Village Capital settles Department of Justice military mortgage rate claims

Mortgage servicer Village Capital will pay over $500,000 to resolve claims that it violated interest rate caps for active duty military personnel.

FTMQ Real Estate, written by our newsroom21 October 2026 at 01:080 views

Mortgage servicer Village Capital and Investment LLC has agreed to pay more than $500,000 to settle claims brought by the Department of Justice, HousingWire, KSNV, Sierra Sun Times, Hoodline, and Traders Union reported. Federal prosecutors alleged that the company violated the Servicemembers Civil Relief Act by mishandling interest rate protections for active duty borrowers. [1][2][3][4][5]

According to HousingWire, the Civil Rights Division of the Department of Justice and the United States Attorney Office for the District of Nevada alleged that the violations occurred between March 1, 2020, and the effective date of the settlement. The government alleged that the servicer failed to apply the statutory 6% interest rate cap and retaliated against military borrowers who requested relief. [1]

HousingWire reported that Village Capital did not immediately respond to requests for comment following the announcement of the agreement. [1]

Village Capital will pay more than $500,000 to settle Department of Justice claims.
The settlement addresses alleged violations of the Servicemembers Civil Relief Act regarding a 6% interest rate cap.
Alleged violations occurred between March 1, 2020, and the settlement date.

Sources

Every paragraph above points to the numbered items it rests on. Read the originals here.

[1]Village Capital settles over broken 6% VA loan rate capHousingWire, 14d ago (the report this story comes from)
[2]VA loan servicer Village Capital to pay $500,000 over alleged SCRA violationsKSNV, 15d ago
[3]VA Home Loan Servicer Village Capital to Pay Over $500,000 Each for Violating Rights of Over 40 Servicemembers’Sierra Sun Times, 14d ago
[4]Village Capital of Henderson Pays $500K in SCRA SettlementHoodline, 15d ago
[5]Village Capital to pay over $500,000 over servicemember mortgage rights allegationsTraders Union, 15d ago

Background

[6]Uriarra Village, Australian Capital Territory on Wikipedia

Our newsroom writes these reports with the help of software, from the 6 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.

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