Tuesday, November 29, 2011
We knew the banks were screwing active duty sevicemembers
But the illegal foreclosures seemed limited to a small number, still bad but they were making restitution. Now it looks like the number is more like 5000 and the illegal action carries a prison sentence for the perps.
This mostly involves violations of the Servicemembers Civil Relief Act, in particular the restriction on foreclosing on active duty military while they are overseas. The scandal has led to an extreme degree of restitution from the banks, which have been camo-washing their reputations by providing settlements of up to $117,000 per wrongful foreclosure. The banks know they are severely exposed by illegal foreclosures on members of the military. In fact, violations of the SCRA carry with it potential sentences of up to a year in prison.Dave Dayen is on this at FDL.
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