skip to main navigation skip to secondary navigation skip to content
Board of Governors of the Federal Reserve System
skip to content
Board of Governors of the Federal Reserve System

Consumer Affairs Letters

CA 12-8

Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders

June 21, 2012

Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.  20551
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
CA 12-8
June 21, 2012
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS AND TO EACH DOMESTIC AND FOREIGN BANKING ORGANIZATION SUPERVISED BY THE FEDERAL RESERVE:
SUBJECT:   Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders
On June 21, 2012, the Federal Reserve, along with the Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency, issued the attached guidance to address mortgage servicing practices that may pose risks to homeowners who are serving in the military. Specifically, the guidance addresses risks related to military homeowners who have informed the servicer that they have received Permanent Change of Station ("PCS") orders and may seek assistance with their mortgage loans.

This guidance is consistent with guidance and examination procedures previously issued by the Federal Reserve, including guidance regarding working with homeowners who are financially unable to continue to meet their mortgage payments (SR Letter 07-61/CA Letter 07-01), examination procedures regarding the Servicemembers Civil Relief Act (CA Letter 11-06), and guidance and examination procedures regarding unfair or deceptive acts or practices (CA Letters 04-02 and 07-08).

Federal Reserve Banks are asked to distribute this letter and the accompanying statement to state member banks and bank holding companies, as well as to supervisory and examination staff. If you have any questions concerning this guidance, please contact Lanette Meister at (202) 452-2705.

signed by
Sandra F. Braunstein
Director
Division of Consumer and Community Affairs


Cross References:
  • CA Letter 11-06, “Revised Examination Procedures for the Servicemembers Civil Relief Act”
  • CA Letter 07-08, “Consumer Compliance Examination Procedures for the Unfair or Deceptive Acts or Practices Provisions of Section 5 of the Federal Trade Commission Act
  • SR Letter 07•61/CA Letter 07-01, “Working with Mortgage Borrowers”
  • CA Letter 04-02, “Unfair or Deceptive Acts or Practices by State-Chartered Banks”
Last update: September 5, 2014