Money

Bank of America, Morgan Stanley Ordered to Pay $39 Million to Military Members for Improper Foreclosures

| by Michael Allen
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The Justice Department recently announced that Bank of America and Morgan Stanley will pay $39 million to members of the military who were improperly foreclosed upon on between 2006 and 2010.

The banks were already paying 142 military members under a 2011 agreement with the federal government, but a new review by the Justice Department said that 155 additional military homeowners were improperly foreclosed on, reports Reuters.

The service members will receive at least $116,785, each, plus money with interest, for any home equity lost.

“Our men and women in the military should not have to worry about a bank foreclosing on their home while they bravely serve our country,” said Eric Halperin, Special Counsel for Fair Lending in the Civil Rights Division.

The Servicemembers Civil Relief Act allows members of the military to postpone or suspend credit card debt and mortgage payments.

Bank of America was one of the five banks that reached a settlement with the federal government over foreclosure abuses.

Sources: Justice.gov and Reuters

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