II 

112TH CONGRESS 

2D SESSION S. 3323 

To amend the Servicemembers Civil Relief Act to improve the protections 

for servicemembers against mortgage foreclosures, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 20, 2012 

Mr. ROCKEFELLER (for himself and Mr. CARDIN) introduced the following 

bill; which was read twice and referred to the Committee on Veterans’ Affairs 

A BILL 

To amend the Servicemembers Civil Relief Act to improve 

the protections for servicemembers 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’’. 

6 SEC. 2. MORTGAGE PROTECTION FOR MEMBERS OF THE 

7 ARMED FORCES, SURVIVING SPOUSES, AND 

8 CERTAIN VETERANS. 

9 (a) MORTGAGE PROTECTION.— 


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1 (1) IN GENERAL.—Section 303 of the 

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

3 533) is amended to read as follows: 

4 ‘‘SEC. 303. MORTGAGES AND TRUST DEEDS. 

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

6 only to an obligation on real or personal property that is 

7 secured by a mortgage, trust deed, or other security in 

8 the nature of a mortgage and is owned by a covered indi9 vidual as follows: 

10 ‘‘(1) With respect to an obligation on real or 

11 personal property owned by a servicemember, such 

12 obligation that originated before the period of the 

13 servicemember’s military service and for which the 

14 servicemember is still obligated. 

15 ‘‘(2) With respect to an obligation on real prop16 erty owned by a servicemember serving in support of 

17 a contingency operation (as defined in section 

18 101(a)(13) of title 10, United States Code), such ob19 ligation that originated at any time and for which 

20 the servicemember is still obligated. 

21 ‘‘(3) With respect to an obligation on real prop22 erty owned by a veteran described in subsection 

23 (f)(1)(B), such obligation that originated at any 

24 time and for which the veteran is still obligated. 


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1 ‘‘(4) With respect to an obligation on real prop2 erty owned by a surviving spouse described in sub3 section (f)(1)(C), such obligation that originated at 

4 any time and for which the spouse is still obligated. 

5 ‘‘(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF

6 OBLIGATION.—(1) In an action filed during a covered 

7 time period to enforce an obligation described in sub8 section (a), the court may after a hearing and on its own 

9 motion and shall upon application by a covered individual 

10 when the individual’s ability to comply with the obligation 

11 is materially affected by military service— 

12 ‘‘(A) stay the proceedings for a period of time 

13 as justice and equity require; or 

14 ‘‘(B) adjust the obligation to preserve the inter15 ests of all parties. 

16 ‘‘(2) For purposes of applying paragraph (1) to a cov17 ered individual who is a surviving spouse of a servicemem18 ber described in subsection (f)(1)(C), the term ‘military 

19 service’ means the service of such servicemember. 

20 ‘‘(c) SALE OR FORECLOSURE.—A sale, foreclosure, or 

21 seizure of property for a breach of an obligation described 

22 in subsection (a) shall not be valid during a covered time 

23 period except— 


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

2 sale, foreclosure, or seizure with a return made and 

3 approved by the court; or 

4 ‘‘(2) if made pursuant to an agreement as pro5 vided in section 107. 

6 ‘‘(d) MISDEMEANOR.—A person who knowingly 

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

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

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

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

11 than one year, or both. 

12 ‘‘(e) PROOF OF SERVICE.—(1) A veteran described 

13 in subsection (f)(1)(B) shall provide documentation de14 scribed in paragraph (2) to relevant persons to prove the 

15 eligibility of the veteran to be covered under this section. 

16 ‘‘(2) Documentation described in this paragraph is a 

17 rating decision or a letter from the Department of Vet18 erans Affairs that confirms that the veteran is totally dis19 abled because of one or more service-connected injuries or 

20 service-connected disability conditions. 

21 ‘‘(f) DEFINITIONS.—In this section: 

22 ‘‘(1) The term ‘covered individual’ means the 

23 following individuals: 

24 ‘‘(A) A servicemember. 


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1 ‘‘(B) A veteran who was retired under 

2 chapter 61 of title 10, United States Code, and 

3 whom the Secretary of Veterans Affairs, at the 

4 time of such retirement, determines is a totally 

5 disabled veteran. 

6 ‘‘(C) A surviving spouse of a servicemem7 ber who— 

8 ‘‘(i) died while serving in support of a 

9 contingency operation if such spouse is the 

10 successor in interest to property covered 

11 under subsection (a); or 

12 ‘‘(ii) died while in military service and 

13 whose death is service-connected if such 

14 spouse is the successor in interest to prop15 erty covered under subsection (a). 

16 ‘‘(2) The term ‘covered time period’ means the 

17 following time periods: 

18 ‘‘(A) With respect to a servicemember, 

19 during the period beginning on the date on 

20 which such servicemember begins military serv21 ice and ending on the date that is 12 months 

22 after the date on which such servicemember is 

23 discharged from such service. 

24 ‘‘(B) With respect to a servicemember 

25 serving in support of a contingency operation, 


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1 during the period beginning on the date of the 

2 military orders for such service and ending on 

3 the date that is 12 months after the date on 

4 which such servicemember redeploys from such 

5 contingency operation. 

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

7 subsection (f)(1)(B), during the 12-month pe8 riod beginning on the date of the retirement of 

9 such veteran described in such subsection. 

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

11 a servicemember described in subsection 

12 (f)(1)(C), during the 12-month period begin13 ning on the date of the death of the service14 member.’’. 

15 (2) CONFORMING AMENDMENT.—Section 107 

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

17 App. 517) is amended by adding at the end the fol18 lowing: 

19 ‘‘(e) OTHER INDIVIDUALS.—For purposes of this sec20 tion, the term ‘servicemember’ includes any covered indi21 vidual under section 303(f)(1).’’. 

22 (3) REPEAL OF SUNSET.—Subsection (c) of 

23 section 2203 of the Housing and Economic Recovery 

24 Act of 2008 (Public Law 110–289; 50 U.S.C. App. 

25 533 note) is amended to read as follows: 


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1 ‘‘(c) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall take effect on the date of the enact3 ment of this Act.’’. 

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 

11 303 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— 

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

25 ‘‘(a) Application by’’; and 


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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(b) In addition to the protections under subsection 

4 (a), an individual who is eligible, or who may likely become 

5 eligible, for any provision of this Act may not be denied 

6 or refused credit or be subject to any other action de7 scribed under paragraphs (1) through (6) of subsection 

8 (a) solely by reason of such eligibility.’’. 

9 SEC. 3. REQUIREMENTS FOR LENDING INSTITUTIONS THAT 

10 ARE CREDITORS FOR OBLIGATIONS AND LI11 ABILITIES COVERED BY THE 

12 SERVICEMEMBERS CIVIL RELIEF ACT. 

13 Section 207 of the Servicemembers Civil Relief Act 

14 (50 U.S.C. App. 527) is amended— 

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

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

17 (2) by inserting after subsection (c) the fol18 lowing new subsection (d): 

19 ‘‘(d) LENDING INSTITUTION REQUIREMENTS.— 

20 ‘‘(1) COMPLIANCE OFFICERS.—Each lending in21 stitution subject to the requirements of this section 

22 shall designate an employee of the institution as a 

23 compliance officer who is responsible for ensuring 

24 the institution’s compliance with this section and for 


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1 distributing information to servicemembers whose 

2 obligations and liabilities are covered by this section. 

3 ‘‘(2) TOLL-FREE TELEPHONE NUMBER.—Dur4 ing any fiscal year, a lending institution subject to 

5 the requirements of this section that had annual as6 sets for the preceding fiscal year of $10,000,000,000 

7 or more shall maintain a toll-free telephone number 

8 and shall make such telephone number available on 

9 the primary Internet Web site of the institution.’’. 

Æ 


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