VA Participates in $25 Billion Mortgage Abuse Settlement

Image by Danilo Rizzuti. (Free Digital Photos.net)

The Department of Veterans Affairs joined with the Department of Justice, a coalition of state attorneys general and other federal agencies in the settlement over foreclosure and mortgage abuses.

The nation’s five largest mortgage servicing agencies agreed to the landmark $25 billion settlement that addresses past mortgage loan servicing and foreclosure abuses, provides substantial financial relief to borrowers, and establishes future new homeowner protections.

“Through this historic settlement, VA has ensured that Veterans, Servicemembers, and National Guard and Reserve members will continue to receive every possible opportunity to retain their homes,” said Secretary of Veterans Affairs Eric K. Shinseki. 

The agreement provides enhanced protections under the Servicemembers Civil Relief Act and provides additional assistance when Servicemembers are forced to sell their home at a loss due to reassignment to another location.

The banks also agree to undertake principal forgiveness, interest-rate-reduction refinancing, and forbearance during unemployment.

  • Details on what the mortgage settlement means to you are HERE.
  • Information about the VA Home Loan Guaranty program is online HERE.
  • Videos of Veterans who got VA help and kept their homes or avoided foreclosure can be viewed HERE.
  • A national toll-free number to talk with a VA loan specialist 1-877-827-3702.
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