S.Amdt. 5386

1. Adds SEC. 587. ENHANCEMENT OF PROTECTIONS FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS AGAINST SALE, FORECLOSURE, SEIZURE, OR SALE OF MORTGAGED PROPERTY at the end of subtitle G of title V

   Adds a section

   In S. 3001 · Placed on Calendar Senate

   "(2) No officer or employee of the Department of Defense may interfere with the ability of the Legal Counsel to give independent legal advice to the Chairman of the Joint Chiefs of Staff and to the Joint Chiefs of Staff.".

   Inserted: SEC. 587. ENHANCEMENT OF PROTECTIONS FOR MEMBERS OF THE ARMED FORCES AND THEIR DEPENDENTS AGAINST SALE, FORECLOSURE, SEIZURE, OR SALE OF MORTGAGED PROPERTY.

   Inserted: (a) Extension of Period After Military Service Covered by General Protections.--Section 303(c) of the Servicemembers Civil Relief Act (50 U.S.C. App. 533(c)) is amended by striking "90 days" and inserting "one year".

   Inserted: (b) Enhancement of Protections for Members of the Armed Forces Who Serve in Operation Iraqi Freedom or Operation Enduring Freedom and Their Dependents.--

   Inserted: (1) Scope of protections.--This subsection applies to an obligation on real or personal property owned by a covered member of the Armed Forces, or by a dependent of a covered member of the Armed Forces, regardless of whether entered into before, on, or after the member's entry onto military service, on which the covered member or dependent, as the case may be, is still obligated and that is secured by a mortgage, trust deed, or other security in the nature of a mortgage.

   Inserted: (2) Sale or foreclosure.--

   Inserted: (A) In general.--A sale, foreclosure, or seizure of property for breach of an obligation described in paragraph (1) shall not be valid if made during, or within one year after, the military service of a covered member of the Armed Forces, or the military service of the covered member of the Armed Forces concerned in the case of a dependent of such a member.

   Inserted: (B) No waiver.--The limitations of subparagraph (A) are not waivable by a covered member of the Armed Forces pursuant to section 107 of the Servicemembers Civil Relief Act (50 U.S.C. App. 517).

   Inserted: (3) Prohibition on actions for nonpayment or default.--No court shall have jurisdiction to hear any civil action against a covered member of the Armed Forces or a dependent of a covered member of the Armed Forces for nonpayment or default on an obligation described in paragraph (1) during, or within 1 year after, the military service of the covered member or the covered member Armed Forces concerned, as the case may be.

   Inserted: (4) Responsibilities of obligors.--In the event a sale, foreclosure, or seizure of property for breach of an obligation described in paragraph (1) is prohibited by operation of paragraph (2) or (3), the obligor on the obligation shall--

   Inserted: (A) notify the covered member of the Armed Forces or dependent concerned, in writing, of the outstanding liability of the covered member or dependent, as the case may be, for principal and interest on the obligation; and

   Inserted: (B) if the obligor determines that a modification of the obligation or a reduction in the outstanding liability of the covered member or dependent for principal, interest, or both on the obligation is in the interest of the obligor and the covered member or dependent, as the case may be, notify the covered member or dependent, as the case may be, in writing, of--

   Inserted: (i) such determination; and

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   Inserted: (ii) the actions to be taken by obligor and the covered member or dependent, as the case may be, to effectuate the modification or reduction.

   Inserted: (5) Effect of protections on future financial transactions.--

   Inserted: (A) Covered members.--The application of paragraph (2), (3), (4), or (5) to an obligation described in paragraph (1) of a covered member of the Armed Forces shall be deemed to constitute the receipt by the covered member of a stay of a civil liability with respect to the obligation under the Servicemembers Civil Relief Act for purposes of section 108 of that Act (50 U.S.C. App. 518).

   Inserted: (B) Dependents.--In the event of the application of paragraph (2), (3), (4), or (5) to an obligation described in paragraph (1) of a dependent of a covered member of the Armed Forces, the dependent shall be deemed to be a servicemember receiving a stay of a civil liability with respect to the obligation under the Servicemembers Civil Relief Act for purposes of section 108 of that Act.

   Inserted: (6) Penalties.--The provisions of section 303(d) of the Servicemembers Civil Relief Act (50 U.S.C. 533(d)) shall apply to sales, foreclosures, and seizures of property, and attempted sales, foreclosures, and seizures of property, prohibited by paragraph (2).

   Inserted: (7) Definitions.--In this subsection:

   Inserted: (A) Covered member of the armed forces.--The term "covered member of the Armed Forces" means a member of the Armed Forces, including a member of a Reserve component of the Armed Forces, who serves on active duty in the Armed Forces--

   Inserted: (i) in Iraq as part of Operation Iraqi Freedom; or

   Inserted: (ii) in Afghanistan as part of Operation Enduring Freedom.

   Inserted: (B) Dependent.--The term "dependent", in the case of a covered member of the Armed Forces, has the meaning given that term in section 101(4) of the Servicemembers Civil Relief Act (50 U.S.C. App. 511(4)).

   Inserted: (C) Military service.--The term "military service", in the case of a covered member of the Armed Forces, means service of the member on active duty in the Armed Forces--

   Inserted: (i) in Iraq as part of Operation Iraqi Freedom; or

   Inserted: (ii) in Afghanistan as part of Operation Enduring Freedom.

   Inserted: (8) Effective date.--This subsection shall take effect on the date of the enactment of this Act.

   Inserted: SEC. 588. FINANCIAL SERVICES COUNSELING ON MORTGAGES AND MORTGAGE FORECLOSURES FOR MEMBERS OF THE ARMED FORCES WHO SERVE IN OPERATION IRAQI FREEDOM OR OPERATION ENDURING FREEDOM, VETERANS, AND THEIR DEPENDENTS.

   Inserted: (a) Counseling Required.--

   Inserted: (1) In general.--The Secretary of Defense shall, in coordination with the Secretary of Veterans Affairs and the Secretary of Housing and Urban Development, provide financial services counseling relating to mortgages and mortgage foreclosures to a veteran, covered member of the Armed Forces, or dependent of such veteran or covered member, upon request of such individual.

   Inserted: (2) Provision at no cost to recipient.--Financial services counseling shall be provided under this section at no cost to the recipient.

   Inserted: (b) Annual Outreach Plan.--

   Inserted: (1) Plan required.--The Secretary of Defense shall, in coordination with the Secretary of Veterans Affairs and the Secretary of Housing and Urban Development, develop and implement on an annual basis a plan for the provision of outreach to veterans, covered members of the Armed Forces, and their dependents on the financial services counseling available under this section.

   Inserted: (2) Elements.--Each plan under this subsection shall include--

   Inserted: (A) efforts to identify veterans, covered members of the Armed Forces, or dependents who are not otherwise enrolled in or registered for financial counseling services under other programs administered by the Secretary of Defense or the Secretary of Veterans Affairs; and

   Inserted: (B) provisions for informing veterans, covered members of the Armed Forces, and their dependents about loan modification programs, workout plans, foreclosure prevention, and other financial counseling programs available to them through the Department of Defense, the Department of Veterans Affairs, the Department of Housing and Urban Development, nonprofit organizations, and other Federal, State, and local initiatives.

   Inserted: (3) Consultation.--In developing each plan under this subsection, the Secretary of Defense shall consult with, at a minimum, the following:

   Inserted: (A) Directors or other responsible officials of veterans service organizations.

   Inserted: (B) Representatives of other outreach programs for veterans.

   Inserted: (C) Nonprofit organizations.

   Inserted: (D) Other appropriate Federal, State, or local government agencies, individuals, or organizations.

   Inserted: (c) Covered Member of the Armed Forces Defined.--In this section, the term "covered member of the Armed Forces" means a member of the Armed Forces, including a member of a Reserve component of the Armed Forces, who serves on active duty in the Armed Forces--

   Inserted: (1) in Iraq as part of Operation Iraqi Freedom; or

   Inserted: (2) in Afghanistan as part of Operation Enduring Freedom.

   Original wording

   At the end of subtitle G of title V, add the following:

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As printed