Bank of America moved to block a potential class-action suit in federal district court yesterday, saying the plaintiffs had failed to produce evidence of widespread abuses.
The case before U.S. District Judge Rya Zobel in Boston involves claims by several homeowners who sought loan modifications from Bank of America under the federal Home Affordable Modification Program (HAMP), an initiative introduced by the Obama administration in 2009 to help distressed homeowners keep their homes.
Lawyers for the plaintiffs allege that Bank of America deliberately lied, stonewalled, and mislaid documents in order to prevent homeowners who were successfully completing trial modifications from qualifying for permanent mods, enabling the bank to foreclose instead.
If the plaintiff’s lawyers are successful at turning the case into a class-action suit, a pool of approximately 300,000 homeowners who attempted to get HAMP mods from Bank of America might be covered by the suit, plaintiff’s experts allege, greatly increasing the bank’s liability.
But lawyers representing Bank of America struck back hard against such a possibility, saying that despite months of looking through documents the plaintiffs haven’t presented any proof that the problems with HAMP mods were part of a policy put in place by Bank of America.
The plaintiff’s "allegations about how a few employees claim to have treated loans that they handled-even if credited-cannot be extrapolated to establish a common practice across the entire class," the bank’s attorneys wrote in a filing to the court.





