Board of Governors of the Federal Reserve System

Consumer Financial Protection Bureau 

Federal Deposit Insurance Corporation 

National Credit Union Administration 

Office of the Comptroller of the Currency 

Interagency Guidance on Mortgage Servicing Practices Concerning 

Military Homeowners with Permanent Change of Station Orders

The Board of Governors of the Federal Reserve System, the Consumer Financial Protection 

Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, 

and the Office of the Comptroller of the Currency (“the Agencies”) are issuing this guidance to 

mortgage servicers as part of their supervisory programs. This guidance is being issued to 

address mortgage servicer practices that may pose risks to homeowners who are serving in the 

military and to ensure compliance with applicable consumer laws and regulations. Specifically, 

this guidance addresses risks related to military homeowners who have informed the servicer that 

they have received military Permanent Change of Station (PCS) orders (hereafter, “homeowners 

with PCS orders”). 

For military homeowners, PCS orders to move to a new duty station present unique challenges. 

Although PCS orders are non-negotiable and operate under short, strict timelines, homeowners 

with PCS orders remain obligated to honor their financial obligations, including their mortgages. 

If their homes have declined in value, they may be unable to sell the home and obtain sufficient 

funds to pay off the mortgage debt and may continue to be obligated to make monthly payments 

after relocating to the new duty station.

The Agencies have particular concerns about the following practices which have the potential to 

mislead or otherwise cause harm to homeowners with PCS orders: 

• Failing to provide homeowners with PCS orders who notify their servicers of such orders 

with accurate, clear, and readily understandable information about available assistance 

options for which the homeowner may qualify based on the information known to the 

mortgage servicer. The options should be consistent with the servicer’s public 

representations and agreements with government agencies and others regarding the 

servicer’s intent to offer such assistance to all qualified homeowners. These options 

include the Making Home Affordable Program and programs offered by or through 

Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), the Department of 

Veterans Affairs (VA), and the Department of Agriculture-Rural Development (USDARD).

1

 

 

1 This guidance does not obligate servicers to offer any particular loss mitigation programs.
• Asking homeowners with PCS orders to waive their legal rights under the 

Servicemembers Civil Relief Act (SCRA)2 or any other law as a prerequisite to the 

mortgage servicer either providing information to the homeowner about available options 

or evaluating the homeowner’s eligibility for assistance. 

• Advising homeowners with PCS orders who are current on their loans and able to make 

the monthly payment to intentionally skip making payments in order to create the 

appearance that they are having financial difficulties in order to obtain assistance for 

which they would not otherwise qualify. Providing accurate, factual information to a 

homeowner about available loss mitigation programs for delinquent homeowners is not a 

practice that raises this concern.

• Failing to provide a reasonable means for homeowners with PCS orders to obtain 

information on the status of their request for assistance. 

• Failing to timely communicate the servicer’s decision regarding requests for assistance 

from homeowners with PCS orders and failing to include an explanation of the reason for 

the denial, where required, so that the homeowner has an opportunity to address any 

deficiencies, if applicable. Timeliness will be judged on all of the facts and 

circumstances.

Mortgage servicers should ensure that their employees are adequately trained about the options 

available for homeowners with PCS orders. Information provided to homeowners with PCS 

orders regarding any available assistance options, such as the Making Home Affordable Program 

and other programs offered by or through Fannie Mae, Freddie Mac, the FHA, the VA, and the 

USDA-RD, should be accurate and readily understandable. The Agencies expect the institutions 

they supervise will maintain mortgage servicing policies and procedures appropriate to achieve 

these objectives, commensurate with the institution’s customer base and the size and the 

complexity of its operations. 

If the Agencies determine that a servicer has engaged in any acts or practices that are unfair, 

deceptive, or abusive, or that otherwise violate Federal consumer financial laws and regulations, 

the agencies will take appropriate supervisory and enforcement actions to address violations that 

harm consumers and seek all appropriate corrective actions, including requiring the mortgage 

servicer to strengthen its programs and processes. 

 

2 50 U.S.C. app. §§ 501-597b. Among the protections under SCRA are restrictions on foreclosures of 

servicemembers’ property securing pre-military-service mortgages for which the servicemember is still o

while the servicemember is in “military service,” as that term is defined in § 511(2), or within nine month

thereafter. The period of nine months will revert to 90 days after December 31, 2012. 

bligate

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