Earlier this month, President Obama announced a number of provisions to provide relief for veterans. On top of the historic settlement completed by the Federal government and 49 state Attorneys General last month, major servicers will be providing significant relief to thousands of servicemembers and veterans.
The legislative changes seek to make it easier for veterans to refinance via lower FHA fees, include additional funding for the VA Fund, and provide a range of remedies for vets who were either subject to mortgage abuse, foreclosure misconduct or unfair interest rates.
Under the agreement, they will:
- conduct a review 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 to 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.
To read the fact sheet, visit http://www.whitehouse.gov
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