WASHINGTON – Four Democratic senators and Delaware Attorney General Beau Biden unveiled a bill Tuesday to offer more credit relief for military families.
The legislation – sponsored by Sens. Jack Reed, D-R.I.; Dick Durbin, D-Ill.; Sheldon Whitehouse, D-R.I.; and Mark Begich, D-Alaska – would amend the Servicemembers Civil Relief Act, which generally sets a 6% interest rate cap on mortgages for active duty personnel and bans foreclosures on their homes without judicial order.
The new bill – titled the Servicemember Housing Protection Act – would expand the types of “military orders” that allow service members to claim active-duty-related credit protection, as well as extend the foreclosure restrictions to their surviving spouses.
“Giving our troops time to prepare for deployment and get their financial affairs in order is central to mission readiness,” Reed said in a press release. “Soldiers who are fighting on the frontlines to protect our country shouldn’t have to needlessly fight with creditors and landlords back home. We must ensure the laws that protect our troops keep pace with the challenges they face.”
The bill was cosponsored by Sen. Sherrod Brown, D-Ohio. It was referred to the Senate Veterans’ Affairs Committee.