Within the past few months, borrowers across the country have asserted claims against lenders based on the lenders' alleged failure to honor loan modifications pursuant to the federal Home Affordable Modification Program (HAMP). Recently a federal district court in New Jersey issued a decision that may provide a sound basis for opposing such claims.

In Papoutsakis v. Bank of America, Judge Susan D. Wigenton held that a failure to honor a modification cannot, without more, form the basis for a consumer fraud claim against the lender.

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