Banks Illegally Foreclosed on Dozens of Military Borrowers, Federal Investigators Say (GAO)

[Hissyspit]

Source: Huffington Post / GAO

Shahien Nasiripour

Banks Illegally Foreclosed On Dozens Of Military Borrowers, Federal Investigators Say

First Posted: 05/ 5/11 04:39 PM ET Updated: 05/ 5/11 10:47 PM ET

WASHINGTON -- Two of the nation's largest mortgage firms illegally foreclosed on the homes of "almost 50" active-duty military service members, according to a Thursday report by the Government Accountability Office.

The report does not identify the two mortgage companies. GAO investigators attributed the finding to federal bank regulators, who recently completed a three-month probe into allegations of improper foreclosures carried out by the nation's 14 largest home loan servicers.

The GAO report, which focused on problems in the mortgage industry and the lack of federal oversight, is the first official study to feature a partial tally of military families whose homes have been illegally seized. The 50 or so wrongful foreclosures were discovered during regulators' review of only about 2,800 loans that experienced foreclosure last year.

Millions of other foreclosures in recent years have not been reviewed by regulators. More than 2.8 million homes received a foreclosure filing in 2009, and nearly 2.9 million residences got one last year, according to RealtyTrac, a California-based data provider.

Read more: http://www.huffingtonpost.com/2011/05/05/banks-illegal-foreclosure-soldiers-gao-report_n_858207.html

[aquart]

1. And how do they plan to make their victims whole?

Or is no one demanding that?

[Tripod]

2. k&r

[melm00se]

3. every summons and complaint I ever signed

as the VP of the collections department always had verbiage that said that the debtor was not covered by the SSCRA (Soldiers and Sailors Credit Relief Act - the predecessor of the current law).

During the 1st Gulf War, we split off all the loans by people who were called up to active duty and treated them completely differently than the rest of out portfolio.

[No Elephants]

4. What a job! And I had to leave social work because I was getting too depressed by

my cients' situations.

[melm00se]

5. one of the interesting parts of the job was to look at

the actual foreclosure rates as compared to the overall portfolio.

Back in the day the foreclosure rate was less than 0.50%...so 995 out of a 1000 clients never darkened my door