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Many Americans have applied for the federal government’s loan modification program, meant to keep them in their homes. Instead, less than a quarter of those who signed up have gotten any help. The banks are being sued by several states and consumer class action lawsuits for their failure to follow through. If you research this more, you find that Bank of America has an incredible number of violations and suits pending against the company. One of these is from the Utah man in this video, Michael Waters, who has decided to represent himself after no attorney would take on the case because “the bank’s pockets are too deep.”


1. What is HAMP? Find an article that talks about Bank of America and its involvement with HAMP.

2. Briefly describe Michael Waters suit against Bank of America. What technicality has he been able to use, to keep this case alive? What is meant by “deep pockets”?

3. Explain the journal entries that a bank would make in the modification of a loan.


You Michael Waters Versus Bank of America, March 7, 2011.