DEPARTMENT OF JUSTICE ANNOUNCES COMPENSATION FOR SERVICEMEMBERS

So in my Ph.D. program, my specialty area is the financial behavior of military and military families. As in the past, I'll continue to keep you up to date with the latest financial planning news for military members. Here's the latest.....
DEPARTMENT OF JUSTICE ANNOUNCES COMPENSATION FOR SERVICEMEMBERS

AS PART OF SETTLEMENT WITH BANK OF AMERICA

http://www.justice.gov/opa/pr/2011/November/11-ag-1487.html


WASHINGTON – The Justice Department announced today that, as part of its settlement with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, servicemembers whose homes were unlawfully foreclosed upon will each receive a minimum $116,785 plus compensation for any equity lost to compensate them for the bank’s alleged violation of the Servicemember Civil Relief Act (SCRA).

Bank of America agreed to pay $20 million to approximately 160 servicemembers who were illegally foreclosed on between 2006 and the middle of 2009. Under the agreement, Bank of America agreed to provide information about its foreclosures from mid 2009-2010 and will pay damages in the same minimum amount to those servicemembers whose homes were illegally foreclosed upon to compensate for the loss of their homes. The review is on-going.

“The men and women serving our nation should not have to worry about a bank foreclosing on their home while they bravely serve our country,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will vigorously enforce the laws that protect servicemembers while they do the difficult and necessary work of protecting our country. We have and will continue to work hard to ensure that servicemembers receive the full protections of the law and relief they deserve in a timely fashion.”

On May 26, 2011, the department announced a settlement with BAC Home Loans Servicing LP, formerly known as Countrywide Home Loans Servicing LP, which resolved allegations that the bank unlawfully foreclosed on servicemembers’ homes in violation of the SCRA. This is the largest SCRA settlement ever reached by the department. The Department of Defense also provided critical assistance in identifying the servicemembers whose rights were violated.

Beginning on Nov. 14, 2011, letters will be sent to 157 servicemembers to notify them of the amount of money that they may receive under the settlement. The settlement agreement set a deadline for the end of November 2011 for the Justice Department to determine the amount of damages to which servicemembers may be entitled.

The SCRA provides critical additional consumer and other protections to the men and women serving our nation in the military – its enactment was a recognition that those who are making great sacrifices to protect us deserve our full support at home.

For more information on the Justice Department’s work to protect servicemembers, please visit www.servicemembers.gov.

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Back in the Saddle Again

It's that time of year again....New Year's Resolutions! I also just returned from a Kansas State University (where I'm now a Ph.D. student in Financial Therapy) teaching retreat, and we learned a plethora of intriguing ideas incorporating media into the classroom. It has re-inspired me to keep up the blog.

So the postings will continue, but will be more succinct and research-based. Of course, it's always around the topic of personal finance, so here's to keeping this New Year's resolution!

The Mississippi Agricultural and Forestry Experiment Station just completed a study looking at a student's personal finances. They found links between personal finance and relationships, living arrangements, and religious preferences. Interesting study! Take a look.....

Long-Term Care: To purchase or not to purchase...that is the question!

I recently had a question about whether to purchase Long-term Care (LTC) Insurance. This came from a fairly young adult and therefore, there were many questions if to purchase it at a young age. My parents recently have purchased LTC policies (at an older age) and it was quite the learning experience. One of the best pieces of advice I received was: Choose a strong A+ insurer who will be around for the next 50 years! This is vital with LTC since you might not need the service for years to come. LTC is one of the most used insurances in the industry and hence, the premiums can be quite a bit more expensive. Therefore, it's important that you balance price with benefit. Every situation is different, and I highly recommend you speak to a LTC specialist about your specific situation. In the meantime, here is the government's National Clearinghouse on LTC. Happy shopping!

Money Sense from the NYSE

Today, I was on a financial literacy webinar and learned about a great new resource. The New York Stock Exchange (NYSE) has recently released a financial literacy web-based tool to the general public. Find it at www.nysemoneysense.com/ There is a section for questions, great articles, ideas and tips about money, and a list of resources for even more information. Take a look....you might find the answer to your money question!

TWO WEEKS PAY

So a few weeks ago at the CFP Board anniversary, I ran into the editor of the Daily Finance Brief: Personal Finance, One Day at a Time. I've been a diligent reader for these last few weeks and I've been very impressed with the variety and depth of financial information shared. This blog post TWO WEEKS PAY was especially enlightening for those of us looking to buy a home in the near future. Go ahead try it out for yourself and see if you can't find something that you like too!

Tax Savings Tool at WhiteHouse.gov

The White House has launched a Tax Savings Tool at WhiteHouse.gov. This tool helps Americans know about and take advantage of the middle class tax refunds passed in the Recovery Act last year. With a few simple questions, the tool generates a printable checklist anyone can use to make sure they don't miss out on any of the benefits they may be owed. Give it a shot and make sure you are getting all of the tax breaks you get this year!

Going Green: Opting Out of Mailing Lists

Are you the victim of never-ending mailing solicitations that go straight to the shredder? Well, after a little research, I have found that many times the mailing lists come from the credit bureaus. Yep, you got it....the same people who sell you a credit report and score are also making money from the otherside by selling your information to marketing companies.

Experian has a detailed summary of how to opt out of annoying junk mail. Click here to call and get your name off the mailing list. Do yourself and the environment a favor!