I 

113TH CONGRESS 

1ST SESSION H. R. 1842 

To amend the Servicemembers Civil Relief Act to improve the protections 

for servicemembers, surviving spouses, and disabled veterans against 

mortgage foreclosures, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2013 

Mr. CUMMINGS (for himself, Mr. MICHAUD, Mr. SMITH of Washington, Mrs. 

DAVIS of California, Mr. TAKANO, and Mr. TIERNEY) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

A BILL 

To amend the Servicemembers Civil Relief Act to improve 

the protections for servicemembers, surviving spouses, 

and disabled veterans against mortgage foreclosures, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Family Home 

5 Protection Act’’. 


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1 SEC. 2. MORTGAGE PROTECTION FOR MEMBERS OF THE 

2 ARMED FORCES, SURVIVING SPOUSES, AND 

3 CERTAIN VETERANS. 

4 (a) MEMBERS OF THE ARMED FORCES, SURVIVING

5 SPOUSES, AND CERTAIN DISABLED VETERANS.— 

6 (1) IN GENERAL.—Title III of the 

7 Servicemembers Civil Relief Act (50 U.S.C. App. 

8 501 et seq.) is amended by inserting after section 

9 303 the following new section: 

10 ‘‘SEC. 303A. MORTGAGES AND TRUST DEEDS OF CERTAIN 

11 SERVICEMEMBERS, SURVIVING SPOUSES, 

12 AND DISABLED VETERANS. 

13 ‘‘(a) MORTGAGE AS SECURITY.—This section applies 

14 only to an obligation on real or personal property owned 

15 by a covered individual that— 

16 ‘‘(1) originated at any time and for which the 

17 covered individual is still obligated; and 

18 ‘‘(2) is secured by a mortgage, trust deed, or 

19 other security in the nature of a mortgage. 

20 ‘‘(b) STAY OF PROCEEDINGS.— 

21 ‘‘(1) IN GENERAL.—In accordance with sub22 section (d)(1), in a judicial action pending or in a 

23 nonjudicial action commenced during a covered time 

24 period to enforce an obligation described in sub25 section (a), a court— 


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1 ‘‘(A) may, after a hearing and on its own 

2 motion, stay the proceedings until the end of 

3 the covered time period; and 

4 ‘‘(B) shall, upon application by a covered 

5 individual, stay the proceedings until the end of 

6 the covered time period. 

7 ‘‘(2) OBLIGATION TO STOP PROCEEDINGS.— 

8 Upon receipt of notice provided under subsection 

9 (d)(1), a mortgagee, trustee, or other creditor seek10 ing to foreclose on real property secured by an obli11 gation covered by this section using any judicial or 

12 nonjudicial proceedings shall immediately stop any 

13 such proceeding until the end of the covered time pe14 riod. 

15 ‘‘(c) SALE OR FORECLOSURE.—A sale, judicial or 

16 nonjudicial foreclosure, or seizure of property for a breach 

17 of an obligation described in subsection (a) that is not 

18 stayed under subsection (b) shall not be valid during a 

19 covered time period except— 

20 ‘‘(1) upon a court order granted before such 

21 sale, judicial or nonjudicial foreclosure, or seizure 

22 with a return made and approved by the court; or 

23 ‘‘(2) if made pursuant to an agreement as pro24 vided in section 107. 

25 ‘‘(d) NOTICE REQUIRED.— 


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1 ‘‘(1) IN GENERAL.—To be covered under this 

2 section, a covered individual shall provide to the 

3 mortgagee, trustee, or other creditor written notice 

4 that such individual is so covered. 

5 ‘‘(2) MANNER.—Written notice under para6 graph (1) may be provided electronically. 

7 ‘‘(3) TIME.—Notice provided under paragraph 

8 (1) shall be provided during the covered time period. 

9 ‘‘(4) CONTENTS.—With respect to a service10 member described in subsection (g)(1)(A), notice 

11 shall include— 

12 ‘‘(A) a copy of the servicemember’s official 

13 military orders, or any notification, certifi14 cation, or verification from a servicemember’s 

15 commanding officer that provides evidence of 

16 servicemember’s eligibility for special pay as de17 scribed in subsection (g)(1)(A); or 

18 ‘‘(B) an official notice using a form de19 signed under paragraph (5). 

20 ‘‘(5) OFFICIAL FORMS.— 

21 ‘‘(A) IN GENERAL.—The Secretary of De22 fense shall design and distribute an official De23 partment of Defense form that can be used by 

24 an individual to give notice under paragraph 

25 (1). 


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1 ‘‘(B) USE OF OFFICIAL FORM NOT RE2 QUIRED.—Failure by any individual to use a 

3 form designed or distributed under subpara4 graph (A) to provide notice shall not make such 

5 provision of notice invalid. 

6 ‘‘(e) AGGREGATE DURATION.—The aggregate dura7 tion for which a covered individual (except a servicemem8 ber described in subsection (g)(1)(A)) may be covered 

9 under this section is one year. 

10 ‘‘(f) MISDEMEANOR.—A person who knowingly 

11 makes or causes to be made a sale, foreclosure, or seizure 

12 of property that is prohibited by subsection (c), or who 

13 knowingly attempts to do so, shall be fined as provided 

14 in title 18, United States Code, or imprisoned for not more 

15 than one year, or both. 

16 ‘‘(g) DEFINITIONS.—In this section: 

17 ‘‘(1) COVERED INDIVIDUAL.—The term ‘cov18 ered individual’ means the following individuals: 

19 ‘‘(A) A servicemember who is or was eligi20 ble for hostile fire or imminent danger special 

21 pay under section 310 of title 37, United States 

22 Code, during a period of military service. 

23 ‘‘(B) A servicemember placed on convales24 cent status, including a servicemember trans25 ferred to the temporary disability retired list 


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1 under section 1202 or 1205 of title 10, United 

2 States Code. 

3 ‘‘(C) A veteran who was medically dis4 charged and retired under chapter 61 of title 

5 10, United States Code, except for a veteran 

6 described in section 1207 of such title. 

7 ‘‘(D) A surviving spouse (as defined in sec8 tion 101(3) of title 38, United States Code, and 

9 in accordance with section 103 of such title) of 

10 a servicemember who died while in military 

11 service if such spouse is the successor in inter12 est to property covered under subsection (a). 

13 ‘‘(2) COVERED TIME PERIOD.—The term ‘cov14 ered time period’ means the following time periods: 

15 ‘‘(A) With respect to a servicemember who 

16 is or was eligible for hostile fire or imminent 

17 danger special pay under section 310 of title 

18 37, United States Code, during a period of mili19 tary service, during the period beginning on the 

20 first day on which the servicemember is or was 

21 eligible for such special pay during such period 

22 of military service and ending on the date that 

23 is one year after the last day of such period of 

24 military service. 


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1 ‘‘(B) With respect to a servicemember de2 scribed in paragraph (1)(B), during the one3 year period beginning on the date on which the 

4 servicemember is placed on convalescent status 

5 or transferred to the temporary disability re6 tired list under section 1202 or 1205 of title 

7 10, United States Code. 

8 ‘‘(C) With respect to a veteran described in 

9 paragraph (1)(C), during the one-year period 

10 beginning on the date of the retirement of such 

11 veteran. 

12 ‘‘(D) With respect to a surviving spouse of 

13 a servicemember as described in paragraph 

14 (1)(D), during the one-year period beginning on 

15 the date on which the spouse receives notice of 

16 the death of the servicemember.’’. 

17 (2) CLERICAL AMENDMENT.—The table of con18 tents in section 1(b) of such Act is amended by in19 serting after the item relating to section 303 the fol20 lowing new item: 

‘‘Sec. 303A. Mortgages and trust deeds of certain servicemembers, surviving 

spouses, and disabled veterans.’’. 

21 (3) CONFORMING AMENDMENT.—Section 107 

22 of the Servicemembers Civil Relief Act (50 U.S.C. 

23 App. 517) is amended by adding at the end the fol24 lowing: 


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1 ‘‘(e) OTHER INDIVIDUALS.—For purposes of this sec2 tion, the term ‘servicemember’ includes any covered indi3 vidual under section 303A.’’. 

4 (b) INCREASED CIVIL PENALTIES FOR MORTGAGE

5 VIOLATIONS.—Paragraph (3) of section 801(b) of the 

6 Servicemembers Civil Relief Act (50 U.S.C. App. 

7 597(b)(3)) is amended to read as follows: 

8 ‘‘(3) to vindicate the public interest, assess a 

9 civil penalty— 

10 ‘‘(A) with respect to a violation of section 

11 207, 303, or 303A regarding real property— 

12 ‘‘(i) in an amount not exceeding 

13 $110,000 for a first violation; and 

14 ‘‘(ii) in an amount not exceeding 

15 $220,000 for any subsequent violation; and 

16 ‘‘(B) with respect to any other violation of 

17 this Act— 

18 ‘‘(i) in an amount not exceeding 

19 $55,000 for a first violation; and 

20 ‘‘(ii) in an amount not exceeding 

21 $110,000 for any subsequent violation.’’. 

22 (c) CREDIT DISCRIMINATION.—Section 108 of such 

23 Act (50 U.S.C. App. 518) is amended— 


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1 (1) by striking ‘‘Application by’’ and inserting 

2 ‘‘(a) APPLICATION OR RECEIPT.—Application by’’; 

3 and 

4 (2) by adding at the end the following new sub5 section: 

6 ‘‘(b) ELIGIBILITY.—In addition to the protections 

7 under subsection (a), an individual who is entitled to any 

8 right or protection provided under this Act may not be 

9 denied or refused credit or be subject to any other action 

10 described under paragraphs (1) through (6) of subsection 

11 (a) solely by reason of such entitlement.’’. 

12 (d) EFFECTIVE DATE.—Section 303A of the 

13 Servicemembers Civil Relief Act, as added by subsection 

14 (a), and the amendments made by this section, shall take 

15 effect on the date that is 90 days after the date of the 

16 enactment of this Act. 

17 SEC. 3. TREATMENT OF RELOCATION FOR ACTIVE DUTY 

18 FOR PURPOSES OF MORTGAGE REFI19 NANCING. 

20 (a) IN GENERAL.—Title III of the Servicemembers 

21 Civil Relief Act (50 U.S.C. App. 531 et seq.) is amended 

22 by inserting after section 303A, as added by section 

23 1(a)(1), the following new section: 


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1 ‘‘SEC. 303B. TREATMENT OF RELOCATION FOR ACTIVE 

2 DUTY FOR PURPOSES OF MORTGAGE REFI3 NANCING. 

4 ‘‘(a) TREATMENT OF ABSENCE FROM RESIDENCE

5 DUE TO ACTIVE DUTY.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

7 if, at any time that a servicemember who is the 

8 mortgagor under an existing mortgage does not re9 side in the residence that secures the existing mort10 gage because of relocation described in subsection 

11 (c)(1)(B), such servicemember inquires about or ap12 plies for a covered refinancing mortgage, such serv13 icemember shall be, for all purposes relating to the 

14 covered refinancing mortgage, including such inquiry 

15 or application and eligibility for and compliance with 

16 any underwriting criteria and standards regarding 

17 such covered refinancing mortgage, considered to oc18 cupy the residence that secures the existing mort19 gage to be paid or prepaid by such covered refi20 nancing mortgage as the principal residence of the 

21 servicemember during the period of any such reloca22 tion. 

23 ‘‘(2) LIMITATION.—Paragraph (1) shall not 

24 apply with respect to a servicemember at any time 

25 if, during the five-year period preceding such time, 


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1 the servicemember entered into a covered refi2 nancing mortgage pursuant to this section. 

3 ‘‘(b) MORTGAGES ORIGINATED BEFORE PERIOD

4 MILITARY SERVICE.—If a covered refinancing mortgage 

5 is entered into pursuant to this section with respect to 

6 an existing mortgage that originated before the period of 

7 the servicemember’s military service, such covered refi8 nancing mortgage shall be deemed to be an obligation that 

9 originated before the period of the servicemember’s mili10 tary service and for which the servicemember is still obli11 gated for purposes of section 303(a)(1). 

12 ‘‘(c) DEFINITIONS.—In this section: 

13 ‘‘(1) EXISTING MORTGAGE.—The term ‘existing 

14 mortgage’ means a mortgage that is secured by a 1- 

15 to 4-family residence, including a condominium or a 

16 share in a cooperative ownership housing associa17 tion, that was the principal residence of a service18 member for a period that— 

19 ‘‘(A) had a duration of 13 consecutive 

20 months or longer; and 

21 ‘‘(B) ended upon the relocation of the serv22 icemember caused by the servicemember receiv23 ing military orders for a permanent change of 

24 station or to deploy with a military unit, or as 

25 an individual in support of a military operation, 


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1 for a period of not less than 90 days that did 

2 not allow the servicemember to continue to oc3 cupy such residence as a principal residence. 

4 ‘‘(2) COVERED REFINANCING MORTGAGE.—The 

5 term ‘covered refinancing mortgage’ means any 

6 mortgage— 

7 ‘‘(A) that is made for the purpose of pay8 ing or prepaying, and extinguishing, the out9 standing obligations under an existing mortgage 

10 or mortgages; and 

11 ‘‘(B) that is secured by the same residence 

12 that secured such existing mortgage or mort13 gages.’’. 

14 (b) CLERICAL AMENDMENT.—The table of contents 

15 for such Act is amended by inserting after the item relat16 ing to section 303A the following new item: 

‘‘Sec. 303B. Treatment of relocation for active duty for purposes of mortgage 

refinancing.’’. 

17 SEC. 4. REQUIREMENTS FOR LENDING INSTITUTIONS THAT 

18 ARE CREDITORS FOR OBLIGATIONS AND LI19 ABILITIES COVERED BY THE SERVICEMEM20 BERS CIVIL RELIEF ACT. 

21 Section 207 of the Servicemembers Civil Relief Act 

22 (50 U.S.C. App. 527) is amended— 

23 (1) by redesignating subsections (d) and (e) as 

24 subsections (e) and (f), respectively; and 


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1 (2) by inserting after subsection (c) the fol2 lowing new subsection (d): 

3 ‘‘(d) LENDING INSTITUTION REQUIREMENTS.— 

4 ‘‘(1) COMPLIANCE OFFICERS.—Each lending in5 stitution subject to the requirements of this section 

6 shall designate an employee of the institution as a 

7 compliance officer who is responsible for ensuring 

8 the institution’s compliance with this section and for 

9 distributing information to servicemembers whose 

10 obligations and liabilities are covered by this section. 

11 ‘‘(2) TOLL-FREE TELEPHONE NUMBER.—Dur12 ing any fiscal year, a lending institution subject to 

13 the requirements of this section that had annual as14 sets for the preceding fiscal year of $10,000,000,000 

15 or more shall maintain a toll-free telephone number 

16 and shall make such telephone number available on 

17 the primary Internet website of the institution.’’. 

Æ 


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