USDOJ Settles with Bank of America for Illegally Foreclosing on ServicemembersSubmitted by bobbyw24 on Thu, 05/26/2011 - 15:16
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, May 26, 2011
Justice Department Settles with Bank of America and Saxon Mortgage for Illegally Foreclosing on Servicemembers
Settlement Includes a Minimum of $22 Million in Relief for Victims
WASHINGTON - The Justice Department today announced settlements with two lenders under the Servicemembers Civil Relief Act (SCRA) to resolve allegations that the lenders wrongfully foreclosed upon active duty servicemembers without first obtaining court orders, in violation of the SCRA. Combined, the settlements provide more than $22 million in monetary relief for the victims.
Under the first settlement , BAC Home Loans Servicing LP, formerly known as Countrywide Home Loans Servicing LP, a subsidiary of Bank of America Corporation, will pay $20 million to resolve a lawsuit alleging that Countrywide foreclosed on approximately 160 servicemembers between January 2006 and May 2009 without court orders. In addition to the $20 million, Countrywide agreed to pay any servicemember wrongfully foreclosed in the period from June 2009 through 2010. The complaint alleges that Countrywide did not consistently check the military status of borrowers on whom it foreclosed through at least May 31, 2009. The complaint was filed in the Central District of California, where Countrywide is headquartered.