Pub. 5 2015-2016 Issue 6

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S May • June 2016 15 detailed the plight of getting proper SCRA information out to servicemembers in a way that they can readily understand and absorb (see, e.g., GAO-14-221); requiring themtokeep trackof two different timelines now only makes that problem worse. Secondly, the content provided to servicemembers from themilitarymay not be updated to reflect the current status of the law—note that certain government-runwebsites, includingHUD’s, still list the timeperiod asbeingoneyear. (SeeHUD’s currently-postedofficial SCRAnotice, at http://portal.hud.gov/hudportal/documents/huddoc?id=92070. pdf, for an example of this.) While these websites tend to mention in passing that the 1 year period expired on January 1st, they do not make absolutely clear that the 1 year provision no longer exists, so delinquent servicemembers scanning these sources quickly might mistakenly believe they havemore time to get their financial affairs in order after military service than is actually the case. Finally, in the event a servicemember actually learns that his or her protection period now has shortened from one year to three months, he or she may feel forced to extend his or her military career longer than previously anticipated in order to stave off foreclosure, only to have the one-year protection period return in a fewmonths’ time. Aside from negatively impacting servicemembers themselves, this uncertainty also causes massive frustration for many financial in - stitutions, especially those who are in the process of drafting new SCRA notice letters and amending their SCRA policies for annual board review. The situation presents a unique challenge for policy crafting, as it’s all but certain theone-year extensionwill pass unan- imously and be made retroactive at some point this year, possibly even later this month. (Some institutions have suggested crafting language similar to “three months or as otherwise prescribed by federal law” for the foreclosure protection period, which appears to beagoodworkaround in the interim.) Furthermore, asnotedabove, the official SCRA notice currently offered on HUD’s website still lists the protection period as one year, so an institution amending a form to instead read “three months” appears to be contradicting that form. Compliance Alliance advises that institutions choosing to foreclose on borrowers between threemonths and one year after the end of military service do so at their own peril. For now, when it comes to the exact length of the foreclosure pro- tection period under the SCRA, it’s a game of ‘wait-and-see.’ If you wish to contact directly any of the congressional parties involved in extending theprotectionperiod, the sponsoringcongressmanofHR 4252 isRep. StephenFincher of Tennessee, andhe canbe reachedat (202)225-4714. Thechairmanof theVeteransAffairsSubcommittee onEconomicOpportunity (EO) isRep. BradWenstrupof Ohio, and he can be reached at (202) 225-3164. n James McGuire has worked as an attorney and legal researcher in the financial indus- try since 2010. After graduating from the University of Minnesota Law School in 2007, he served as Assistant General Counsel for the Texas Attorney General in the Open Records Division, and later worked as a solo practitioner in the Austin area. Prior to joining Compliance Alliance in July of 2015, James assisted a major mortgaging servicer with the OCC’s independent foreclosure audit and was an SEC filing researcher for amajor financial and legal research firm. He has extensive first-hand experience with open records, mortgage servicing, consumer law and securities regulation. Compliance Alliance offers a wide variety of compliance man- agement solutions. To learn how to put them to work for your bank, call (888) 353-3933, visit compliancealliance.com , or email info@compliancealliance.com.