Newsroom

February 10, 2012

Petraeus welcomes mortgage servicing settlement

The $25 billion settlement reached with the nation's top five mortgage servicers will help service members who suffered under violations of the Servicemembers Civil Relief Act, Holly Petraeus, assistant director for servicemember affairs at the Consumer Financial Protection Bureau, said in a statement Friday.

The provisions in the settlement relating to the SCRA "will help ensure that members of the military won't be denied critical consumer protections or face foreclosure when they are deployed to a war zone," Petraeus said. "The settlement also provides a measure of justice for those families who saw their homes taken from them in violation of the SCRA, or did not receive the interest-rate reduction to which they were entitled." She also welcomed the agreement's attempt to address the challenges facing those receiving orders to move.

The statement was made during a press call Friday with U.S. Assistant Attorney General for Civil Rights Thomas Perez and Delaware Attorney General Beau Biden, the CFPB reported.

The website created last week to provide details of the settlement is expected to soon include links to the settlement documents and other information. Already available is a document detailing servicing standards imposed by the agreement; SCRA protections are noted.