"Mortgage bankers across the U.S. fully support all our military men and women," said Andrew Woodward, MBA president. "For those whose situations have clearly changed as a result of being called to active duty, we strongly encourage them to call their lender to qualify for the financial relief this Act offers."
Under the Soldiers' and Sailors' Relief Act of 1940, Reserve, Guard members and other military personnel whose mortgage obligations pre-date the start of their active duty have the opportunity to cap their mortgage rates at 6 percent while on active duty. Benefits of the act also include prohibiting lenders from foreclosing against affected military personnel during, and three months after, their tours of active duty.
Activated military personnel should notify their individual mortgage lenders as soon as they receive an order of a change in status. In order to expedite the appropriate legal paperwork, affected military men and women should provide a copy of their order and proper identification to the lender.