CoreLogic introduced a new verification system to immediately identify borrowers in the United States military.
Compliance and loan portfolio due diligence solution, Verification of Military Status, allows mortgage services to promptly and accurately verify those protected by the Servicemembers Civil Relief Act. Anyone on active duty and up to 90 days following discharge are protected from actions such as foreclosures and interest rate increases according to the SCRA.
Lenders in the past paid dearly when found in violation of SCRA. In April, JP Morgan (JPM: 40.91 +1.06%) agreed to pay $54 million for offering military members the special status in distressed mortgage servicing the SCRA allows. Bank of America (BAC: 10.83 +2.17%) and Saxon Mortgage are also paying similar settlements.
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