Husband

BACKGROUND

The following facts are alleged in the first amended complaint. Borrowers obtained a home mortgage from HFC in 2006. At all relevant times the loan was serviced by HSBC. Borrowers hired Andrew T. Cook and Company (Cook), a company that helps homeowners obtain loan modifications, in August 2009. In April 2010, despite Cook’s efforts, HSBC recorded a notice of default on the mortgage. In May 2010, however, HSBC rescinded the notice of default and verbally informed Joel Atwater, an employee for Cook, that Borrowers “were to receive a permanent modification” with payments of $1,756 per month and that permanent modification documents would be drawn after Borrowers made timely payments during a six-month trial period. After making six timely payments of $1,756, Borrowers inquired about documentation of the promised permanent loan modification. HSBC replied that it allowed only six-month temporary loan modifications, never permanent modifications, and the loan payment would be reverting back to its higher original amount. HFC knew about and encouraged HSBC’s actions. In reliance on the promise of permanent modification, Borrowers paid for and sent cashier’s checks, gave…