Ops Analyst

http://www.justice.gov/opa/pr/2008/December/08-crt-1108.html

FOR IMMEDIATE RELEASE

Monday, December 15, 2008

WWW.USDOJ.GOV

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The Justice Department Resolves Investigation Under Servicemembers Civil Relief Act of Homecomings Financial, LLC

WASHINGTON - The Justice Department today announced the resolution of its investigation of Homecomings Financial, LLC (Homecomings), under the Servicemembers Civil Relief Act (SCRA). The SCRA suspends or modifies certain civil obligations of individuals serving on active duty in the military.

The Department of Justice initiated its SCRA investigation in response to an inquiry from Master Sergeant Brenda S. Gomez. Master Sergeant Gomez received a permanent change of station order transferring her to a new base. When she sold her home to move closer to the new base, Master Sergeant Gomez requested that Homecomings waive the prepayment penalty on her residential mortgage loan, but her request was denied.

While the Justice Department’s investigation was pending, Homecomings agreed to refund Master Sergeant Gomez’s $9,144 prepayment penalty. In addition, Homecomings, which is owned by Residential Funding Company, LLC, and is a subsidiary of GMAC, LLC, implemented a modified policy to waive the prepayment penalties of servicemembers who may find themselves in similar circumstances in the future.

"By adjusting certain civil obligations, the Servicemembers Civil Relief Act allows men and women on active duty to focus on the defense of this Nation," said Grace Chung Becker, Acting Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division is encouraged by the steps Homecomings has taken on behalf of Master Sergeant Gomez and servicemembers nationwide."

Homecomings and GMAC Mortgage, LLC now will waive prepayment penalties upon request on residential mortgage loans obtained by active duty servicemembers who receive permanent change of station orders to bases 30...