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Press Release
June 21, 2012

Agencies issue guidance concerning mortgage
servicing practices that impact servicemembers
For immediate release
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The Federal Reserve Board on Thursday joined with four other financial
regulatory agencies in issuing guidance concerning mortgage servicing
practices that may pose risks to homeowners serving in the military.
Specifically, the guidance addresses risks related to military
homeowners who have informed their loan servicer that they have
received Permanent Change of Station (PCS) orders and who might
seek assistance with their mortgage loans.
For military homeowners, receiving PCS orders to relocate to a new duty
station can present challenges when they are unable to sell their homes
to pay off the mortgage debt. The guidance reminds mortgage loan
servicers that their employees should be adequately trained about the
options available for assisting military homeowners with PCS orders.
When homeowners notify their servicers that they have received PCS
orders, servicers should provide accurate, clear, and readily
understandable information about available options for which the
homeowner may qualify based on the information known. Servicers also
should communicate decisions on assistance requests in a timely
manner.    
The guidance, which is attached, is consistent with the Servicemembers
Civil Relief Act and with guidance and examination procedures
previously issued by the Federal Reserve regarding working with

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homeowners who are financially unable to continue meeting their
mortgage payments.
Joining in the guidance are the Consumer Financial Protection Bureau,
the Federal Deposit Insurance Corporation, the National Credit Union
Administration, and the Office of the Comptroller of the Currency.
Attachment (PDF)
For media inquiries, call 202-452-2955.

Last Update: June 21, 2012

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
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