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IndyMac Mortgage Services
ABBEY SPANIER RODD & ABRAMS, LLP FILES CLASS ACTION LAWSUIT AGAINST INDYMAC MORTGAGE SERVICES, FSB, A DIVISION OF ONEWEST BANK, FSB Abbey Spanier Rodd & Abrams, LLP, with co-counsel, commenced a class action lawsuit in the United States District Court for the Northern District of Illinois (Case No. 1:10-cv-04682) on behalf of a nationwide class of eligible homeowners whose mortgage loans have been serviced by IndyMac Mortgage Services, FSB ("IndyMac"), and who, since August 18, 2009, have complied with their obligations for a loan modification under a written Trial Period Plan Agreement, but have not received a permanent loan modification under the United States Treasury's Home Affordable Modification Program ("HAMP"). The HAMP was created by the federal government (and funded primarily by Troubled Asset Relief Program funds) in August 2009 to combat the national foreclosure crisis. The program was specifically designed to allow eligible homeowners who are at imminent risk of defaulting on their mortgages to save their homes by modifying the terms of their mortgage loans. Though IndyMac, as a division of OneWest Bank, FSB, is a participating servicer in this program, it has made it extremely difficult, if not impossible, for eligible homeowners to obtain loan modifications under this program. The HAMP requires borrowers to enter into a Trial Period Plan before receiving a permanent modification. During this period, borrowers must submit trial payments and all required forms and documents. The Complaint alleges that IndyMac systematically fails to honor Trial Period Plan Agreements entered into with homeowners notwithstanding the fact that homeowners live up to their end of the bargain by submitting the necessary paperwork and making trial payments on time. In addition, IndyMac unjustifiably denies or avoids permanent modification by losing paperwork, claiming ignorance of payments made and papers submitted and engaging in other evasive conduct. As a result, thousands of homeowners have and continue to incur hefty fees and interest on their loans and are wrongfully deprived of an opportunity to cure their delinquencies, pay their mortgage loans and save their homes from foreclosure under a federally-funded program. The Complaint alleges common law claims for breach of contract and promissory estoppel and claims under the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1, et seq., Plaintiff seeks money damages on her own behalf and on behalf of all other similarly situated homeowners, as well as injunctive relief to ensure that IndyMac fulfills its obligation to modify the loans of all eligible class members. |