October 5, 2016
The United States Court of Appeals for the 10th Circuit (which is the Federal appeals court for Federal cases filed in Colorado, Kansas, New Mexico, Oklahoma, Utah, and Wyoming) has issued a 38-page opinion which reversed the trial court’s dismissal of RICO and other claims filed by homeowners against Bank of America and a company which it hired in connection with fraudulent administration of HAMP loan mod applications. The case is George et al. v. Urban Settlement Services and Bank of America, No. 14-1427 (10th Cir., Aug. 15, 2016).
The homeowners alleged that the Defendants fraudulently represented that if the homeowners made all of their TPP payments during the trial period that BOA would sign off on their loan modifications and the modifications would become permanent. Although the homeowners complied with all of the terms of the TPP and BOA sent permanent loan mod applications which were completed by the homeowners, BOA failed to modify the loans.
The 10th Circuit cited decisions from the 1st, 7th, and 9th Circuits which held that the promises made in TPP documents were enforceable, and found that the homeowners had alleged sufficient facts to support claims under RICO against BOA and the company it hired, and for promissory estoppel against BOA.
Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com