[House Report 112-234]
[From the U.S. Government Publishing Office]


112th Congress  }                                            {   Report
  1st Session   }     HOUSE OF REPRESENTATIVES               {  112-234

=======================================================================

 
   AMENDING THE SERVICEMEMBERS CIVIL RELIEF ACT TO PROVIDE SURVIVING 
  SPOUSES WITH CERTAIN PROTECTIONS RELATING TO MORTGAGES AND MORTGAGE 
                              FORECLOSURES 

                                _______
                                

October 5, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Miller of Florida, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1263]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 1263) to amend the Servicemembers Civil Relief 
Act to provide surviving spouses with certain protections 
relating to mortgages and mortgage foreclosures, having 
considered the same, report favorably thereon with amendments 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Hearings.........................................................     5
Subcommittee Consideration.......................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     6
Statement of General Performance Goals and Objectives............     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Earmarks and Tax and Tariff Benefits.............................     6
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     8
Statement of Constitutional Authority............................     8
Applicability to Legislative Branch..............................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill as Reported.............     9
    The amendments are as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. EXPANSION OF PROTECTIONS RELATING TO MORTGAGES AND MORTGAGE 
                    FORECLOSURES FOR SURVIVING SPOUSES.

  (a) Protection for Surviving Spouse.--Section 303 of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 533) is amended by 
adding at the end the following new subsection:
  ``(e) Protection for Surviving Spouse.--During the five-year period 
beginning on the date of the enactment of this subsection, with respect 
to a servicemember who dies while in military service and whose death 
is service-connected, this section shall apply to the surviving spouse 
of the servicemember if such spouse is the successor in interest to 
property covered under subsection (a).''.
  (b) Effective Date.--Subsection (e) of section 303 of such Act, as 
added by subsection (a), shall apply to a surviving spouse of a 
servicemember whose death is on or after the date of the enactment of 
this Act.

SEC. 2. REQUIREMENTS FOR LENDING INSTITUTIONS THAT ARE CREDITORS FOR 
                    OBLIGATIONS AND LIABILITIES COVERED BY THE 
                    SERVICEMEMBERS CIVIL RELIEF ACT.

  Section 207 of the Servicemembers Civil Relief Act is amended--
          (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
          (2) by inserting after subsection (c) the following new 
        subsection (d):
  ``(d) Lending Institution Requirements.--
          ``(1) Compliance officers.--Each lending institution subject 
        to the requirements of this section shall designate an employee 
        of the institution as a compliance officer who is responsible 
        for ensuring the institution's compliance with this section and 
        for distributing information to servicemembers whose 
        obligations and liabilities are covered by this section.
          ``(2) Toll-free telephone number.--During any fiscal year, a 
        lending institution subject to the requirements of this section 
        that had annual assets for the preceding fiscal year of 
        $10,000,000,000 or more shall maintain a toll-free telephone 
        number and shall make such telephone number available on the 
        primary Internet Web site of the institution.''.

SEC. 3. EXTENSION OF PERIOD OF PROTECTIONS FOR SERVICEMEMBERS AGAINST 
                    MORTGAGE FORECLOSURES.

  (a) Extended Period of Protections.--
          (1) Stay of proceedings and period of adjustment of 
        obligations relating to real or personal property.--Section 
        303(b) of the Servicemembers Civil Relief Act (50 U.S.C. App. 
        533(b)) is amended by striking ``within 9 months'' and 
        inserting ``within 12 months''.
          (2) Period of relief from sale, foreclosure, or seizure.--
        Section 303(c) of such Act (50 U.S.C. App. 533(c)) is amended 
        by striking ``within 9 months'' and inserting ``within 12 
        months''.
          (3) Sunset.-- The amendments made by paragraphs (1) and (2) 
        shall expire on December 31, 2017. Effective January 1, 2018, 
        the provisions of subsections (b) and (c) of section 303 of the 
        Servicemembers Civil Relief Act, as in effect on the day before 
        the date of the enactment of the Housing and Economic Recovery 
        Act of 2008 (Public Law 110-289), are hereby revived.
  (b) Repeal of Superceded Provision.--Subsection (c) of section 2203 
of the Housing and Economic Recovery Act of 2008 (Public Law 110-289; 
50 U.S.C. App. 533 note) is amended to read as follows:
  ``(c) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.''.

  Amend the title so as to read:

    A bill to amend the Servicemembers Civil Relief Act to 
provide surviving spouses with certain protections relating to 
mortgages and mortgage foreclosures, and for other purposes.

                          Purpose and Summary

    H.R. 1263, a bill to amend the Servicemembers Civil Relief 
Act to provide surviving spouses with certain protections 
relating to mortgages and mortgage foreclosures, was introduced 
on March 30, 2011, by Ranking Member Bob Filner of California.
    H.R. 1263, as amended, includes provisions of three bills 
introduced in the 112th Congress. These bills are: H.R. 1263 as 
introduced; H.R. 2329, a bill to amend the Servicemembers Civil 
Relief Act to provide for certain requirements for financial 
institutions that are creditors for obligations and liabilities 
covered by that Act, introduced by Representative Bill Johnson 
of Ohio; and H.R. 1911, a bill to amend the Servicemembers 
Civil Relief Act to permanently extend the period of 
protections for servicemembers against mortgage foreclosures, 
and for other purposes, introduced by Representative Bruce 
Braley of Iowa.

                  Background and Need for Legislation

    On December 19, 2003, President Bush signed into law the 
Servicemembers Civil Relief Act (SCRA), Public Law (P.L.) 108-
189, 117 Stat. 2835, which was a significant amendment to the 
Soldiers' and Sailors' Civil Relief Act of 1940 (54 Stat. 
1178). SCRA was designed to help ease the economic and legal 
burdens on military personnel who are on active-duty status. 
The SCRA is intended to postpone, suspend, or relieve certain 
civil obligations during a servicemember's period of active 
duty and accomplishes this in part by regulating certain legal 
actions against military personnel. A key protection for 
servicemembers was on the stay of a sale or foreclosure of 
their home. The law states that ``a sale, foreclosure, or 
seizure of property for a breach of an obligation described in 
subsection (a) shall not be valid if made during, or within 9 
months after, the period of the servicemember's military 
service[.]'' The nine month time-frame was changed from 90 days 
to 9 months in section 2203 of the Housing and Economic 
Recovery Act of 2008 (P.L. 110-289). This temporary extension 
is set to expire on December 31, 2012, when the original 90-day 
period will go back into effect.
    The Washington Post notes that since U.S. forces began 
Operation Iraqi Freedom and Operation Enduring Freedom combat 
operations in 2001, 6,026 servicemembers have died in service 
as of June 5, 2011. This means that thousands of families have 
lost a spouse, a wage earner and servicemember mortgage 
protections under the SCRA. While a family grieves the loss of 
a servicemember, the resulting change in income will force a 
surviving spouse to make important financial decisions 
including whether they will keep or sell their home. The 
surviving family should be given sufficient time to refinance, 
make arrangements with the lender to restructure the loan, or 
sell the house.
    In January 17, 2011, a JPMorgan Chase official told NBC 
News that over 4,000 servicemembers had been illegally 
overcharged and that many military families had been improperly 
foreclosed. These improper foreclosures that came to light 
involve only servicemembers that had the protection. Surviving 
spouses did not have this protection and we can only surmise 
how many lost their homes when the military family needed it 
most.
    This change in law will recognize that military families 
serve with the spouse and sacrifice just as much for their 
country.
    In February 2011, allegations surfaced of mortgage-related 
violations of the SCRA by JPMorgan Chase Bank and other lending 
institutions. These allegations alleged that these institutions 
were unlawfully foreclosing on servicemembers' homes and 
charging interest rates above the six-percent cap required by 
SCRA. On February 9, 2011, the Committee held an oversight 
hearing to review these allegations and received testimony from 
Captain Jonathon Rowles (USMC), and Mrs. Julia Rowles, about 
the trouble they had with JPMorgan Chase when they tried to 
assert their rights under SCRA. They commented that when they 
called the toll-free number provided by the bank, their 
employees were woefully inadequate in their knowledge of SCRA 
and there didn't seem to be in anyone in charge to ensure that 
the bank was complying with SCRA.
    In response to this hearing and Committee's continued 
oversight of SCRA abuses, this section clarifies requirements 
for banks to comply with SCRA. The section requires all lending 
institutions affected by SCRA to employ and/or designate an 
SCRA compliance officer. This will make it clear that all banks 
and other lending institutions must take SCRA seriously and 
have at least one person responsible to ensure their 
institution's compliance. The section further requires banks 
that have annual assets of $10 billion to have a toll-free 
hotline for servicemembers to call and ask questions about 
their mortgage and SCRA.
    On February 4, 2011, USA Today noted in an article that 
20,000 military members and Reservists faced foreclosure in 
2010. The foreclosure filings increased in 2010 in 163 zip 
codes located near military bases. About 12,000 military 
families have applied for the Homeowners Assistance Program run 
by the Pentagon and about 9,000 were deemed eligible. USA 
Cares, a charity providing assistance to troops, notes that 
demand for help has increased 19 percent. While JPMorgan Chase 
admitted to improperly foreclosing on servicemembers, this was 
only one bank that publicly came forth with its admission. 
Therefore, the Committee remains concerned with the true number 
of families affected.
    A home is often a veteran's largest financial asset and 
they should have an opportunity to avoid a negative mark on 
their credit history by working with the lender to minimize the 
chance of foreclosure or other less advantageous options such 
as a short sale. When a servicemember separates from the armed 
services, they need sufficient time to establish good economic 
footing to be successful. Some military families experience 
difficulties--often related to owning a home where the 
servicemember is stationed--in the transition from the military 
to the civilian world.

Section 1--Expansion of protections relating to mortgage foreclosures 
        for surviving spouses

    Section 1 would extend foreclosure-related protections to 
12 months for surviving spouses of servicemembers who die on 
active duty or whose death is service-connected.

Section 2--To amend the Servicemembers Civil Relief Act to provide for 
        certain requirements for financial institutions that are 
        creditors for obligations and liabilities covered by that Act

    Section 2 clarifies requirements for banks to comply with 
SCRA by requiring certain large lending institutions to 
designate an SCRA compliance officer and to maintain a toll-
free number on its Web site for SCRA issues.

Section 3--Extension of period of protections for servicemembers 
        against mortgage foreclosures

    Section 3 would extend the current 9-month period during 
which servicemembers are protected from foreclosure-related 
proceedings to 12 months and revert such protections to 9 
months after 5 years from enactment.

                                Hearings

    On July 7, 2011, the Subcommittee on Economic Opportunity 
conducted a legislative hearing on various bills introduced 
during the 112th Congress, including: H.R. 1911, H.R. 240, H.R. 
1263, H.R. 120, H.R. 2274, H.R. 2301, H.R. 2302, H.R. 2345, and 
H.R. 2329. The following witnesses testified: Mr. Tom 
Tarantino, Senior Legislative Associate of Iraq and Afghanistan 
Veterans of America; Mr. Shane Barker, Senior Legislative 
Associate, National Legislative Service of the Veterans of 
Foreign Wars of the United States; Mr. Jeff Steele, Assistant 
Director, National Legislative Commission of The American 
Legion; MG David Bockel, USA (Ret.), Executive Director of the 
Reserve Officers Association of the United States also on 
behalf of Reserve Enlisted Association of the United States; 
Mr. Arthur F. Kirk, Jr., President, Saint Leo University, Saint 
Leo, FL, on behalf of National Association of Independent 
Colleges and Universities; Ms. Susan C. Aldridge, Ph.D., 
President, University of Maryland University College, Adelphia, 
MD, on behalf of the American Association of State Colleges and 
Universities; and Mr. Curtis L. Coy, Deputy Under Secretary for 
Economic Opportunity Veterans Benefits Administration of the 
U.S. Department of Veterans Affairs, who was accompanied by Mr. 
John Brizzi, Deputy Assistant General Counsel, Office of 
General Counsel of 
the U.S. Department of Veterans Affairs, Ms. Vivianne Cisneros 
Wersel, Au.D., Chair, Government Relations Committee of Gold 
Star Wives of America, Inc., and the Paralyzed Veterans of 
America submitted statements for the record.

                       Subcommittee Consideration

    On July 21, 2011, the Subcommittee on Economic Opportunity 
met in an open markup session, a quorum being present, and 
approved H.R. 1263, by voice vote. Ranking Member Braley 
offered a motion to forward H.R. 1263 to the full Committee. 
His motion was approved by voice vote.

                        Committee Consideration

    On September 8, 2011, the full Committee met in an open 
markup session, a quorum being present, to consider H.R. 1263. 
Ranking Member Filner offered an amendment in the nature of a 
substitute to include H.R. 2329 and H.R. 1911. The amendment in 
the nature of a substitute was agreed to by voice vote. 
Following this vote, the full Committee ordered favorably 
reported H.R. 1627, to the House of Representatives, by voice 
vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report the legislation and amendments thereto. 
There were no record votes taken on amendments or in connection 
with ordering reported H.R. 1263, as amended, to the House. A 
motion by Ranking Member Bob Filner of California to order 
favorably reported H.R. 1263, as amended, to the House of 
Representatives was agreed to by voice vote.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

           New Budget Authority, Entitlement Authority, and 
                            Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 1263, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
1263, as amended, prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 1263, as amended, provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974.

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 23, 2011.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1263, a bill to 
amend the Servicemembers Civil Relief Act to provide surviving 
spouses with certain protections relating to mortgages and 
mortgage foreclosures.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Newman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 1263--A bill to amend the Servicemembers Civil Relief Act to 
        provide surviving spouses with certain protections relating to 
        mortgages and mortgage foreclosures

    H.R. 1263 would extend protections related to mortgage 
foreclosure under the Servicemembers Civil Relief Act (SCRA). 
Military personnel are shielded from foreclosure on a 
residential mortgage for up to nine months after they leave 
active duty. However, after January 1, 2013, the period during 
which foreclosures are deferred declines to 90 days. The bill 
would increase that protection to a 12-month period, until 
December 31, 2017, after which the forbearance period would 
decline to 90 days. The bill also would grant that same 
foreclosure protection to the surviving spouses of 
servicemembers who die on active duty. The enhanced protections 
for surviving spouses would expire five years after enactment.
    Enacting H.R. 1263 would affect direct spending; therefore, 
pay-as-you-go procedures apply. Federal agencies such as the 
Department of Veterans Affairs and the Federal Housing 
Administration, which currently guarantee the mortgages of some 
servicemembers, are responsible for the payment of any interest 
that accrues on such a mortgage during the period between the 
stoppage of payments on the mortgage and the time the agency 
finally settles the loan with the originator. Therefore, 
delaying certain foreclosures could result in additional costs 
to the federal government. Because of the low number of 
affected mortgages, CBO estimates that such costs would be 
insignificant.
    The bill would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
by adding and expanding protections for servicemembers as 
authorized under SCRA. CBO estimates that the costs to public 
and private entities of complying with the mandates would be 
small and would not exceed the thresholds established in UMRA 
for intergovernmental and private-sector mandates ($71 million 
and $142 million, respectively, in 2011, adjusted annually for 
inflation).
    The bill would require public and private lending 
institutions that are subject to SCRA to designate an employee 
who would ensure compliance with the act. In addition, lending 
institutions with over $10 billion in annual assets in the 
preceding fiscal year would be required to maintain a toll-free 
telephone number to provide assistance to servicemembers. 
Lending institutions currently employ compliance officers, and 
all large institutions maintain toll-free numbers. For that 
reason, CBO estimates that the extra training for employees and 
the maintenance of toll-free numbers would not impose 
significant costs on private entities. Because few lending 
institutions are public entities, CBO estimates that the 
intergovernmental costs of the mandate also would be small.
    Current law grants temporary stays of civil proceedings 
related to real or personal property, mortgages, evictions, and 
foreclosures to servicemembers whose military service has 
ended. As described above, the bill would extend the length of 
such stays to 12 months after a servicemember's military 
service ends and expand eligibility to certain surviving 
spouses. The number of servicemembers who face foreclosure 
within 12 months of separation is small. The current number of 
servicemembers killed on active duty since March 2003 is less 
than 6,500. Thus, CBO expects the cost of the mandate to be 
minimal.
    The CBO staff contacts for this estimate are David Newman 
(for federal costs), Lisa Ramirez-Branum (for state and local 
costs), and Elizabeth Bass (for the impact on the private 
sector). The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 1263, as amended, prepared by the 
Director of the Congressional Budget Office pursuant to section 
423 of the Unfunded Mandates Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
1263, as amended.

                 Statement of Constitutional Authority

    Pursuant to Article I, section 8 of the United States 
Constitution, the reported bill is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.''

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1--Expansion of protections relating to mortgage foreclosures 
        for surviving spouses

    This section would amend section 303 of the Servicemembers 
Civil Relief Act (50 U.S.C. 533) to extend mortgage related 
protections for surviving spouses of servicemembers who die on 
active duty or whose death is service-connected. This 
protection states that a lending institution is not allowed to 
foreclose on property owned by the surviving spouse until at 
least 12 months following the servicemember's death. This 
provision would be effective with the enactment of this bill 
and would sunset five years from the date of enactment.

Section 2--Requirements for lending institutions that are creditors for 
        obligations and liabilities covered by the Servicemembers Civil 
        Relief Act

    This section amends section 207 of the Servicemembers Civil 
Relief Act (50 U.S.C. 526) would extend protections for 
servicemembers under SCRA.
    Subsection (d)(1) would require all lending institutions 
covered by SCRA to designate an employee who is responsible for 
their institution's compliance with SCRA and for providing 
information to their customers who are covered by SCRA.
    Subsection (d)(2) would require that any institution with 
annual assets of $10 billion in the previous fiscal year 
maintain a toll-free telephone number for their customers. It 
would also require these institutions to publish this toll-free 
number on their Web site.

Section 3--Extension of period of protections for servicemembers 
        against mortgage foreclosures

    This section amends section 303(b) and 303(c) of the 
Servicemembers Civil Relief Act (50 U.S.C. 533) to extend 
mortgage-related provisions for servicemembers.
    Subsection (a)(1) would extend the disallowance on stay 
proceedings and adjustment of obligations related to real or 
personal property for SCRA covered property from 9 months after 
the servicemembers returns from active duty to 12 months.
    Subsection (a)(2) would extend the disallowance on 
foreclosure or seizure for SCRA covered property from 9 months 
after the servicemembers returns from active duty to 12 months.
    Subsection (a)(3) would require that the protections in 
paragraphs (1) and (2) be reduced to nine months after active 
duty service, 5 years following the enactment of this bill.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                    SERVICEMEMBERS CIVIL RELIEF ACT




           *       *       *       *       *       *       *
TITLE II--GENERAL RELIEF

           *       *       *       *       *       *       *


SEC. 207.   MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE MILITARY 
                    SERVICE.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Lending Institution Requirements.--
          (1) Compliance officers.--Each lending institution 
        subject to the requirements of this section shall 
        designate an employee of the institution as a 
        compliance officer who is responsible for ensuring the 
        institution's compliance with this section and for 
        distributing information to servicemembers whose 
        obligations and liabilities are covered by this 
        section.
          (2) Toll-free telephone number.--During any fiscal 
        year, a lending institution subject to the requirements 
        of this section that had annual assets for the 
        preceding fiscal year of $10,000,000,000 or more shall 
        maintain a toll-free telephone number and shall make 
        such telephone number available on the primary Internet 
        Web site of the institution.
  [(d)] (e) Definitions.--In this section:
          (1) * * *

           *       *       *       *       *       *       *

  [(e)] (f) Penalty.--Whoever knowingly violates subsection (a) 
shall be fined as provided in title 18, United States Code, 
imprisoned for not more than one year, or both.

 TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, 
LEASES, TELEPHONE SERVICE CONTRACTS

           *       *       *       *       *       *       *


SEC. 303.   MORTGAGES AND TRUST DEEDS.

  (a) * * *
  (b) Stay of Proceedings and Adjustment of Obligation.--In an 
action filed during, or [within 9 months] within 12 months 
after, a servicemember's period of military service to enforce 
an obligation described in subsection (a), the court may after 
a hearing and on its own motion and shall upon application by a 
servicemember when the servicemember's ability to comply with 
the obligation is materially affected by military service--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Sale or Foreclosure.--A sale, foreclosure, or seizure of 
property for a breach of an obligation described in subsection 
(a) shall not be valid if made during, or [within 9 months] 
within 12 months after, the period of the servicemember's 
military service except--
          (1) * * *

           *       *       *       *       *       *       *

  (e) Protection for Surviving Spouse.--During the five-year 
period beginning on the date of the enactment of this 
subsection, with respect to a servicemember who dies while in 
military service and whose death is service-connected, this 
section shall apply to the surviving spouse of the 
servicemember if such spouse is the successor in interest to 
property covered under subsection (a).

           *       *       *       *       *       *       *

                              ----------                              


               HOUSING AND ECONOMIC RECOVERY ACT OF 2008



           *       *       *       *       *       *       *
DIVISION B--FORECLOSURE PREVENTION

           *       *       *       *       *       *       *


TITLE II--MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS

           *       *       *       *       *       *       *


SEC. 2203.   ENHANCEMENT OF PROTECTIONS FOR SERVICEMEMBERS RELATING TO 
                    MORTGAGES AND MORTGAGE FORECLOSURES.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Effective Date; Sunset.--
          [(1) Effective date.--The amendment made by 
        subsection (a) shall take effect on the date of 
        enactment of this Act.
          [(2) Sunset.--The amendments made by subsection (a) 
        shall expire on December 31, 2010. Effective January 1, 
        2011, the provisions of subsections (b) and (c) of 
        section 303 of the Servicemembers Civil Relief Act, as 
        in effect on the day before the date of the enactment 
        of this Act, are hereby revived.]
  (c) Effective Date.--The amendments made by subsection (a) 
shall take effect on the date of the enactment of this Act.

           *       *       *       *       *       *       *