05.27.11

Comment On Justice Department Settlement With Mortgage Companies On Military Foreclosures

“The settlement announced Thursday by the U.S. Department of Justice with mortgage servicing subsidiaries of Bank of America and Morgan Stanley is good news for the men and women in our military whose protections under the Servicemembers Civil Relief Act have been violated.  The last thing struggling Americans need right now is to be victimized by their home lenders.  This is especially true of men and women risking their lives in the service of their country.  I welcome the pledge by these firms that they are committed to doing better by our servicemembers.”

[BACKGROUND: On May 24, Senator Leahy introduced the Fighting Fraud in Bankruptcy Act, which will strengthen the tools available to U.S. bankruptcy trustees to protect American homeowners from creditor fraud in bankruptcy court.  Among other provisions, the bill will require mortgage lenders seeking permission from the bankruptcy court to proceed with a foreclosure to certify under penalty of perjury that their actions are in compliance with the Servicemembers Civil Relief Act (SCRA).  The SCRA protects military personnel on active duty by requiring a stable, manageable interest rate and prohibiting foreclosures during deployment.]

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