Mortgage Foreclosures: Regulatory Oversight of Compliance with Servicemembers Civil Relief Act (SCRA) Has Been Limited, GAO (Dodd-Frank Study)

With foreclosures rising, reports surfaced of instances in which financial institutions failed to comply with SCRA. the GAO examined the (1) eligibility for SCRA protections and extent of SCRA mortgage-related violations by depository institutions, (2) SCRA compliance oversight by prudential regulators and other federal agencies, and (3) the military services’ efforts to educate servicemembers on SCRA. The GAO collected data on populations eligible for SCRA from DOD and SCRA violations from banking and law enforcement agencies and reviewed a stratified random sample of prudential regulators’ examinations of banks and credit unions.  The GAO recommended that the various regulators 'conduct more extensive loan file testing for SCRA compliance." 

Cross References: Dodd-Frank Title X; Dodd-Frank Studies table.

View study in full here (links externally to GAO website).

 

Premium Content

Available only to Premium subscribers.

 

Tags