Alert May 29, 2012

The House of Representatives Votes to Expand Foreclosure Protections for Servicemembers

The House of Representatives passed an amendment to the National Defense Authorization Bill of 2013, which expands foreclosure protections for servicemembers under the Servicemembers Civil Relief Act. The amendment amends Section 527 (maximum interest rate provision) and Section 533 (mortgage foreclosure protections) by:
  • Extending the time period for which a member may be protected under SCRA for foreclosure from 9 months to 12 months;
  • Extending protections to surviving spouses and totally disabled veterans leaving the military;
  • Eliminating sunset provisions added in 2008;
  • Prohibiting credit discrimination against servicemembers;
  • Requiring lending institutions to designate a SCRA compliance officer; and
  • Requiring lending institutions with $10 billion or more in assets to maintain a toll-free telephone number for SCRA-related matters.
The Senate is taking up similar bills.  Click here for the amendment.