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Banking industry

Justice Department Announces Additional Compensation for Service Members

Strategic Insights

— 2 min read

The United States Department of Justice has announced that an additional 1,461 service members and their co-borrowers will receive over $186 million in compensation for home foreclosures under the National Mortgage Settlement (NMS) and an earlier settlement with Bank of America. This brings the total number of eligible service members to 2,413, with over $311 million in compensation. The settlements implement the protections of the Servicemembers Civil Relief Act (SCRA), which prohibits non-judicial foreclosures against service members in military service or within the applicable post-service period.

Key Takeaways:

  • 1,461 service members and their co-borrowers are eligible to receive over $186 million in compensation for home foreclosures under the NMS and an earlier settlement with Bank of America.
  • The total number of eligible service members is 2,413, with over $311 million in compensation.
  • The settlements implement the protections of the Servicemembers Civil Relief Act (SCRA), which prohibits non-judicial foreclosures against service members in military service or within the applicable post-service period.
  • The five mortgage servicers involved in the settlements are JP Morgan Chase Bank N.A., Wells Fargo Bank N.A. and Wells Fargo and Co., Citi Residential Lending Inc., Citibank, NA and CitiMortgage Inc., GMAC Mortgage LLC, Ally Financial Inc. and Residential Capital LLC, and Bank of America N.A., Countrywide Home Loans Inc., Countrywide Financial Corp., Countrywide Home Loans Servicing L.P. and BAC Home Loans Servicing L.P.
  • Acting Associate Attorney General Stuart F. Delery stated that "no one serving our country in the Armed Forces should ever have to worry about losing their home to an illegal foreclosure."
  • Principal Deputy Assistant Attorney General Vanita Gupta stated that the Justice Department will continue to use every tool at its disposal to protect service members and their families from unjust actions.

Statistics:

  • 1,461 service members and their co-borrowers are eligible to receive over $186 million in compensation.
  • The total number of eligible service members is 2,413, with over $311 million in compensation.
  • 286 service members will be compensated by Bank of America for non-judicial foreclosures, with $63,686,567 in compensation.
  • 127 service members will be compensated by Bank of America for judicial foreclosures, with $24,146,544 in compensation.
  • 113 service members will be compensated by GMAC Mortgage for non-judicial foreclosures, with $13,720,588 in compensation.
  • 89 service members will be compensated by GMAC Mortgage for judicial foreclosures, with $11,516,002 in compensation.
  • 188 service members will be compensated by JP Morgan Chase for non-judicial foreclosures, with $32,488,293 in compensation.
  • 204 service members will be compensated by JP Morgan Chase for judicial foreclosures, with $27,424,558 in compensation.
  • 239 service members will be compensated by Wells Fargo for non-judicial foreclosures, with $28,290,790 in compensation.
  • 481 service members will be compensated by Wells Fargo for judicial foreclosures, with $59,484,334 in compensation.

Sources:

  • "Justice Department Announces Additional Compensation for Service Members" (Department of Justice press release, 15-1210)
  • Servicemembers Civil Relief Act (SCRA)
  • National Mortgage Settlement (NMS)

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