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Federal Daily News

Measures will aid military servicemembers hurt by mortgage abuses

President Obama announced a range of new measures aimed at helping military servicemembers and veterans who were hurt by mortgage abuses during the economic downturn.

According to a White House fact sheet, the new remedies come in addition to relief servicemembers will receive under a $25 billion settlement the federal government and state attorneys general completed with major loan servicers last month. Under the new measures outlined March 6, major loan servicers will be required to:

• Review records of every servicemember foreclosed upon since 2006 and provide any who were wrongly foreclosed upon with compensation equal to a minimum of lost equity, plus interest and $116,785;

• Refund servicemembers money lost because they were wrongfully denied the opportunity to reduce their mortgage payments through lower interest rates;

• Provide relief for servicemembers who are forced to sell their homes for less than the amount they owe on their mortgage due to a permanent change in station;

• Pay $10 million dollars into the Veterans Affairs fund that guarantees loans on favorable terms for veterans; and

• Extend certain foreclosure protections afforded under the Servicemember Civil Relief Act to servicemembers serving in harm’s way.

The White House also said the Federal Housing Administration will cut fees for refinancing loans that are already FHA-insured, a move that could lower costs for several million eligible borrowers.


 

Reader comments

Thu, Mar 8, 2012

Paying 10M into a fund for veteran's housing loans certainly doesn't mean veterans would get it, and why should veteran's who are not involved in a wrongful forclosure benefit from the finacial problems of others (or their banks). I call this vote buying!

Wed, Mar 7, 2012 N. Arizona

Why is this once again only focused on the military personnel and not all federal employees? Are we continuing to develop a two class system where federal employees continue to lose ground to the military employees? The President seems to only focus his attention on the military personnel.

Wed, Mar 7, 2012

Before long, the President will need to do the same for all Federal employees. After Congress is done the Federal workforce will be in the same situation, if not worse. I think it's time to start looking in the private sector for a new job, one that isn't the target of the US Congress. The Federal Employees didn't cause the huge deficit, but are being forced to pay for it. Hopefully, the bailout for veterans will include the whole federal workforce.

Wed, Mar 7, 2012 FELISA CAMP PENDLETON CA

It's great to have a President like Mr. Obama who cares for the disadvantaged individuals, who are being subjected to losing their homes from firms like Mortgage Lenders and other Scams that are rampant these days. Thank you Mr. President. We will remember you during Election. /FLB

Wed, Mar 7, 2012

We all need a bailout like this. I believe that to start with our service members is just that, a good start. What happened during the mortgage debacle is criminal and should be treated as such.

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