Military Family Home Protection Act

Summary: Military Family Home Protection Act - Amends the Servicemembers Civil Relief Act (the Act) to allow a court, in an action to enforce an obligation on real or personal property secured by a mortgage against a servicemember who is, or was, eligible for hostile fire or imminent danger pay during a period of military service, a servicemember placed on convalescent status, a veteran who was medically discharged and retired, or the surviving spouse of a member who died during military service, to stay such proceedings, upon request of a covered individual, for a specified period (generally, one year after the event occurred for which the individual became covered). Prohibits the sale, foreclosure, or seizure of the subject property during such period, except upon a court order or pursuant to an agreement authorized under the Act. Requires the individual so covered to notify the mortgagee, trustee, or other creditor of such coverage. Provides a criminal penalty for violations of the sale or foreclosure prohibitions, and increases current civil penalties for mortgage violations under the Act. Prohibits an individual from being denied or refused credit solely by reason of eligibility for relief under this Act. Requires a servicemember-mortgagor who does not reside in the mortgage-secured residence due to military relocation and who inquires about, or applies for, a refinancing to be considered to occupy such residence during the period of the relocation. Requires each lending institution acting as a creditor to such servicemember, veteran, or surviving spouse to designate an employee responsible for ensuring the institution's compliance with the requirements of this Act. Requires any such institution that had prior annual assets of $10 billion or more to maintain on its primary website a toll-free number for information concerning such requirements.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Family Home Protection 
Act''.

SEC. 2. MORTGAGE PROTECTION FOR MEMBERS OF THE ARMED FORCES, SURVIVING 
              SPOUSES, AND CERTAIN VETERANS.

    (a) Members of the Armed Forces, Surviving Spouses, and Certain 
Disabled Veterans.--
            (1) In general.--Title III of the Servicemembers Civil 
        Relief Act (50 U.S.C. App. 501 et seq.) is amended by inserting 
        after section 303 the following new section:

``SEC. 303A. MORTGAGES AND TRUST DEEDS OF CERTAIN SERVICEMEMBERS, 
              SURVIVING SPOUSES, AND DISABLED VETERANS.

    ``(a) Mortgage as Security.--This section applies only to an 
obligation on real or personal property owned by a covered individual 
that--
            ``(1) originated at any time and for which the covered 
        individual is still obligated; and
            ``(2) is secured by a mortgage, trust deed, or other 
        security in the nature of a mortgage.
    ``(b) Stay of Proceedings.--
            ``(1) In general.--In accordance with subsection (d)(1), in 
        a judicial action pending or in a nonjudicial action commenced 
        during a covered time period to enforce an obligation described 
        in subsection (a), a court--
                    ``(A) may, after a hearing and on its own motion, 
                stay the proceedings until the end of the covered time 
                period; and
                    ``(B) shall, upon application by a covered 
                individual, stay the proceedings until the end of the 
                covered time period.
            ``(2) Obligation to stop proceedings.--Upon receipt of 
        notice provided under subsection (d)(1), a mortgagee, trustee, 
        or other creditor seeking to foreclose on real property secured 
        by an obligation covered by this section using any judicial or 
        nonjudicial proceedings shall immediately stop any such 
        proceeding until the end of the covered time period.
    ``(c) Sale or Foreclosure.--A sale, judicial or nonjudicial 
foreclosure, or seizure of property for a breach of an obligation 
described in subsection (a) that is not stayed under subsection (b) 
shall not be valid during a covered time period except--
            ``(1) upon a court order granted before such sale, judicial 
        or nonjudicial foreclosure, or seizure with a return made and 
        approved by the court; or
            ``(2) if made pursuant to an agreement as provided in 
        section 107.
    ``(d) Notice Required.--
            ``(1) In general.--To be covered under this section, a 
        covered individual shall provide to the mortgagee, trustee, or 
        other creditor written notice that such individual is so 
        covered.
            ``(2) Manner.--Written notice under paragraph (1) may be 
        provided electronically.
            ``(3) Time.--Notice provided under paragraph (1) shall be 
        provided during the covered time period.
            ``(4) Contents.--With respect to a servicemember described 
        in subsection (g)(1)(A), notice shall include--
                    ``(A) a copy of the servicemember's official 
                military orders, or any notification, certification, or 
                verification from a servicemember's commanding officer 
                that provides evidence of servicemember's eligibility 
                for special pay as described in subsection (g)(1)(A); 
                or
                    ``(B) an official notice using a form designed 
                under paragraph (5).
            ``(5) Official forms.--
                    ``(A) In general.--The Secretary of Defense shall 
                design and distribute an official Department of Defense 
                form that can be used by an individual to give notice 
                under paragraph (1).
                    ``(B) Use of official form not required.--Failure 
                by any individual to use a form designed or distributed 
                under subparagraph (A) to provide notice shall not make 
                such provision of notice invalid.
    ``(e) Aggregate Duration.--The aggregate duration for which a 
covered individual (except a servicemember described in subsection 
(g)(1)(A)) may be covered under this section is one year.
    ``(f) Misdemeanor.--A person who knowingly makes or causes to be 
made a sale, foreclosure, or seizure of property that is prohibited by 
subsection (c), or who knowingly attempts to do so, shall be fined as 
provided in title 18, United States Code, or imprisoned for not more 
than one year, or both.
    ``(g) Definitions.--In this section:
            ``(1) Covered individual.--The term `covered individual' 
        means the following individuals:
                    ``(A) A servicemember who is or was eligible for 
                hostile fire or imminent danger special pay under 
                section 310 of title 37, United States Code, during a 
                period of military service.
                    ``(B) A servicemember placed on convalescent 
                status, including a servicemember transferred to the 
                temporary disability retired list under section 1202 or 
                1205 of title 10, United States Code.
                    ``(C) A veteran who was medically discharged and 
                retired under chapter 61 of title 10, United States 
                Code, except for a veteran described in section 1207 of 
                such title.
                    ``(D) A surviving spouse (as defined in section 
                101(3) of title 38, United States Code, and in 
                accordance with section 103 of such title) of a 
                servicemember who died while in military service if 
                such spouse is the successor in interest to property 
                covered under subsection (a).
            ``(2) Covered time period.--The term `covered time period' 
        means the following time periods:
                    ``(A) With respect to a servicemember who is or was 
                eligible for hostile fire or imminent danger special 
                pay under section 310 of title 37, United States Code, 
                during a period of military service, during the period 
                beginning on the first day on which the servicemember 
                is or was eligible for such special pay during such 
                period of military service and ending on the date that 
                is one year after the last day of such period of 
                military service.
                    ``(B) With respect to a servicemember described in 
                paragraph (1)(B), during the one-year period beginning 
                on the date on which the servicemember is placed on 
                convalescent status or transferred to the temporary 
                disability retired list under section 1202 or 1205 of 
                title 10, United States Code.
                    ``(C) With respect to a veteran described in 
                paragraph (1)(C), during the one-year period beginning 
                on the date of the retirement of such veteran.
                    ``(D) With respect to a surviving spouse of a 
                servicemember as described in paragraph (1)(D), during 
                the one-year period beginning on the date on which the 
                spouse receives notice of the death of the 
                servicemember.''.
            (2) Clerical amendment.--The table of contents in section 
        1(b) of such Act is amended by inserting after the item 
        relating to section 303 the following new item:

``Sec. 303A. Mortgages and trust deeds of certain servicemembers, 
                            surviving spouses, and disabled 
                            veterans.''.
            (3) Conforming amendment.--Section 107 of the 
        Servicemembers Civil Relief Act (50 U.S.C. App. 517) is amended 
        by adding at the end the following:
    ``(e) Other Individuals.--For purposes of this section, the term 
`servicemember' includes any covered individual under section 303A.''.
    (b) Increased Civil Penalties for Mortgage Violations.--Paragraph 
(3) of section 801(b) of the Servicemembers Civil Relief Act (50 U.S.C. 
App. 597(b)(3)) is amended to read as follows:
            ``(3) to vindicate the public interest, assess a civil 
        penalty--
                    ``(A) with respect to a violation of section 207, 
                303, or 303A regarding real property--
                            ``(i) in an amount not exceeding $110,000 
                        for a first violation; and
                            ``(ii) in an amount not exceeding $220,000 
                        for any subsequent violation; and
                    ``(B) with respect to any other violation of this 
                Act--
                            ``(i) in an amount not exceeding $55,000 
                        for a first violation; and
                            ``(ii) in an amount not exceeding $110,000 
                        for any subsequent violation.''.
    (c) Credit Discrimination.--Section 108 of such Act (50 U.S.C. App. 
518) is amended--
            (1) by striking ``Application by'' and inserting ``(a) 
        Application or Receipt.--Application by''; and
            (2) by adding at the end the following new subsection:
    ``(b) Eligibility.--In addition to the protections under subsection 
(a), an individual who is entitled to any right or protection provided 
under this Act may not be denied or refused credit or be subject to any 
other action described under paragraphs (1) through (6) of subsection 
(a) solely by reason of such entitlement.''.
    (d) Effective Date.--Section 303A of the Servicemembers Civil 
Relief Act, as added by subsection (a), and the amendments made by this 
section, shall take effect on the date that is 90 days after the date 
of the enactment of this Act.

SEC. 3. TREATMENT OF RELOCATION FOR ACTIVE DUTY FOR PURPOSES OF 
              MORTGAGE REFINANCING.

    (a) In General.--Title III of the Servicemembers Civil Relief Act 
(50 U.S.C. App. 531 et seq.) is amended by inserting after section 
303A, as added by section 1(a)(1), the following new section:

``SEC. 303B. TREATMENT OF RELOCATION FOR ACTIVE DUTY FOR PURPOSES OF 
              MORTGAGE REFINANCING.

    ``(a) Treatment of Absence From Residence Due to Active Duty.--
            ``(1) In general.--Subject to paragraph (2), if, at any 
        time that a servicemember who is the mortgagor under an 
        existing mortgage does not reside in the residence that secures 
        the existing mortgage because of relocation described in 
        subsection (c)(1)(B), such servicemember inquires about or 
        applies for a covered refinancing mortgage, such servicemember 
        shall be, for all purposes relating to the covered refinancing 
        mortgage, including such inquiry or application and eligibility 
        for and compliance with any underwriting criteria and standards 
        regarding such covered refinancing mortgage, considered to 
        occupy the residence that secures the existing mortgage to be 
        paid or prepaid by such covered refinancing mortgage as the 
        principal residence of the servicemember during the period of 
        any such relocation.
            ``(2) Limitation.--Paragraph (1) shall not apply with 
        respect to a servicemember at any time if, during the five-year 
        period preceding such time, the servicemember entered into a 
        covered refinancing mortgage pursuant to this section.
    ``(b) Mortgages Originated Before Period Military Service.--If a 
covered refinancing mortgage is entered into pursuant to this section 
with respect to an existing mortgage that originated before the period 
of the servicemember's military service, such covered refinancing 
mortgage shall be deemed to be an obligation that originated before the 
period of the servicemember's military service and for which the 
servicemember is still obligated for purposes of section 303(a)(1).
    ``(c) Definitions.--In this section:
            ``(1) Existing mortgage.--The term `existing mortgage' 
        means a mortgage that is secured by a 1- to 4-family residence, 
        including a condominium or a share in a cooperative ownership 
        housing association, that was the principal residence of a 
        servicemember for a period that--
                    ``(A) had a duration of 13 consecutive months or 
                longer; and
                    ``(B) ended upon the relocation of the 
                servicemember caused by the servicemember receiving 
                military orders for a permanent change of station or to 
                deploy with a military unit, or as an individual in 
                support of a military operation, for a period of not 
                less than 90 days that did not allow the servicemember 
                to continue to occupy such residence as a principal 
                residence.
            ``(2) Covered refinancing mortgage.--The term `covered 
        refinancing mortgage' means any mortgage--
                    ``(A) that is made for the purpose of paying or 
                prepaying, and extinguishing, the outstanding 
                obligations under an existing mortgage or mortgages; 
                and
                    ``(B) that is secured by the same residence that 
                secured such existing mortgage or mortgages.''.
    (b) Clerical Amendment.--The table of contents for such Act is 
amended by inserting after the item relating to section 303A the 
following new item:

``Sec. 303B. Treatment of relocation for active duty for purposes of 
                            mortgage refinancing.''.

SEC. 4. REQUIREMENTS FOR LENDING INSTITUTIONS THAT ARE CREDITORS FOR 
              OBLIGATIONS AND LIABILITIES COVERED BY THE SERVICEMEMBERS 
              CIVIL RELIEF ACT.

    Section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 
527) is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Lending Institution Requirements.--
            ``(1) Compliance officers.--Each lending institution 
        subject to the requirements of this section shall designate an 
        employee of the institution as a compliance officer who is 
        responsible for ensuring the institution's compliance with this 
        section and for distributing information to servicemembers 
        whose obligations and liabilities are covered by this section.
            ``(2) Toll-free telephone number.--During any fiscal year, 
        a lending institution subject to the requirements of this 
        section that had annual assets for the preceding fiscal year of 
        $10,000,000,000 or more shall maintain a toll-free telephone 
        number and shall make such telephone number available on the 
        primary Internet website of the institution.''.