Units of Bank of America and Morgan Stanley, both with branches in Connecticut, have agreed to pay more than $22 million to settle charges that they improperly foreclosed on active-duty members of the U.S. military, Reuters reports.
The U.S. Justice Department said Thursday the Bank of America unit, which was previously part of Countrywide Financial, will pay $20 million to resolve allegations it foreclosed on the homes of about 160 service members between January 2006 and May 2009 without court orders.
Saxon Mortgage Services Inc, part of Morgan Stanley, will pay $2.35 million to resolve allegations that it did the same to about 17 service members between January 2006 and June 2009, the government said.
