Thursday, December 01, 2011

Treasury Dept. investigating whether banks illegally foreclosed on active-duty troops

The U.S. Treasury Department is investigating whether Bank of America, Wells Fargo and eight other major banks may have illegally foreclosed on about 4,500 active-duty servicemen and women.

Charlotte-based Bank of America disputes the charges, but has agreed to work with an independent contractor and review more than 2,400 foreclosures on homeowners who indicated they were eligible for relief under the Servicemembers Civil Relief Act.

According to the Treasury's Office of the Comptroller of the Currency, Wells Fargo has also agreed to review 871 foreclosures of homeowners who indicated they were eligible under the act, which postpones or suspends certain civil obligations to allow active-duty service members to devote their attention to their military duty.

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