New tool helps protect military families in default

CoreLogic today introduced the Verification of Military Status (VOMS), a compliance and loan tool that allows mortgage servicers to quickly and accurately identify military borrowers.

The Servicemembers Civil Relief Act of 2003 (SCRA) bans such actions as foreclosures and also caps interest rate increases for those on active duty and up to 90 days following discharge. SCRA helps to ensure the proper handling of foreclosures on protected borrowers and avoid potential regulatory investigations, lawsuits and costly settlements for non-compliance.

VOMS provides a convenient and cost-effective compliance solution for identifying and verifying the active duty military status of a borrower as defined by the SCRA.

“Unlawful foreclosures have resulted in nearly $50 million in recent settlements between mortgage companies and military service members,” said Tim Grace, senior vice president of Product Management and Analytics at CoreLogic, a provider of information, analytics and business services “With approximately 5 million active duty families across the U.S., VOMS provides a critical due diligence and compliance solution to help guide servicers in the appropriate management of SCRA-protected borrowers facing foreclosures.”