The parties in Rowles, et al. v. Chase Home Finance, LLC, in the United States District Court for the District of South Carolina, reached a proposed class settlement, which was preliminarily approved by the court earlier this year. The proposed settlement seeks to resolve allegations that Chase violated the Servicemembers Civil Relief Act (“SCRA”) by failing to provide certain protections to servicemembers’ mortgage loans, home equity loans, and lines of credit while they were on active duty or for some period following active duty. The parties will be back in court in the fall for the Fairness Hearing, where the court will consider whether the proposed settlement is fair, reasonable, and adequate.
In May, the U.S. Department of Justice announced separate settlements with BAC Home Loans Servicing LP and Saxon Mortgage Service, Inc. to resolve claims that each violated the SCRA via wrongfully foreclosing upon active duty servicemembers. BAC is to pay $20 million to resolve a lawsuit alleging that it improperly foreclosed on 160 servicemembers. Additionally, BAC is required to implement numerous corrective measures to ensure future SCRA compliance. Saxon is to pay $2.35 million to resolve a lawsuit alleging it wrongfully foreclosed on 17 servicemembers. Saxon has also agreed to take numerous measures to ensure its SCRA compliance.