The Philadelphia-based law firm of Berger & Montague P.C. has filed a class action complaint in the U.S. District Court for the Eastern District of Michigan against Saxon Mortgage Services Inc. and Ocwen Loan Servicing LLC, charging the companies with improper loan modification practices.
According to a press statement issued by the law firm, the lawsuit is being filed on behalf of ‘all Michigan homeowners’ who allege that the servicers slowed or thwarted requests for mortgage modifications ‘in order to collect higher fees and interest rates associated with stressed home loans.’
The lawsuit adds that although homeowners were pre-qualified to participate in the Home Affordable Modification Program (HAMP) and had fulfilled their trial period plan obligations, the servicers prevented them from receiving permanent HAMP modifications of their loans and did not offer ‘timely written notifications’ explaining why they were denied.
