Amanda Martin


The foreclosure crisis has lingered despite the improving economy. To alleviate this crisis, the U.S. government implemented the Home Affordable Mortgage Program (HAMP), a Treasury-sponsored initiative that aims to prevent foreclosure by encouraging mortgage loan servicers to modify the mortgages of qualified homeowners. The Treasury Department has extended HAMP multiple times—from its original ending date in 2013 to its present ending date in 2016. While HAMP has indeed helped homeowners avoid foreclosure, the program has spawned an array of litigation as servicer misconduct runs rampant. As the Ninth Circuit recently noted, “the [HAMP] program seems to have created more litigation than it has happy homeowners.” Litigation has had varying success for homeowners. Courts were initially reluctant to enforce Treasury directives regarding HAMP. However, evolving case law has provided a shift in strategy for home-owners to litigate under common law devices and state statutory law, such as consumer protection acts. This Comment provides a brief overview of HAMP, a history of HAMP litigation, and an analysis of how homeowners can successfully litigate HAMP claims using consumer protection acts.