Village Capital agrees to over $500,000 settlement over servicemember mortgage allegations
DOJ says the settlement requires at least $425,000 for affected servicemembers, a civil penalty and changes to mortgage-servicing practices.
What the record says
The Justice Department announced October 19 that VA home-loan servicer Village Capital & Investment LLC will pay over $500,000 to resolve allegations involving Servicemembers Civil Relief Act interest-rate benefits and retaliation. DOJ says the alleged failures affected at least 41 servicemembers' mortgages. The settlement requires at least $425,000 for affected servicemembers and a $79,380 civil penalty, along with revised policies and employee training. DOJ alleged failures to apply interest relief correctly, misleading statements about rates and retaliation against borrowers who requested benefits.
Source details and supporting locations.
Practical next step
Servicemembers or dependents who believe their rights were violated can consult an Armed Forces Legal Assistance Program office using the official resources linked by DOJ.
Limits and what is not established
This reports DOJ's allegations and announced settlement, not a criminal conviction. The notice does not establish that compensation has already reached borrowers or that every Village Capital customer is eligible. Individual legal rights depend on the circumstances.
Sources checked October 20, 2026. Later notices may change instructions or arrangements.
Original sources
U.S. Department of Justice: original information