Fairness for Military Homeowners Act of 2012

Fairness for Military Homeowners Act of 2012 - Amends the Servicemembers Civil Relief Act to prohibit the absence of a servicemember from his or her principal place of residence due to active-duty military service from preventing such servicemember from refinancing a mortgage on such residence. Makes such prohibition inapplicable to a servicemember who entered into a refinancing on such residence within the past five years.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4740 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4740

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.


_______________________________________________________________________


                    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

_______________________________________________________________________

                                 A BILL


 
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness for Military Homeowners Act 
of 2012''.

SEC. 2. AMENDMENT TO SERVICEMEMBERS CIVIL RELIEF ACT.

    (a) In General.--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:

``SEC. 303A. TREATMENT OF RELOCATION FOR ACTIVE DUTY FOR PURPOSES OF 
              MORTGAGE REFINANCING.

    ``(a) Treatment of Absence From Residence Due to Active Duty.--
            ``(1) In general.--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.
            ``(2) Limitation.--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.
    ``(b) Definitions.--In this section:
            ``(1) Existing mortgage.--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--
                    ``(A) had a duration of 13 consecutive months or 
                longer; and
                    ``(B) 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.
            ``(2) Covered refinancing mortgage.--The term `covered 
        refinancing mortgage' means any mortgage--
                    ``(A) that is made for the purpose of paying or 
                prepaying, and extinguishing, the outstanding 
                obligations under an existing mortgage or mortgages; 
                and
                    ``(B) that is secured by the same residence that 
                secured such existing mortgage or mortgages.''.
    (b) Clerical Amendment.--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.''.
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