WASHINGTON -(Dow Jones)- Subsidiaries of Bank of America Corp. (BAC) and Morgan Stanley (MS) will pay more than $22 million to settle charges that they wrongfully foreclosed on active-duty military members without first obtaining court orders, the Justice Department announced Thursday.
In one settlement, BAC Home Loans Servicing, formerly known as Countrywide Home Loans Servicing, will pay $20 million to settle charges that it illegally foreclosed on roughly 160 service members from 2006 to May 2009. The department said Countrywide also agreed to pay any service member wrongfully foreclosed from June 2009 through 2010. Department lawyers alleged Countrywide didn’t consistently check the military status of borrowers whom it foreclosed through at least May 2009.
In another settlement, Morgan Stanley subsidiary Saxon Mortgage Services Inc. will pay $2.35 million to resolve allegations it wrongly foreclosed on 17 service members between 2006 and June 2009.
Abuse is common. As far back as 2004 HSBC Bank was accused of abusing active duty military personnel in the United States, even though the bank is a foreign bank.
Documents uncovered by Fair Finance Watch show that HSBC has attempted to narrow the terms of the SCRA to only those serving “in a hostile zone”, rather than, as stated by the act, “during any part of the period of military service”.
Come to America and try to change the rules for our military? Come on. Got back to China and Britain where you belong.