A bill to amend the Servicemembers Civil Relief Act to improve the protections for servicemembers against mortgage foreclosures, and for other purposes.

Summary: Military Family Home Protection Act - Amends the Servicemembers Civil Relief Act to allow a court, in an action to enforce an obligation on real or personal property secured by a mortgage against a servicemember on active duty, a totally disabled veteran, or the surviving spouse of a member who died during military service, to either: (1) stay the proceedings for a period of time as justice and equity require, or (2) adjust the obligation to preserve the interests of all parties. Prohibits the sale, foreclosure, or seizure of the subject property for the service period, as well as the 12-month period after: (1) the servicemember is discharged or redeployed from a contingency operation, (2) the veteran is retired, or (3) the death of the servicemember (in the case of a surviving spouse). Increases the civil penalties for violations of the sale or foreclosure prohibitions. Prohibits an individual from being denied or refused credit solely by reason of eligibility for relief under this Act.

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 with respect to the protections afforded under this Act.

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) Mortgage Protection.--
            (1) In general.--Section 303 of the Servicemembers Civil 
        Relief Act (50 U.S.C. App. 533) is amended to read as follows:

``SEC. 303. MORTGAGES AND TRUST DEEDS.

    ``(a) Mortgage as Security.--This section applies only to an 
obligation on real or personal property that is secured by a mortgage, 
trust deed, or other security in the nature of a mortgage and is owned 
by a covered individual as follows:
            ``(1) With respect to an obligation on real or personal 
        property owned by a servicemember, such obligation that 
        originated before the period of the servicemember's military 
        service and for which the servicemember is still obligated.
            ``(2) With respect to an obligation on real property owned 
        by a servicemember serving in support of a contingency 
        operation (as defined in section 101(a)(13) of title 10, United 
        States Code), such obligation that originated at any time and 
        for which the servicemember is still obligated.
            ``(3) With respect to an obligation on real property owned 
        by a veteran described in subsection (f)(1)(B), such obligation 
        that originated at any time and for which the veteran is still 
        obligated.
            ``(4) With respect to an obligation on real property owned 
        by a surviving spouse described in subsection (f)(1)(C), such 
        obligation that originated at any time and for which the spouse 
        is still obligated.
    ``(b) Stay of Proceedings and Adjustment of Obligation.--(1) In an 
action filed during a covered time period to enforce an obligation 
described in subsection (a), the court may after a hearing and on its 
own motion and shall upon application by a covered individual when the 
individual's ability to comply with the obligation is materially 
affected by military service--
            ``(A) stay the proceedings for a period of time as justice 
        and equity require; or
            ``(B) adjust the obligation to preserve the interests of 
        all parties.
    ``(2) For purposes of applying paragraph (1) to a covered 
individual who is a surviving spouse of a servicemember described in 
subsection (f)(1)(C), the term `military service' means the service of 
such servicemember.
    ``(c) Sale or Foreclosure.--A sale, foreclosure, or seizure of 
property for a breach of an obligation described in subsection (a) 
shall not be valid during a covered time period except--
            ``(1) upon a court order granted before such sale, 
        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) 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.
    ``(e) Proof of Service.--(1) A veteran described in subsection 
(f)(1)(B) shall provide documentation described in paragraph (2) to 
relevant persons to prove the eligibility of the veteran to be covered 
under this section.
    ``(2) Documentation described in this paragraph is a rating 
decision or a letter from the Department of Veterans Affairs that 
confirms that the veteran is totally disabled because of one or more 
service-connected injuries or service-connected disability conditions.
    ``(f) Definitions.--In this section:
            ``(1) The term `covered individual' means the following 
        individuals:
                    ``(A) A servicemember.
                    ``(B) A veteran who was retired under chapter 61 of 
                title 10, United States Code, and whom the Secretary of 
                Veterans Affairs, at the time of such retirement, 
                determines is a totally disabled veteran.
                    ``(C) A surviving spouse of a servicemember who--
                            ``(i) died while serving in support of a 
                        contingency operation if such spouse is the 
                        successor in interest to property covered under 
                        subsection (a); or
                            ``(ii) died while in military service and 
                        whose death is service-connected if such spouse 
                        is the successor in interest to property 
                        covered under subsection (a).
            ``(2) The term `covered time period' means the following 
        time periods:
                    ``(A) With respect to a servicemember, during the 
                period beginning on the date on which such 
                servicemember begins military service and ending on the 
                date that is 12 months after the date on which such 
                servicemember is discharged from such service.
                    ``(B) With respect to a servicemember serving in 
                support of a contingency operation, during the period 
                beginning on the date of the military orders for such 
                service and ending on the date that is 12 months after 
                the date on which such servicemember redeploys from 
                such contingency operation.
                    ``(C) With respect to a veteran described in 
                subsection (f)(1)(B), during the 12-month period 
                beginning on the date of the retirement of such veteran 
                described in such subsection.
                    ``(D) With respect to a surviving spouse of a 
                servicemember described in subsection (f)(1)(C), during 
                the 12-month period beginning on the date of the death 
                of the servicemember.''.
            (2) 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 
303(f)(1).''.
            (3) Repeal of sunset.--Subsection (c) of section 2203 of 
        the Housing and Economic Recovery Act of 2008 (Public Law 110-
        289; 50 U.S.C. App. 533 note) is amended to read as follows:
    ``(c) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.''.
    (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 303 
                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 by''; and
            (2) by adding at the end the following new subsection:
    ``(b) In addition to the protections under subsection (a), an 
individual who is eligible, or who may likely become eligible, for any 
provision of 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 eligibility.''.

SEC. 3. 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 Web site of the institution.''.