Monday, August 4, 2008

Servicemember Homeownership Protections in Housing Bill

Several improvements in homeownership protection for servicemembers were included in the Fanne Mae/Freddy Mac Bailout Bill (HR 3221)

As summarized on

H.R. 3221: Foreclosure Prevention Act of 2008

Title II - Mortgage Foreclosure Protections for Servicemembers

Section 201 -
Sets forth a temporary increase, through December 31, 2008, in the maximum loan guaranty amount for certain housing loans guaranteed by the Secretary of Veterans' Affairs.
Section 202 -
Directs the Secretary of Defense to develop and implement a program to advise members of the Armed Forces who are returning from active duty abroad on actions to prevent or forestall mortgage foreclosures, including credit counseling and home mortgage counseling.
Section 203 -
Amends the Servicemembers Civil Relief Act to increase from 90 days to nine months the period of: (1) protection against mortgage foreclosure proceedings; and (2) the stay of proceedings and adjustment of mortgage obligations. Sunsets such provisions December 31, 2010.
Revises the 6% interest rate limitation during the period of military service for debts incurred before military service whose interest rate did not exceed that percentage. Extends the 6% limitation for one year beyond the period of military service if the debt is a mortgage, trust deed, or other security in the nature of a mortgage.

More information:

Thanks to the Iraq And Afghanistan Veterans of America blog for the head's up!

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