2 firms to pay for improper military foreclosures

Bank of America, Morgan Stanley agree to $22 million deal

By DEREK KRAVITZ and PETE YOST
The Associated Press

WASHINGTON — Two mortgage lenders will pay more than $22 million combined to settle federal civil charges that they improperly foreclosed on 178 military personnel, some of whom were serving in the Iraq or Afghanistan wars.

Subsidiaries of Bank of America Corp. and Morgan Stanley failed to obtain court orders before imposing the foreclosures between 2006 and 2009, the Justice Department said Thursday. The cases will result in an average of $125,562 in payments per person. The foreclosed homes were in 22 states.

The settlement is "easily the largest amount recovered" in a case of improper military foreclosures, said Thomas E. Perez, an assistant attorney general.

"The men and women who serve our nation in the armed forces deserve, at the very least, to know that they will not have their homes taken from them wrongfully while they are bravely putting their lives on the line on behalf of their country," Perez said.

More at: http://www.msnbc.msn.com/id/43187218/ns/business-eye_on_the_economy/t/firms-pay-improper-military-foreclosures/