent foreclosures. In administering this large government program, HAMP needs transparency and accountability. The lawsuit is a class action on behalf of all Minnesota homeowners who are eligible for HAMP and have similarly been denied due process. It is modeled after a series of successful lawsuits in the early 1980s, in which farmers obtained a moratorium until the government promulgated adequate rules and regulations related to its farm foreclosure prevention program.
Documents Related To The Lawsuit
- Secretary Geithner/U.S. Treasury Dept's Motion To Dismiss Complaint
- Fannie Mae/Freddie Mac's Motion To Dismiss Complaint
- Federal Housing Finance Agency's Motion To Dismiss Complaint
- Ocwen Loan Servicing's Motion To Dismiss Complaint
- GMAC Mortgage's Motion To Dismiss Complaint
- US Bank’s Motion To Dismiss Complaint
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General Accountability Office Report, Treasury Actions Needed to Make the Home Affordable Modification Program More Transparent and Accountable (July 2009)
HAMP Supplemental Directive 09-01 (April 6, 2009)
Senator Dodd Letter to Treasury Secretary Expressing Concerns About the Administration of HAMP
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