Board of Governors of the Federal Reserve System

This letter transmits revised examination procedures for the Servicemembers Civil Relief Act (SCRA). The SCRA provides certain financial protections to service members and, in some cases, their spouses, dependents, and other persons subject to the obligations of service members. These protections include, among other things, restrictions on interest rates contract rescissions, foreclosures, and the exercise of certain insurance policy options.

The SCRA was signed into law on December 19, 2003. The Housing and Economic Recovery Act of 2008 (HERA) amended several sections of this law by extending the availability of certain protections. Recent amendments to the HERA by The Helping Heroes Keep Their Homes Act of 2010 extended certain protections that were to expire on December 31, 2010 until December 31, 2012. In particular, the provision for an extended time period (from 90 days to nine months) for protections affecting foreclosure, sale, or seizure of real or personal property remains effective until December 31, 2012. The attached examination procedures reflect this extension.

Please distribute these procedures to your examination staff for immediate use. If you have any questions, please contact Brian Fink, Supervisory Consumer Financial Services Analyst, (202) 912-7878, or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.