Committee Presses Bank of America, Ally Financial for Clear Answers about Foreclosure Violations of Servicemember Civil Relief Act
|*** Update – September 15 ***The Oversight Committee today received information requested from Ally Financial. The updated chart below reflects this information:
**Below is the original text of the September 14th, 2011 press release
September 14, 2011
WASHINGTON, D.C. – House Oversight and Government Reform Committee Chairman Darrell Issa today pressed two mortgage servicers for answers about the industry’s recent violations of the Servicemembers Civil Relief Act (SCRA). In letters to Bank of America Home Loans and Ally Financial, Inc., Issa voiced concern that both companies have not quantified how many improper foreclosures and improper fees, if any, they have assessed on their active duty U.S. military customers in the last few years. Chairman Issa was joined by Ranking Member Elijah Cummings (D-MD) on the letter to Bank of America.
“We were encouraged by the reply and by BofA’s willingness to cooperate with the Committee regarding its investigation into recent violations of the Servicemembers Civil Relief Act (SCRA),” wrote Issa and Cummings to Bank of America Home Loans requesting answers and documents. “Unfortunately, however, BofA chose not to provide direct responses to all of the questions outlined in the original letter [of July 25]. This lack of cooperation stands in stark contrast to that of other servicers, all of which have provided, or are in the process of providing full and complete responses.”
The following is an overview of the number of SCRA foreclosure violations and assessments of improper fees reported to the Committee by top mortgage servicers so far:
Chairman Issa also today, in a letter to Under Secretary of Defense for Personnel and Readiness Clifford L. Stanley, requested that the Department review responses submitted by mortgage servicers about SCRA violations to, “see if any information contained in them is inconsistent with your extensive experience working with these financial institutions and with active duty military personnel.”
The committee continues to conduct its investigation focused on foreclosures that violate the Servicemember Civil Relief Act.