Filner Rebukes Mortgage Bank for Overcharging Military Families

January 28, 2011

Washington, D.C. - Bob Filner (D-CA), Ranking Democratic Member released the following statement regarding admission by JP Morgan Chase that it has been wrongly overcharging military families in violation of the Servicemembers’ Civil Relief Act:

“Having implemented laws to protect our service members and their families from foreclosure and high interest rates, I am outraged to learn that JP Morgan Chase deliberately broke the law by increasing mortgage interest rates and unjustly foreclosing on active duty families.  This is a slap in the face to our service members who are fighting abroad to protect our country and their families who should not have to worry about losing their home or making their mortgage payment.” 

Under current law, service members are provided mortgage interest rate and foreclosure protection.  Lenders are prevented from foreclosing on a veteran’s home within nine months after the end of military service and interest rates are capped at 6 percent.  JP Morgan Chase recently announced that they were issuing checks totaling $2 million to 4,000 affected service members.  Fourteen service members were improperly forced into foreclosure.  According to news reports, the errors occurred nationally over the last five years.

Filner added, “I supported these protections to prevent families from being taken advantage of by lenders while their spouse is serving abroad on active duty. In these troubled economic times they are an essential safeguard for the men and women serving our Nation.  I will continue to closely monitor and provide oversight and I look forward to working with Chairman Jeff Miller (R-FL) to introduce legislation to permanently extend the protections.”