On March 31, 2016, President Obama signed into law the Foreclosure Relief and Extension for Servicemembers Act of 2015, which continues through December 2017 a provision of the Servicemembers Civil Relief Act (SCRA) that prohibits foreclosing on a servicemember's house for one year following the servicemember's return from active duty.  

Under the original SCRA, enacted in 2003, servicemembers received only 90 days of foreclosure protection beyond their period of active duty service. In the interest of further assisting servicemembers as they transition to civilian life, Congress extended the 90-day period to nine months in 2008 and ultimately to one year in 2012, where it has remained as a result of a series of annual amendments to the sunset provision. 

The March 31 amendment continues the one-year period of protection against foreclosures, demonstrating a continued legislative and regulatory interest in protecting servicemembers and their families. The amendment's continuation of the one-year SCRA foreclosure protection period is effective retroactively to January 1, 2016, and will expire on December 31, 2017. Unless continued by further legislation, the protection period will revert back to 90 days on January 1, 2018.

Ballard Spahr's Mortgage Banking Group combines broad regulatory experience assisting clients in both the residential and commercial mortgage industries with formidable skill in litigation and depth in enforcement actions and transactions.

Attorneys in Ballard Spahr's Military Lending Task Force, led by Anthony C. Kaye, work with lenders and loan servicers to ensure compliance with military lending laws both at the federal and state levels. In addition to advising on compliance, we guide clients on enforcement actions and the defense of litigation when necessary.


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