Fairness for Military Homeowners Act of 2013

Fairness for Military Homeowners Act of 2013 - 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 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1223 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1223

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

                             March 15, 2013

Mr. Hunter (for himself, Mrs. Davis of California, Mr. Turner, and Mr. 
Ryan of Ohio) 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 2013''.

SEC. 2. TREATMENT OF RELOCATION OF MEMBERS OF THE ARMED FORCES FOR 
              ACTIVE DUTY FOR PURPOSES OF MORTGAGE REFINANCING.

    (a) In General.--Title III of the Servicemembers Civil Relief Act 
is amended by inserting after section 303 (50 U.S.C. App. 533) the 
following new section:

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

    ``(a) Treatment of Absence From Residence Due to Active Duty.--
While a servicemember who is the mortgagor under an existing mortgage 
does not reside in the residence that secures the existing mortgage 
because of a relocation described in subsection (c)(1)(B), if the 
servicemember inquires about or applies for a covered refinancing 
mortgage, the 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 such relocation.
    ``(b) Limitation.--Subsection (a) shall not apply with respect to a 
servicemember who inquires about or applies for a covered refinancing 
mortgage if, during the 5-year period preceding the date of such 
inquiry or application, the servicemember entered into a covered 
refinancing mortgage pursuant to this section.
    ``(c) 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 that--
                    ``(A) is made for the purpose of paying or 
                prepaying, and extinguishing, the outstanding 
                obligations under an existing mortgage or mortgages; 
                and
                    ``(B) is secured by the same residence that secured 
                such existing mortgage or mortgages.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 303 
the following new item:

``303A. Treatment of relocation of servicemembers for active duty for 
                            purposes of mortgage refinancing.''.
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