Bank of America Sued for Violating HAMP Guidelines

April 9, 2010 - Bank of America is facing a class-action lawsuit in federal court filed by angry homeowners. According to reports at The Courthouse News Service, Suzanne and Greg Bayramian are suing Bank of America, alleging that the lending institution failed to follow the guidelines governing the Home Affordable Modification Program (HAMP). HAMP is a billion-dollar effort to prevent foreclosures by giving banks incentives to modify the loans of distressed homeowners.

According to the lawsuit, Bank of America is not responding to repeated requests for loan modifications under the HAMP program. The guidelines specify that lending institutions must evaluate a homeowner's request for a loan modification and cannot process a foreclosure during that evaluation process. The Bayramians allege that Bank of America told them that the HAMP program was not up and running yet, even though it was months after Bank of America joined the program. 

As of now, the Bayramians still have not been told if they can apply for a loan modification through the HAMP program and they do not if they will lose their home to a foreclosure.