CONTENT Accounts ATM / Debit Cards Business Accounts Certificates of Deposit Checking Accounts Credit Card Accounts Online Banking / Billpay Retirement Accounts Savings Accounts Trusts Checks /    Money Orders Checks You Received Checks You Wrote Money Orders Lending Business Credit Credit Cards Home Equity Home Mortgage Mortgage Help Personal Student Loans Vehicle Loans Manage Your Money Bankruptcy Debt Management Personal Finance My bank said. . . Safe Deposit Boxes Scams / Fraud Identity Theft Internet Fraud / Phishing Special Situations Deceased Individuals Foreign Customers Incapacitated Individuals Minors Powers of Attorney Special Topics Keeping Your Money Safe Military Issues Mortgage Help Off to School   DEPARTMENTS Ask a Banker Banking Blog Banking Lingo Banking Tools Discussions Multimedia Podcasts Videos Resources   DETAILS Site Index Site Map Site Orientation Link to Our Site About Advertising About Us Legend for Icons  Article    Q&A  Podcast  Video  Blog  Discussions PDF    Powerpoint BankingQuestions.com Web   Home >> Military Issues   HERA and the SCRA The Servicemembers Civil Relief Act (SCRA) was enacted in an effort to ease servicemembers' anxiety associated with civil concerns such as debt and other matters. The SCRA provides among other things for a uniform maximum interest rate on outstanding debt and protection from default judgments. In furtherance of the SCRA objectives, Section 2203 of the Housing and Economic Recovery Act of 2008 (HERA), Pub. L. 110-289, 122 Stat. 2654 (2008), updated some sections of the SCRA. The revisions extend the period of protection from interest rate increase over six percent per year on mortgages, trust deeds, or mortgage-like obligations. The revisions further extend the time period during which servicemembers are protected from foreclosures or other seizures of their real property to satisfy judgments or for failure to pay outstanding obligations. The revisions became effective upon enactment on July 30, 2008. Another important HERA revision regards the SCRA interest rate limitation. The SCRA limits interest to six percent on outstanding obligations of a servicemember i.e., those obligations entered before entering military service. This includes credit cards and other debts. The SCRA provides that the reduced interest rate continues throughout the term of military service. Under the HERA revisions, for mortgages, trust deeds and mortgage like securities, the reduced interest rate will apply during the period of military service and for and additional year. The HERA revisions extended the period of the SCRA prohibition of sale or foreclosure of mortgage property or other real or personal property that secured a debt obligation after the end of military service from 90 days to nine months. The HERA also provided the more extensive time period after military service for stays on judicial proceedings The extension is slated to expire however on December 31, 2010; after that date (for example on January 1, 2011) the period of prohibition reverts to that under the SCRA that is, 90 days. Published on BankingQuestions.com 11/07/08 Accounts |  Lending | Manage Your Money | Safe Deposit Boxes  | Scams/Fraud BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more. Privacy Policy |  Disclaimer  |  Recommend This Site!  | Site Index | Link to Our Site  | Email Us