The HUD SCRA notice is about helping servicemembers save their homes. This was the first part of the HUD Mortgagee Letter 2006-28 on this:
This Mortgagee Letter provides information regarding a new legal requirement to notify homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents under the Servicemembers Civil Relief Act (SCRA). It also provides guidance regarding the implementation of SCRA requirements in servicing FHA-insured mortgages. This guidance supersedes prior Mortgagee letters ML 2003-04, Soldiers’ and Sailors’ Civil Relief Act and ML 01-22, The Effect of the Soldiers’ and Sailors’ Civil Relief Act of 1940 on FHA Insured Mortgages. However, the guidance provided in ML 91-20, Effect of the Soldiers’ and Sailors’ Civil Relief Act of 1940 on FHA Insured Mortgages remains valid with respect to the calculation of Section 235 subsidy.
Section 688 of the National Defense Authorization Act for Fiscal Year 2006 (public law
109-163, enacted January 6, 2006) amended the required content of notifications of homeownership counseling availability under section 106(c)(5)(A)(ii) of the Housing and Urban Development Act (12 U.S.C. 1701x(c)(5)(A)(ii)) and directed HUD to develop and disseminate a format for the required notice.
Servicemembers Civil Relief Act Notice
Pursuant to the statutory amendment, HUD has developed, in consultation with the Departments of Defense and Treasury, the form for the required notice of servicemember rights (Attachment 1). All mortgage loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement that became effective June 5, 2006. The notice must:
• Be sent to all homeowners who are in default on a residential mortgage;
• Include the toll-free Military OneSource number to call if servicemembers or their dependents require further assistance (1-800-342-9647); and
• Be made within 45 days from the date a missed payment was due, unless the homeowner pays the overdue amount before the expiration of the 45-day period.
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AndyZ CRCM
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