Agencies Set Mortgage-Servicing Rules for Military Members

On June 21st, 2012 the Consumer Financial Protection Bureau (CFPB), Federal Reserve, Federal Deposit Insurance Corp., National Credit Union Administration and The Office of the Comptroller of the Currency issued that mortgage servicers to provide servicemembers with guidance about information that they need to sell their homes.  This guidance also extends to modifying their loans when they must relocate.  For additional information click here for the press release.

The goal here is to provide the servicemembers who are receiving permanent change in station orders are obtaining “Clear, accurate, and timely information about available options such as loan modification or short sale,” declared the CFPB director, Richard Cordray.

According to the CFPB, approximately one-third of active duty servicemembers get these orders each year and the Department of Defense figures about 180,000 members of the military are homeowners.

The guidance also addresses two specific practices: asking servicemembers to waive their rights under the servicemembers Civil Relief Act as a condition for assistance or skip mortgage payments to become eligible for assistance.

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