Making Sure Soldiers Have Homes for the Holidays
by Henry Meier
The Office of Comptroller of the Currency released a memo yesterday providing banks a reminder and brief overview of amendments made to the Soldiers And Sailors Civil Relief Act that become effective on February 2, 2013. The legislation provides that a sale, foreclosure, or seizure of property based on a soldier’s delinquency is not valid if made during the period of military service or within one year thereafter, unless it is made pursuant to a court order or a waiver by the service member. In addition, the court may order a hearing. The law currently extends the injunction to the first nine months after the service member returns from active duty. Your compliance officer might want to set up a reminder that the new law only remains in effect until December 31, 2014, at which point the injunction only extends to the first 90 days after a service person returns from active duty. I’m not sure why, but the SCRA has been a source of confusion in credit union land. Just remember that the purpose of the law is not to prevent soldiers from having to pay their debts, but simply to ensure that they are not put in a worse position financially because of their service. That’s why the law’s protections generally apply only to loans and mortgages that soldiers enter into prior to active duty.
Incidentally, “I’ll be home for Christmas” was released by Bing Crosby in 1943 and was a top ten hit as many Americans were spending their first Christmas away from the family to fight in World War II. This song came to mind because my office is piping in music from one of those stations playing nonstop Christmas music since July 4. I exaggerate slightly but I wish the CFPB would utilize some of its dictatorial powers to do what is best for the American consumer and ban all Christmas music before Thanksgiving Day and only allow the playing of nonstop Christmas music within a week of Christmas.