February 9, 2012 - Agreement Reached as Part of the $25 Billion Federal-State Mortgage Servicing AgreementThe settlement agreement with the nation’s five largest servicers announced today by Attorney General Eric Holder and the Department of Justice’s federal and state partners includes substantial financial compensation to homeowners who are servicemembers and establishes significant new protections for servicemembers in the future. The financial compensation to servicemembers is in addition to the $25 billion settlement.
JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. (formerly GMAC) have agreed to conduct a full review, overseen by the Department of Justice’s Civil Rights Division, to determine whether any servicemembers were foreclosed on in violation of the Servicemembers Civil Relief Act (SCRA) since Jan.1, 2006. Wells Fargo, Citigroup and Ally will be required to provide any servicemember who was a victim of a wrongful foreclosure a minimum payment of $116,785 plus the servicemember’s lost equity and interest for violating the SCRA. The servicemember’s payment could be higher as a result of the review conducted by the banking regulators. To ensure consistency with an earlier private settlement, JP Morgan Chase will provide any servicemember who was a victim of a wrongful foreclosure either his or her home free and clear of any debt or the cash equivalent of the full value of the home at the time of sale. In addition, servicemebers will receive compensation for any additional harm suffered. All compensation for servicemembers wrongfully foreclosed on is in addition to the $25 billion settlement amount. read more>>>
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