4 NYC homeowners sue over mortgage program

NEW YORK — Four New York City homeowners have filed a lawsuit charging they were denied access to a federal home-refinancing program.

The plaintiffs are homeowners in Brooklyn and Queens who have mortgages serviced by Aurora Loan Services.

They are charging that Aurora denied them access to the Obama administration's Home Affordable Modification Program without valid reasons.

That program is designed to help borrowers refinance their home loans to avoid foreclosure.

The lawsuit also charges that U.S. Treasury officials failed to ensure that homeowners are afforded their full due process rights.

It was filed Monday in federal district court in Washington, D.C.

The homeowners are represented by the Legal Aid Society of New York City.

A spokeswoman for Aurora Loan Services had no immediate comment on the lawsuit.

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Nov 09, 2009 - 5:32 p.m. EDT

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