Military Family Home Protection Act

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. Short title This Act may be cited as the Military Family Home Protection Act 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: 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 (A) A servicemember who is or was eligible for hostile fire or imminent danger special pay under section 310 (B) A servicemember placed on convalescent status, including a servicemember transferred to the temporary disability retired list under section 1202 1205 (C) A veteran who was medically discharged and retired under chapter 61 (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 (A) With respect to a servicemember who is or was eligible for hostile fire or imminent danger special pay under section 310 (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 1205 (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 (e) Other individuals For purposes of this section, the term servicemember . (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) (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 (1) by striking Application by (a) Application or receipt (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. 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: 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 (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 (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. . 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 (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. .

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.