Compensation for Servicemembers Over Illegal Foreclosures Increased to $311 Million


Have you heard the names JPMorgan, Wells Fargo, Citi, GMAC Mortgage and Bank of America linked to fraud and criminal activity related to the mortgage industry? This article points out just one more example of the outrageous acts these 5 “Too Big To Fail” corporations carried out on a daily basis. To date no one from these 5 enterprises has done any jail time or even been charged with a crime.

For a more detailed look at this subject – please read the article below.

The FHA Condos Approval Company, Inc.

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Another $186 million in compensation will be awarded to 1,461 service members and their co-borrowers over the unlawful foreclosure of their homes as part of the Department of Justice’s settlement with five of the nation’s largest mortgage servicers, according to an announcement from the DOJ.

These totals bring the amount of foreclosure-related compensation given to servicemembers by the five servicers (JPMorgan Chase, Wells Fargo, Citi, GMAC Mortgage, and Bank of America) to more than $311 million. A total of 2,413 sevicemembers and their co-borrowers are eligible to receive the compensation under protections afforded them by the Servicemembers Civil Relief Act (SCRA), according to the DOJ.

“While this compensation will provide some financial relief to more than 2,400 service members and their families, the fact is no one serving our country in the Armed Forces should ever have to worry about losing their home to an illegal foreclosure,” said Acting Associate Attorney General Stuart F. Delery.  “Through the Servicemembers and Veterans Initiative, the Department of Justice will continue to use every tool at our disposal to protect service members and their families from such unjust actions.”

The servicemembers are receiving the compensation as a result of the SCRA portion of the 2012 National Mortgage Settlement and a previous settlement with Bank of America. The foreclosures in question took place over a six-year period from January 1, 2006, to April 4, 2012. The servicers are alleged to have obtained foreclosure proceedings or default foreclosure judgments without notifying the court that the servicemember was on active duty in the military. Section 533 of the SCRA prohibits non-judicial foreclosures on servicemembers who are either in military service or within the applicable post-service period, provided the mortgages were originated prior to the beginning of their military service.

Under the terms of the NMS, each identified servicemember with a mortgage serviced by one of the five servicers named will receive $125,000, plus any lost equity in the property and any interest on the lost equity, according to the DOJ.

To read the complete article – please use the link below.

Compensation for Servicemembers

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