Federal regulators crack down on abuse of military by some mortgage companies Federal financial regulators on Thursday moved to tighten oversight of how mortgage companies handle military reassignments, to prevent unfair treatment of service members when they're transferred to new bases and must sell their homes or find renters. Government officials said about a third of active-duty military personnel are required to move each year. Regulators detailed several practices by some mortgage servicers that would be considered unfair, deceptive or abusive, including failing to notify service members of assistance programs or requiring them to waive their rights to special protections for military before offering help. The regulators said they would also crack down on mortgage servicers who advise military homeowners to stop paying their mortgages in order to qualify for financial assistance programs. They also are checking to ensure timely communication by the servicers. "Those who serve our country deserve to be given the best service by their mortgage servicer," said Richard Cordray, director of the Consumer Financial Protection Bureau. The new guidelines follow congressional hearings and public outcry over accusations that thousands of military members were charged high mortgage interest rates and were illegally foreclosed upon in recent years. JP Morgan Chase spent $27 million last year to settle a class-action lawsuit over the issue. Other banks have also settled suits over similar violations of military consumer protection laws. Thursday's guidance was issued jointly by the CFPB, the Federal Reserve, the Federal Deposit Insurance Corp., the National Credit Union Administration and the Office of the Comptroller of the Currency.