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#2061958 - 02/02/16 09:31 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
John Burnett Online
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For whatever it's worth, I have gone into the BOL Regulations pages for the SCRA and hidden the editor's notes about the replacement of 90 days and 9 months and all that and put the regulation back to the old 90-day version. If Congress gets back from the distractions of the lunatic election campaign and decides to reinstate the temporary rules, I can easily "unhide" the text and make it one year -- or seven months and 23 days, if Congress is so moved -- again.
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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2062052 - 02/03/16 03:11 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
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Thanks John. I love the lack of government during election campaigns. smile
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#2062064 - 02/03/16 03:33 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
John Burnett Online
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Without trying to get into politics, there are a few times you want government to be there, governing. And there are times when you wish they weren't.
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#2062066 - 02/03/16 03:35 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
JWills, CRCM Offline
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Very true. Thanks again!
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#2062247 - 02/03/16 08:57 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
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#2062436 - 02/04/16 04:43 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
Here4Life Offline
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Did the extension of the interest rate reduction also revert back to 90 days after the end of military service?

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#2062503 - 02/04/16 07:24 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
John Burnett Online
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No. That change was made by section 2203(b) of the Housing and Economic Recovery Act of 2008, and there's no sunset date on it.
Last edited by John Burnett; 02/04/16 07:32 PM.
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#2062516 - 02/04/16 07:55 PM Re: Expiration of the one year Stay on Foreclosure Etc John Burnett
Here4Life Offline
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After doing more research after I posted my question, I read a footnote in the FDIC Compliance Exam Manual that states, "The extension of the interest rate reduction for mortgages for an additional one-year period after the end of military service was added by section 2203(b) of Housing and Economic Recovery Act of 2008 (HERA), which was signed into law on July 30, 2008. Although these additional protections were scheduled to expire, Congress has repeatedly extended them (most recently on Dec. 18, 2014). Unless further extended, these additional protections will expire on December 31, 2015."

So then I researched SCRA prior to HERA & found that the reduction of the interest rate only applied for actual periods of active duty.

So now I'm confused, do we leave the 1 year extension or does it revert back to only during the time of active duty?

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#2063001 - 02/08/16 04:33 PM Re: Expiration of the one year Stay on Foreclosure Etc John Burnett
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Our LOS system which prints out the SCRA notice for us has changed the foreclosure section of the SCRA notice back to 90 days awaiting the gov't doing something. However we have seen that they have also changed the prior section.......

What Legal Protections are Servicemembers Entitled to Under the SCRA?
The SCRA states that a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above 6% during the period of military service [i][color:#FF0000]and one year thereafter, in the case of an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage, or obligation or liability.

The part of this section in red and italicized has been removed along with the change back to 90 days. Is this correct?
Last edited by drpackrat; 02/08/16 04:33 PM.
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#2063006 - 02/08/16 04:35 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
drpackrat Offline
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since my computer wont italicize or color my entry right.....the part taken out starts at "and one year thereafter......" all the way to the end of the sentence.

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#2064625 - 02/17/16 04:50 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
JWills, CRCM Offline
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I would assume so as it has not been extended. I am working on updating policies and I was hoping it would be done by now.
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#2064634 - 02/17/16 05:56 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
Tesla Offline
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Yes, I too am thinking of giving up on Congress and making the changes. frown
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#2064652 - 02/17/16 06:37 PM Re: Expiration of the one year Stay on Foreclosure Etc drpackrat
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Originally Posted By drpackrat
[color:#FF0000]Our LOS system which prints out the SCRA notice for us has changed the foreclosure section of the SCRA notice back to 90 days awaiting the gov't doing something. However we have seen that they have also changed the prior section.......

What Legal Protections are Servicemembers Entitled to Under the SCRA?
The SCRA states that a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above 6% during the period of military service and one year thereafter, in the case of an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage, or obligation or liability.
The part of this section italicized has been removed along with the change back to 90 days. Is this correct?


No. That was a permanent addition to the SCRA, not a temporary one.
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#2064654 - 02/17/16 06:48 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
John Burnett Online
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The change to §527(a)(1) -- now cited as 50 U.S.C. 3937(a)(1) -- was a permanent change. The changes to § 3953(b) and (c) were temporary, and have reverted to the original "90 day" wording.
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#2065136 - 02/19/16 09:39 PM Re: Expiration of the one year Stay on Foreclosure Etc Here4Life
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Originally Posted By Here4Life
After doing more research after I posted my question, I read a footnote in the FDIC Compliance Exam Manual that states, "The extension of the interest rate reduction for mortgages for an additional one-year period after the end of military service was added by section 2203(b) of Housing and Economic Recovery Act of 2008 (HERA), which was signed into law on July 30, 2008. Although these additional protections were scheduled to expire, Congress has repeatedly extended them (most recently on Dec. 18, 2014). Unless further extended, these additional protections will expire on December 31, 2015."

So then I researched SCRA prior to HERA & found that the reduction of the interest rate only applied for actual periods of active duty.

So now I'm confused, do we leave the 1 year extension or does it revert back to only during the time of active duty?


To start with, FDIC got it wrong. It's correct that the rate reduction was made applicable for the duration of military service plus one year for mortgage debt by section 2203(b) of HERA. However, that section of HERA does not sunset. Section 2203(a), which changed the "90 days" in sections 533(b) and (c) of the SCRA, has a sunset, which, after some tweaks and extension, finally arrived on 12/31/15.

The one-year language in section 527(a)(1) of SCRA - now cited as 50 U.S.C. 3937(a)(1) -- is permanent (unless Congress changes the law, of course).
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#2065138 - 02/19/16 09:52 PM Re: Expiration of the one year Stay on Foreclosure Etc Tesla
John Burnett Online
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And sections 533(b) and (c) -- 50 U.S.C. 3953(b) and (c) -- have reverted back to "90 days."

We have all of the SCRA sections in our Regulations pages, sporting their new section numbers, and with their current wording. Check them out at https://www.bankersonline.com/regulations/scra
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