The state Banking Department is investigating whether Countrywide Home Loans engaged in unfair or deceptive trade practices in its dealings with a New Hampshire couple.

Gary and Jessica Raymond filed a formal complaint with the banking department earlier this year.

The Raymonds previously had sued Countrywide for acting in bad faith after they sought a home loan modification with the mortgage servicer. They documented how, after months of delays and dozens of unsuccessful attempts to contact Countrywide, the company finally rejected their application.

The Raymonds, who have two young children, filed for bankruptcy protection and moved out of their Canterbury home a year ago. The bank has never foreclosed on the house, which remains empty.

Last month, a Merrimack County Superior Court judge granted Countrywide's motion to dismiss the Raymonds' civil lawsuit.

Now the Raymonds, who have moved to Sanbornton, will take their case before Banking Commissioner Peter Hildreth.

A hearing on their complaint is set for July 6. However, the Raymonds' attorney, Mary Stewart of Concord, is asking Hildreth to postpone that hearing -- for now. As of Friday, Hildreth had not ruled on that request, but he told the New Hampshire Sunday News such requests typically are granted if both parties agree.

Stewart said she asked for the delay after lawyers for Bank of America, which bought Countrywide last year, asked to enter into mediation with the Raymonds to try to resolve the dispute.

Meanwhile, the company's lawyers have asked Hildreth to dismiss the Raymonds' complaint, noting it raises the same issues as the civil lawsuit that was dismissed. They also contend in a May 22 letter to Hildreth that ruling in favor of the Raymonds "would have a terrible chilling effect on lenders and servicers communicating the possibility of workout solutions."

In her decision to dismiss the Raymonds' case against Countrywide, Judge Carol Ann Conboy was not without sympathy for their plight.

"The Court recognizes the Raymonds' unfortunate situation and their extraordinary efforts to seek help from Countrywide to save their home. Moreover, it is apparent that Countrywide's level of service, if not its management, is more than deserving of criticism," Conboy wrote in her decision. "However, the Court is constrained to apply the established law of this state."

New Hampshire's consumer protection law, RSA 358-A, specifically exempts institutions regulated by the banking commissioner. Instead, it's up to the commissioner to "investigate conduct that is or may be an unfair or deceptive act or practice," under RSA 383:10-d.

The Raymonds filed their complaint with the banking department under that law.

Hildreth, a former lawyer with experience in real-estate law, said he decided to hear the Raymonds' case himself instead of appointing a hearing officer, because of the complexities involved. He noted consumer-protection laws are "meant to be a grayer area" than what's involved in a civil action.

"And, in fact, it is possible for an action that someone takes in the Consumer Protection Act area that is not against the law (nevertheless) is an unfair trade practice," he said.

Hildreth said he believes it would be best if the Raymonds are able to resolve their case through mediation. "But if they're not, we'll go forward."

Jessica Raymond said the mediation offer from Countrywide/Bank of America came just days after Judge Conboy dismissed their case. She said she and her husband are willing to "give it a shot," but they don't want to get their hopes up again.

"We don't want to set ourselves up for failure," her husband said. "We lost the house once, and it was devastating. When the judge dismissed (the case) . . . we felt like we lost the house again."

What they really want, Jessica Raymond said, is to help other consumers.

"There's a lot of mortgage companies giving people the run-around, giving them false hopes, making them believe they're going to help them and then they don't," she said.

"We're hoping the banking commissioner sees what they're doing and can do something about it."

If Hildreth were to rule in favor of the Raymonds, he could suspend or revoke Countrywide's license. But that may be a moot point.

Because Bank of America is a national bank, it is not licensed by the state. However, Hildreth said, since Countrywide was licensed here as a mortgage banker and broker at the time of the alleged infractions, "We at least maintain that we retain jurisdiction and can impose penalties on them."

Stewart, the Raymonds' attorney, said they have never contended that Countrywide had an obligation to modify the couple's mortgage loan.

However, she said, "We're saying that once you accept the application for the loan modification, then you have an obligation to execute that process in good faith -- and that an eight-month run-around is not good faith."

Bank of America did not respond to a request to discuss the Raymond case last week.