Bank of America establishing new program to assist military homeowners

In light of recent news stories about JPMorgan Chase and Deutsch Bank being found in violation of military homeowners’ rights under the Soldiers and Sailors Civil Relief Act (“SCRA”), on February 10, 2011, Larry DiRita, a spokesman for Bank of America appeared on Good Morning America* to announce a new program to assist military homeowners.

While specific details have not yet been announced, the intention of the new program is to allow Bank of America to reduce a military homeowner’s principal if they are in trouble, to extend their payments or to reduce their interest rate.  

DiRita further stated that it is essential for military personnel to be upfront with their lender, and in the case of Bank of America, tell them “I’m in the military, I need some help.”  That will be all Bank of America needs in order to place the military member into the new program and allow the parties to work out a reasonable solution right away.

“Our goal is, look, if you are a military person, you are deployed, you don’t need to be worrying about your house,” DiRita told George Stephanopolous.