Wells Fargo joins US military member mortgage initiative.
BANKING AND CREDIT NEWS-August 27, 2014--Wells Fargo joins US military member mortgage initiative
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27 August 2014 -- US financial services firm Wells Fargo & Co (NYSE: WFC) said it will join with other mortgage servicers in an initiative to help active-duty military mortgage customers understand and take advantage of the financial benefits available to them under the Servicemembers Civil Relief Act.
Under SCRA, active-duty servicemembers are eligible for financial benefits and foreclosure protections on loans taken out prior to active duty military service.
According to a January 2014 report from the US government Accountability Office, however, many eligible servicemembers are not requesting the financial benefits available to them for residential real estate loans.
The GAO report recommended that additional efforts be made to educate servicemembers and to encourage them to take advantage of their SCRA benefits.
As part of its commitment to helping servicemember mortgage customers, Wells Fargo has implemented additional processes and procedures for military customers, including comparing all residential real estate loans it services to the Defense Manpower Data Center database on a quarterly basis to proactively identify active-duty servicemembers who may be eligible for benefits and protections under SCRA.
The initiative also includes proactively reaching out to potentially eligible active-duty servicemembers identified through the DMDC database through a variety of methods to inform them of the benefits available under SCRA and how to apply for them; and
Wells said it would also work across the industry with other servicers to develop simplified processes and procedures that make it easier for active-duty servicemembers to request the real estate loan protections under SCRA.
The firm also provides mortgage benefits and protections for servicemembers over and above what the law requires, including reducing their interest rates to 4% per year on first lien consumer real estate loans that the company owns and that otherwise qualify for benefits under SCRA, mortgage assistance if needed, and foreclosure protection not covered by SCRA.
Wells Fargo posts USD 1.6tn in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 locations, 12,500 ATMs, and the Internet -- and has offices in 36 countries to support customers who conduct business in the global economy.
Find out more at www.wellsfargo.com.
1 USD = .60 GBP
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Aug 27, 2014|
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