DoJ Settles with Bank of America and Saxon Mortgage for Illegally Foreclosing on Servicemembers

[Hissyspit]

Source: Department of Justice

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.
 
Under the second settlement, Saxon Mortgage Services Inc., a subsidiary of Morgan Stanley, will pay $2.35 million to resolve a lawsuit alleging that Saxon foreclosed on approximately 17 servicemembers between January 2006 and June 2009 without court orders. In addition to the $2.35 million, Saxon agreed to pay any servicemember wrongfully foreclosed in the period from July 2009 through 2010. The complaint alleges that Saxon failed to consistently or accurately check the military status of borrowers on whom it foreclosed through at least June 30, 2009. The complaint was filed in the Northern District of Texas, where Saxon is headquartered.
 
- snip -

Of the approximately 160 servicemembers upon whom Countrywide foreclosed without obtaining court orders, Countrywide allegedly foreclosed in many instances where it knew, or should have known, about their military status. The victims include individuals who have served honorably in Iraq and Afghanistan. The Department of Justice initiated its SCRA investigation of Countrywide in response to a referral by the U.S. Marine Corps regarding an active duty servicemember who was facing foreclosure by Countrywide. 

Read more: http://www.justice.gov/opa/pr/2011/May/11-crt-683.html

[RUMMYisFROSTED]

1. $22M= 22 cents

That's all you need to know.


Scalability.

[shraby]

2. Pay the fine! AND WHERE IS THE JAIL TIME FOR FRAUD?

[rocktivity]

6. The law is crystal clear: you CANNOT foreclose on a house owned by someone on active duty

Damn right criminal charges are in order!

:headbang:
rocktivity

[24601]

8. For criminal charges, you have to have a criminal statute that

actually spells out the maximim penalty for an action. I'll wager that this is all on the civil side. On the other side of the coin, (former) Senator Dodd accepted a sweetheart deal from Countrywide, so all is forgiven.

[fredamae]

3. Shut them down and throw their arses in Jail!

Thats pocket change for these thieves!

[Fuddnik]

4. So, they almost got off with a sternly worded letter.

But, instead got threatened with a slap on the wrist.

[Missy Vixen]

5. By the time the lawyers get paid, that will be $11 million at best

Spread among 160 servicemembers? Sixty-eight thousand dollars. Big deal. I would rather see a settlement in which each servicemember affected received the financial wherewithal to pay for a new home of their choice, free and clear.

Of course there are no criminal charges against those who perpetrated this, either.

:mad:

[Jumping John]

7. The last sentence on the page is not true. It says:

"Service members who believe they may have been victims, can contact the banks directly at 1-800-896-7743, mailbox 6 for Countrywide or 1-800-896-7743, mailbox 995 for Saxon."

But in reality that number connects the caller to a recording at the DOJ.

While some may say that it is a direct line to the banks via voice mail, I would say no it isn't.

[TheMadMonk]

9. Is and isn't probably. Lines are those owned and paid for by banks, but...

...as a part of this action, redirected to DOJ with a CC back to the appropriate bank.

Short of puting evidence management in the hands of a trusted third party escrow service, it's the logical way to handle the situation, else the lenders would have the ability to manipulate what would be evidence in any continuance of the proceedings.

[dixiegrrrrl]

10. FWIW..BOA seems to have done away with BAC Home Loans Servicing LP.

We have, sadly, mortgage with BOA, formerly Countrywide, have been notified that as of July 1, all payments must be made out to BOA, N.A. no longer to BAC Home Loans Servicing.
I was wondering what caused the change.
And, I also noticed, foreclosures listed in our paper no longer mention MERS, instead mention BOA N.A.

Sounds like all that criminal fraud has quietly been swept under the rug.