Ten leading US lenders may have unlawfully foreclosed on the mortgages of nearly 5,000 active-duty members of the US military in recent years, according to data released by a federal regulator.
JPMorgan Chase and Bank of America this year reached legal settlements in which they agreed to pay damages to nearly 200 service members who claimed that their homes had been improperly seized.
Data released last week by the Treasury’s Office of the Comptroller of the Currency, which regulates national banks, shows that 10 lenders – including BofA, but not JPMorgan, which was not part of the study – are reviewing nearly 5,000 foreclosures of homes belonging to service members and their families to see if they complied with the law.
Under the Servicemembers Civil Relief Act of 2003, mortgage servicers have to follow special procedures when foreclosing on homes belonging to active-duty members of the armed forces and their families. For instance, there are restrictions on so-called default judgments, in which homes are seized after the borrower fails to appear in court.
Check out the rest here…
(Subscription Required)
No comments:
Post a Comment