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Unfortunately, under HAMP, contrary to the assertions of the politicians, there is no part of the Act that provides a mandate on the banks to force them to grant the modifications and there is no penalty against the banks for failure to provide a modification. Your legal recourse is exactly what you have done, the escalation unit appeal and the claim to the Financial Protection Bureau. As far as suing the bank for not approving the loan, I am afraid there is no legal basis provided for that in the law. If you can prove you are being denied based on your age/race/sex/disability (unlawful discrimination) then you could sue the bank for that unlawful discrimination, but simply because they do not want to lend the money, I am afraid that when HAMP was enacted they did not make any provisions for such suits.
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