Violations of SCRA Mortgage Protections Identified through Various Reviews
Mortgage
servicer
Source of data
doJ
Period in
review
Jan. 2006 to may 2009
Number of
improper
SCRA
foreclosures
identified
143
Number of
instances in
which interest
rates and fees
charge were
not reduced
not specified
Wells Fargo
self-reported
Foreclosure: Jan. 2006 to June 2010
Interest rate and fees: Jan. 2006 to
June 2011
Jan. 2005 to July 2011
17
3,224
JPMorgan Chase
self-reported
class action
settlement
54
not specified
10,000
13,500
Citi
self-reported
Foreclosure: Jan. 2007 to June 2011
Interest rate and fees: Jan. 2006 to
June 2011
0
140
Ally Financial
PHH Mortgage
Sun Trust Mortgage
Saxon Morgage
Services, Inc.
self-reported
self-reported
self-reported
77
77
0
923
0
2
doJ
Jan. 2006 to dec. 2010
22
not specified
source: gao analysis of doJ complaints and mortgages servicers’ response to house committee on oversight and government
Dedicated Service Member’s Customer Support
Create telephone hotlines and websites exclusively for service members supported by trained
representatives to assist customers with SCRA requests or questions. They can serve
as the primary point of contact for any problem with delinquency, remediation,
and foreclosure.
Conduct an SCRA Risk Assessment
To ensure your bank is following the applicable SCRA requirements, a risk assess-
ment could be conducted to determine whether appropriate controls are in place
to mitigate SCRA risks.
n Policies and procedures, to include (but not be limited to):
• a process for determining eligibility of a service member and notifying them
of SCRA benefits;
• ensuring no additional charges, such as collection fees or foreign transaction
fees, cause the bank to exceed the six percent interest limitations;
• procedures to search the Defense Manpower Data Center database before
filing a default judgment;
• procedures for initiating and pursuing a waiver of SCRA protections; and
• a review of state laws that may provide additional benefits to service members
than those provided in SCRA.
n Determine if any systems are capable of assisting the bank to meet SCRA
requirements (including testing and validation)
n List of controls, including:
• using third-party vendors for SCRA related processes;
• ensuring credit applications received are not denied or offered less favorable
terms due to SCRA protections; and
• reviewing, approving, and retaining SCRA requests.
n Monitor SCRA-related complaints filed and determine how the institution resolves and tracks them
n Ensure appropriate employees receive tailored SCRA training
In announcing the Office of the Comptroller of the Currency and Department
of Justice enforcement action against Capital One, Comptroller of the Currency
