Bank of America’s residential servicing department Friday entered into a settlement with the Department of Justice to reimburse members of the military whose homes were foreclosed on while they were on active duty.
BAC Home Loan Servicing LP agreed to pay 157 service men and women a minimum of $116,785 each plus compensation for lost equity to settle alleged violations of the Servicemember Civil Relief Act.
BAC was formerly a Countrywide servicing shop that B of A acquired in 2008.
DOJ assistant attorney general Thomas Perez said the Justice Department will vigorously enforce the Servicemember Civil Relief Act.
“The men and women serving our country should not have to worry about a bank foreclosing on their home while they bravely serve our country,” Perez said.
SCRA provides certain protections for military personnel, reservists and Guardsman. When called up for activity duty, foreclosure and eviction proceedings are halted.
Earlier this year, the Consumer Financial Protection Bureau sent letters to the 25 largest banks, urging executives to provide their servicing employees with more training about the SCRA.
“I hope banks will use this [DOJ] announcement as an incentive to redouble their efforts.” said CFPB assistant director Holly Petraeus. (Petraeus, the wife of former Army general David Petraeus, is in charge of CFPB’s Office of Servicemember Affairs.)
Daily Briefing | Friday, November 11, 2011
Fortress Winning Bidder on $50B of BoA MSRs?
Fortress Investment Group appears to be the winning bidder on a $50 billon package of mortgage servicing rights being peddled by Bank of America, according to industry analysts watching the deal.
REIT Industry Fears Mortgage Damage from SEC Rule
The Securities and Exchange Commission could hurt the housing recovery if it imposes tighter restrictions on real estate investment trusts that purchase and securitize mortgages, according to industry comments filed with the agency.
Servicers Struggle to Create Foreclosure Remediation Plan
Regulators have identified how borrowers may have been harmed by a multitude of foreclosure errors, but they are largely leaving it to the servicers and their consultants to figure out how to fix it.
GOP Wants to ‘Nationalize’ MERS
A new Senate bill proposing to wind down the GSEs by at least 10% a year also includes a provision that would replace the private MERS System with an identical platform run by the Federal Housing Finance Agency — along with new national standards for mortgage title transfers.
D.R. Horton Profits Despite Mortgage/Housing Challenges
Despite continuing housing market and mortgage-related challenges, builder D.R. Horton Inc. generated profits in its fourth fiscal quarter and full fiscal year ending Sept. 30 that improved upon the same quarter last year but were lower than FY 2010.
Ellie Mae Promotes Corr to COO
Mortgage technology vendor Ellie Mae on Friday announced that it has promoted Jonathan Corr to chief operating officer.
Morgan Stanley Agrees to New Mortgage Servicing Standards in N.Y.
The New York banking department has reached an agreement with Morgan Stanley to implement new mortgage servicing standards after signing a similar deal with Goldman Sachs in September.
GAO: Agencies Should Find Better Ways to Coordinate Dodd-Frank
The numerous agencies involved in financial regulation should find better ways to coordinate with each other as they seek to implement the massive Dodd-Frank Act, according to a government watchdog report released Thursday.