MILITARY FAMILIES REPAID FOR INCORRECT INTEREST RATES TOO
The five largest mortgage companies have agreed to an additional settlement for military families in addition to the $25 billion settlement to compensate families who were wrongly foreclosed upon.
Wells Fargo, Citigroup, and Ally will be required to give military families a minimum of $116,785 plus lost equity and interest for violating terms of the Servicemembers Civil Relief Act.
The law prohibits companies from foreclosing on servicemembers without court orders on mortgages that were made before military service begins. The new settlement gives the same protection to all military members, regardless of when they began their mortgage. To qualify, the military member must have been receiving hostile fire/imminent danger pay and have been stationed away from their home within nine months of the foreclosure.
JP Morgan chase has agreed to give the families they wrongful foreclosed on either their home, with no debt owed, or the cash equivalent of the value of the home at the time of sale.
Servicemembers will also receive a settlement for any additional harm suffered.
Military families who did not lose their home, but were denied a lower interest rate after they requested one under the SCRA, will also receive compensation.
The Department of Justice's Civil Rights Division will conduct a review with the mortgage companies to pinpoint military families who have paid in excess of 6 percent interest on their mortgage since January, 2008.
Mortgage servicers will be required to give those families a refund, with interest for any amount paid over 6 percent, plus triple the amount refunded or $500, whichever is larger.
If you think your SCRA rights have been violated, please visit the military legal assistance office locator to find help near you.