US armed forces members will receive the first round of payments under federal law protecting service members from foreclosures totaling $123 millions, in conjunction with the $25 billion nationwide mortgage settlement reached in February 2012.
The DOJ has stated that 666 armed forces members will receive $88 million from Chase, Wells Fargo, Citigroup, and Ally Financial. Another 286 already received $35.4 million under a 2011 settlement with Bank of America.
Lenders had been accused of violating the Servicemembers Civil Relief Act (“SCRA”), which prohibits foreclosures against members of the armed forces who are on or recently returned from active duty and took out their mortgages before deployment.
The foreclosures at issue took place between Jan. 1, 2006 and April 4, 2012, the DOJ said.