H. R. 4740
IN THE HOUSE OF REPRESENTATIVES
April 25, 2012
Mr. Hunter (for himself, Mr. West, Mrs. Davis of California, Mr. Rigell, Mr. Larsen of Washington, Mr. Ryan of Ohio, Mr. Wittman, Mr. Turner of Ohio, Mr. Heinrich, and Mr. Carter) introduced the following bill; which was referred to the Committee on Veterans’ Affairs
To amend the Servicemembers Civil Relief Act to ensure that relocation of a servicemember to serve on active duty away from the servicemember’s principal residence does not prevent the servicemember from refinancing a mortgage on that principal residence.
This Act may be cited as the
Fairness for Military Homeowners Act
Amendment to Servicemembers Civil Relief Act
Title III of the Servicemembers Civil Relief Act (50 U.S.C. App. 531 et seq.) is amended by inserting after section 303 the following new section:
Treatment of relocation for active duty for purposes of mortgage refinancing
Treatment of absence from residence due to active duty
Subject to paragraph (2), if, at any time that a servicemember who is the mortgagor under an existing mortgage does not reside in the residence that secures the existing mortgage because of relocation described in subsection (b)(1)(B), such servicemember inquires about or applies for a covered refinancing mortgage, such servicemember shall be considered, for all purposes relating to the covered refinancing mortgage, including such inquiry or application and eligibility for and compliance with any underwriting criteria and standards regarding such covered refinancing mortgage, to occupy the residence that secures the existing mortgage to be paid or prepaid by such covered refinancing mortgage as the principal residence of the servicemember during the period of any such relocation.
Paragraph (1) shall not apply with respect to a servicemember at any time if, during the 5-year period preceding such time, the servicemember entered into a covered refinancing mortgage pursuant to this section.
In this section:
The term existing mortgage means a mortgage that is secured by a 1- to 4-family residence, including a condominium or a share in a cooperative ownership housing association, that was the principal residence of a servicemember for a period that—
had a duration of 13 consecutive months or longer; and
ended upon the relocation of the servicemember caused by the servicemember receiving military orders for a permanent change of station or to deploy with a military unit, or as an individual in support of a military operation, for a period of not less than 18 months that did not allow the servicemember to continue to occupy such residence as a principal residence.
Covered refinancing mortgage
The term covered refinancing mortgage means any mortgage—
that is made for the purpose of paying or prepaying, and extinguishing, the outstanding obligations under an existing mortgage or mortgages; and
that is secured by the same residence that secured such existing mortgage or mortgages.
The table of contents for such Act is amended by inserting after the item relating to section 305 the following new item:
Sec. 303A. Treatment of relocation for active duty for purposes of mortgage refinancing.