Written by Steve Van Beek
On the Tuesday after Memorial Day, I thought it was fitting to discuss some movement on Capitol Hill regarding proposed extensions to the Servicemembers Civil Relief Act (SCRA).
As reported in the NAFCU Today, the House passed an Amendment offered by Elijah Cummings (D-MD) to the 2013 National Defense Authorization Act (which also passed the House in recent weeks). The Amendment would provide additional protections to servicemembers. The additional protections include:
- Extending post-service mortgage protection from nine months to 12 months;
- Extending certain SCRA protections to surviving spouses;
- Extending SCRA protections to all totally disabled veterans leaving the military;
- Requiring each financial institution - including credit unions - to designate a SCRA compliance officer; and
- Requiring institutions over $10 billion in assets to maintain a toll-free number for SCRA issues.
A similar bill was introduced in the Senate. It is expected that the Senate will take up its own 2013 National Defense Authorization Act - which it will need to pass and then the House and Senate bills will be reconciled in conference committee.
For the SCRA issues, keep an eye out as these changes come from Congress directly rather than the regulators. If these bills pass (in one form or another), we'll be sure to provide additional information.