United States District Court, D. Massachusetts
For Mary Ellen Hanrahran, Plaintiff: Gregory V. Sullivan, LEAD ATTORNEYS, Malloy and Sullivan LPC, Hingham, MA.
For Specialized Loan Servicing, LLC, Defendant: Kevin P. Polansky, LEAD ATTORNEY, David E. Fialkow, Nelson Mullins Riley & Scarborough LLP, One Post Office Square, Boston, MA.
MEMORANDUM AND ORDER
Patti B. Saris, Chief
United States District Judge
Plaintiff Mary Ellen Hanrahran alleges that Defendant Specialized Loan Servicing, LLC (" SLS" ) violated her rights under Mass. Gen. Laws c. 93A by engaging in a pattern of delay and evasion in response to her attempts to obtain a loan modification under the Home Affordable Modification Program (" HAMP" ). After hearing, this Court previously allowed SLS's motion to dismiss Hanrahran's complaint (Docket No. 19). Hanrahran filed an amended complaint (Docket No. 20) and SLS now moves to dismiss again. SLS's Motion to Dismiss the Amended Complaint (Docket No. 23) is DENIED.
I. FACTUAL BACKGROUND
The alleged facts are taken as true for purposes of this motion to dismiss. Ashcroft v. Iqbal, 556 U.S. 662, 667, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).
In November 2006, Hanrahran obtained a loan for $100,800 from Countrywide Home Loans, Inc. (" Countrywide" ), which was secured by a mortgage on her home in Brockton, Massachusetts. Am. Compl. ¶ 3. Specialized Loan Servicing, LLC, (" SLS" ) became the servicer of Hanrahran's loan in January 2012 and sent her a Notice of Intention to Foreclose in March 2012. Id. at ¶ ¶ 4,6.
A. Hanrahran's October 2012 Request for Mortgage Assistance under the Home Affordable Modification Program (" HAMP" )
Several months after receiving SLS's notice of foreclosure, Hanrahran received a letter from SLS informing her that she
qualified to apply for the Home Affordable Modification Program (" HAMP" ), a national initiative aimed at modifying loans to reduce a homeowner's monthly payments and avoid foreclosure. Id. at ¶ 7. Hanrahran is a HAMP-eligible homeowner because her home in Brockton is her principal residence, her mortgage originated prior to January 1, 2009, and she owes less than $729,000 on her mortgage. Id. at ¶ ¶ 10-11. Additionally, SLS is a HAMP-participating servicer, mandated to comply with the program's requirements in evaluating requests for mortgage assistance submitted by homeowners. Id. at ¶ 13.
Seizing this opportunity to avoid foreclosure, Hanrahran submitted the necessary documents to SLS to commence the HAMP process in September 2012 and filed her official HAMP Request for Mortgage Assistance in October 2012. Id. at ¶ ¶ 19-20. Based on her gross monthly income and monthly mortgage payment at the time, Hanrahran was entitled under HAMP to a reduction in her mortgage payment from over $1100/month to approximately $775/month. Id. at ¶ 22. On November 5, 2012, SLS confirmed receipt of Hanrahran's HAMP request, informed her that she did not need to submit any additional documentation, and reassured her that the company was in the process of making a decision. Id. at ¶ 21.
Even though HAMP regulations require a loan servicer to evaluate a homeowner's application within 30 days, SLS did not contact her concerning the status of her application between November 2012 and April 2013. Id. at ¶ ¶ 21-24. Meanwhile, SLS continued to charge thousands of dollars in costs, fees, and interest, adding them to the balance of her mortgage. Id. at ¶ 23. By April 22, 2013-six months after she had submitted her HAMP request-Hanrahran still had not heard back about the status of her application. To ...