[Federal Register Volume 72, Number 57 (Monday, March 26, 2007)]
[Notices]
[Pages 14130-14132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5412]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5133-N-01]
Mortgage and Foreclosure Rights of Servicemembers Under the
Servicemembers Civil Relief Act: Informational Notice
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
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SUMMARY: This notice provides information regarding the homeowner
notification requirement of section 106(c)(5) of the Housing and Urban
Development Act of 1968. The Servicemembers Civil Relief Act (SCRA)
provides legal rights and protections that are applicable to the debts
of servicemembers and their dependents. Notice is to be provided to all
homeowners who are in default in order to inform them of mortgage and
foreclosure rights available to them under the SCRA if they are
servicemembers or dependents of servicemembers. HUD has developed, in
consultation with the Departments of Defense and Treasury, a final
disclosure form to be used by mortgagees for fulfilling this notice
requirement. HUD made the form available on its website in July 2006,
and the form is also attached as an appendix to this notice.
FOR FURTHER INFORMATION CONTACT: Leslie Bromer, Mortgage Servicing
Specialist, Asset Management and Disposition Division, Office of Single
Family Housing, Office of Housing, Department of Housing and Urban
Development, 451 Seventh Street, SW., Room 9180, Washington, DC 20410-
8000; telephone (202) 708-1672 (this is not a toll-free number).
Individuals with speech or hearing challenges may access this number
through TTY by calling the toll-free Federal Information Relay Service
at (800) 877-8339.
Questions regarding this notice may also be directed to the
National Servicing Center in Oklahoma City, Oklahoma, at (888) 297-
8685.
[[Page 14131]]
Individuals with speech or hearing challenges may access this number
through TTY by calling the toll-free Federal Information Relay Service
at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Servicemembers Civil Relief Act (50 U.S.C. app. 501 et seq.)
(SCRA) provides various protections to active duty military members and
reservists, or members of the National Guard called to active duty,
and, in limited situations, dependents of military members. The SCRA is
intended to ease the economic and legal burdens on military personnel
by postponing, suspending, or mitigating obligations, such as mortgage
payments and foreclosure actions. Section 688 of the National Defense
Authorization Act for Fiscal Year (FY) 2006 (Pub. L. 109-163, approved
January 6, 2006) (NDAA) amended the required content of notifications
of homeownership counseling availability under section 106(c)(5)(A)(ii)
of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(c)(5)(A)(ii)) and directed HUD to issue a final disclosure form
to be used by mortgagees in fulfilling the notice requirement.
II. HUD Notice of Servicemembers Rights Under SCRA
Pursuant to the NDAA amendment, HUD has developed, in consultation
with the Departments of Defense and Treasury, the final disclosure form
for the required notice of servicemember rights. The form is located in
the appendix to this notice. The form was also earlier made available
on HUD's Web site in July 2006 and can be found at http://www.hudclips.org/sub_nonhud/html/pdfforms/92070.pdf. All mortgage
loans, including conventional mortgages and mortgages insured by HUD,
are subject to the notification requirement. The notice is required to:
(1) Be sent to all homeowners who are in default on a residential
mortgage; (2) include the toll-free Military OneSource number (800-342-
9647) to call if servicemembers or their dependents require further
assistance; and (3) be made within 45 days from the date a missed
payment was due, unless the homeowner pays the overdue amount before
the expiration of the 45-day period.
III. Rights and Protections Under the SCRA
The SCRA provides, among other things, that a debt incurred by a
servicemember, or by a servicemember jointly with a spouse, prior to
entering military service, shall not bear interest at a rate above six
percent during the period of military service. (See section 207(a)(1)
of SCRA.) Servicemembers become eligible for the interest rate
limitation by providing to the creditor with written notice, a copy of
the military orders calling the servicemember to active duty, and any
orders further extending military service, not later than 180 days
after the date of the servicemember's termination or release from
military service. (See section 207(b)(1) of SCRA.) Upon receipt, the
creditor must limit interest on the obligation to no more than six
percent per year, effective as of the date on which the servicemember
is called to military service. (See section 207(b)(2) of SCRA.) Only a
court may grant the creditor an exception to the interest rate
limitation, which may only be granted if in the opinion of the court
the ability of the servicemember to pay interest on the obligation or
liability at a rate in excess of six percent per year is not materially
affected by reason of the servicemember's military service. (See
section 207(c) of SCRA.)
In a legal action to enforce a debt against real estate that is
filed during, or within 90 days after the servicemember's military
service, a court may stay the proceedings for a period of not less than
90 days or may adjust the debt. (See section 202(b)(1) of SCRA.) In
addition, the sale, foreclosure, or seizure of real estate shall not be
valid if it occurs during or within 90 days after the servicemember's
military service unless the creditor has obtained a court order
approving the sale, foreclosure, or seizure of the real estate. (See
section 303(c) of SCRA.)
In addition to the rights described above, the SCRA provides some
additional legal protections. HUD, however, is not in a position to
interpret or provide information on all of the various provisions of
the SCRA as they may affect the rights afforded creditors and
servicemembers. Such interpretations should be obtained for the
Department of Defense or should be determined by the courts.
IV. Verification of Military Service
Creditors who are otherwise unable to verify a debtor's military
status may request and obtain a statement as to military service from
the Department of Defense, pursuant to section 602 of the SCRA (50
U.S.C. app. 582). To facilitate SCRA searches, the Department of
Defense's Manpower Data Center (DMDC) has developed a secure public
internet access system through which any requester can quickly
determine whether an individual is currently in the armed forces. The
Web site for SCRA queries is http://www.dmdc.osd.mil/owa/scra/home. The
requester must provide the Social Security Number (SSN) and a last
name. First name, middle name, birth year, and birth month are
optional.
A report is executed by clicking the ``LookUp'' tab on the query
form. If the provided SSN and other identifying information match the
name of a person currently on active duty, the DMDC response report
will provide the named individual's branch of military service and
``begin date'' of Active Duty status. If the provided SSN is matched to
the name of a person on active duty but the last name and/or birth date
entered do not match the information recorded for that individual, the
DMDC response report page states, ``Based on the social security number
you have provided, the individual is currently on Active Duty. However,
the name or partial DOB, or both provided do not match the individual
against whom the social security number is assigned.'' If the DMDC does
not have information regarding whether the name of the identified
person is on active duty, the response report will only list the
supplied name with the text, ``Based on the information you have
furnished, the DMDC does not possess any information indicating the
individual is currently on active duty.''
There is no charge for the online SCRA queries and no
authorization, user ID, or password is required. Requesters needing
assistance may fax a request for a statement as to military service to
DMDC at (703) 696-4156, or call (703) 696-6762.
V. Paperwork Reduction Act Statement
The information collection requirements contained in this document
have been approved by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
OMB control number 2502-0565. In accordance with the Paperwork
Reduction Act, HUD may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection displays a currently valid OMB control number.
[[Page 14132]]
Dated: March 16, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
Appendix
United States Department of Housing and Urban Development
Servicemembers Civil Relief Act Notice
Legal Rights and Protections Under the SCRA
Servicemembers on ``active duty'' or ``active service,'' or a
dependent of such a servicemember may be entitled to certain legal
protections and debt relief pursuant to the Servicemembers Civil
Relief Act (50 U.S.C. App. 501, et seq.) (SCRA).
Who May Be Entitled to Legal Protections Under the SCRA
Active duty members of the Army, Navy, Air Force,
Marine Corps, Coast Guard, and active service National Guard;
Active service members of the commissioned corps of the
National and Atmospheric Administration;
Active service members of the commissioned corps of the
Public Health Service;
United States citizens serving with the armed forces of
a nation with which the United States is allied in the prosecution
of a war or military action; and
Dependents of the above (e.g., spouse or children).
What Legal Protections Are Servicemembers Entitled to Under the
SCRA?
The SCRA states that a debt incurred by a service
member, or spouse jointly, prior to entering military service shall
not bear interest at a rate above 6 percent during the period of
military service.
The SCRA states that in a legal action to enforce a
debt against real estate that is filed during, or within 90 days
after the servicemember's military service, a court may stop the
proceedings for a period of time, or adjust the debt. In addition,
the sale, foreclosure, or seizure of real estate shall not be valid
if it occurs during, or within 90 days after the servicemember's
military service unless the creditor has obtained a court order
approving the sale, foreclosure, or seizure of the real estate.
How Does a Servicemember or Dependent Request Relief Under the
SCRA?
A servicemember or dependent, or both, may request
relief under the SCRA by providing the lender a written notice with
a copy of the servicemember's military orders. (Note: Lender should
place its name, address, and contact information here.)
How Does a Servicemember or Dependent Obtain Information About the
SCRA?
The U.S. Department of Defense's information resource
is ``Military OneSource.'' Web site: http://www.militaryonesource.com
The toll-free telephone number for Military OneSource are:
[cir] From the United States: 1-800-342-9647.
[cir] From outside the United States (with applicable access
code): 800-3429-6477.
[cir] International Collect (through long distance operator): 1-
484-530-5908.
Servicemembers and dependents with questions about the
SCRA should contact their unit's Judge Advocate, or their
installation's Legal Assistance Officer. A military legal assistance
office locator for each branch of the armed forces is available at
http://legalassistance.law.af.mil/content/locator.php.
[FR Doc. E7-5412 Filed 3-23-07; 8:45 am]
BILLING CODE 4210-67-P