WASHINGTON – February 16, 2012 - The Department of Veterans Affairs announced its participation in the largest state-federal legal settlement in history that deals with problems within the mortgage industry.“Through this historic settlement, VA has ensured that Veterans, Servicemembers, and National Guard and Reserve members will continue to receive every possible opportunity to retain their homes,” said Secretary of Veterans Affairs Eric K. Shinseki.
VA joined with the Department of Justice, a coalition of state attorneys general and other federal agencies in the settlement.
The nation’s five largest mortgage servicers have agreed to this landmark $25 billion settlement that addresses past mortgage loan servicing and foreclosure abuses, provides substantial financial relief to borrowers, and establishes significant new homeowner protections in the future.
In addition to cash payments to avoid litigation, the banks also agree to undertake other activities, such as principal forgiveness, interest-rate-reduction refinancing, and forbearance during unemployment.
The settlement also enhances protections available under the Servicemembers Civil Relief Act and provides additional assistance when Servicemembers are forced to sell their home at a loss due to reassignment to another location. read more>>>
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