Delaware Attorney General Beau Biden led negotiations to protect America’s soldiers from wrongful foreclosures.
The special provisions for members of the military is part of the mortgage servicing agreement reached between states, the federal government and several major lenders. The banks include JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.
Under the agreement, members of the military who were victims of wrongful foreclosures will receive a minimum payment of $116,785 plus reimbursement of lost equity and interest. The agreements come amid accusations that the banks violated the Serivcemembers Civil Relief Act.
As a Major in the Delaware Army National Guard and someone who served a tour of duty in Iraq, Biden says, “I have an up close and personal perspective on issues that this settlement deals with head on.” He says American servicemen and women should be free from worrying about what’s happening on the homefront, while they are serving their country, especially on foreign soil. “Unfortunately, that has not been the case for too many service members over the last decade of war on two fronts that we have been asking our service members to fight.”
Biden says the violations are deeply troubling as a JAG officer and as an Attorney General in a state with a significant military presence.
Also as part of the agreement, the banks are required to pay a refund with interest to any servicemember who was charged interest on a mortgage in excess of six percent.