A lawsuit filed by a service member against PHH Mortgage Corp. and a defunct foreclosure trustee that was dismissed by a federal judge caught the attention of the Justice Department — which has extracted a settlement from the trustee on behalf of multiple service members.

The lawsuit was filed in November 2017 by Jacob McGreevey against PHH and Northwest Trustee Services Inc. alleging violations of the Servicemembers Civil Relief Act, which prohibits foreclosures on homes owned by active-duty and recently active military service members.

According to the plaintiff, Northwest Trustee Services Inc. violated the law when it foreclosed on his Vancouver, Washington, property in 2010, less than two months after his release from active duty in Operation Iraqi Freedom.

Source: Mortgage Daily