Last reviewed: 6 October 2026
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Servicemember mortgage protections under the SCRA, explained
A federal law gives some people in military service specific protections on a mortgage taken out before they entered service. This page sets out what the statute and the CFPB say, and what the law does not do.
What this term means: The Servicemembers Civil Relief Act (SCRA) is a federal law. The CFPB says it protects people in the military or uniformed services and can limit, postpone or pause some financial and civil obligations during military service, and that it works alongside state and other federal laws.[2] The Military Lending Act (MLA) is a separate federal law that covers certain consumer loans to active-duty servicemembers and dependents.[5]
Who the CFPB says is covered
- Active-duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard and Space Force.[2]
- Members of the Reserves and National Guard serving on active duty on Title 10 orders.[2]
- Members of the National Guard mobilized under Title 32 federal orders for more than 30 consecutive days.[2]
- Active-duty commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration.[2]
- Holders of a power of attorney for the servicemembers listed above, and sometimes family members or dependents.[2]
Foreclosure protection
The statute, 50 U.S.C. § 3953, applies only to an obligation on real or personal property owned by a servicemember that originated before the period of military service, is still owed, and is secured by a mortgage, trust deed or similar security.[3] It does three things.[3]
- In an action filed during, or within one year after, the period of military service to enforce the obligation, a court may after a hearing and on its own motion, and shall on the servicemember’s application when the ability to comply is materially affected by military service, stay the proceedings or adjust the obligation.[3]
- A sale, foreclosure or seizure for breach of the obligation “shall not be valid if made during, or within one year after, the period of the servicemember’s military service,” except upon a court order granted before the sale, or under an agreement as provided in section 3918.[3]
- A person who knowingly makes, or attempts to make, a prohibited sale, foreclosure or seizure faces a fine, imprisonment for up to one year, or both.[3]
In plain language, the CFPB says that if you took out a mortgage before entering active-duty service, you generally cannot be foreclosed on without a valid court order while you are on active duty and for an additional 12 months after leaving active duty, whether or not you told your lender or servicer about your military status.[1] It adds that a judge can pause or block a foreclosure or order the loan to be adjusted, and that default-judgment protections mean the protection applies even if you do not appear in court.[2]
The 6 percent interest limit
Under 50 U.S.C. § 3937, an obligation bearing interest above 6 percent per year that you (or you and your spouse jointly) incurred before entering military service may not bear interest above 6 percent. For a mortgage, trust deed or similar security, the limit applies during military service and one year after.[4] The excess interest “is forgiven,” and the periodic payment is reduced by the interest forgiven that is allocable to the payment period.[4] “Interest” includes service charges, renewal charges, fees and any other charges except bona fide insurance.[4]
| Step | What the statute and the CFPB say |
|---|---|
| Notice to the creditor | Not later than 180 days after release from military service, you provide written notice and a copy of the military orders or another appropriate indicator of military service, such as a certified letter from a commanding officer.[4] |
| Creditor’s alternative | A creditor may instead use information from the Defense Manpower Data Center to learn whether you are on active duty.[4] |
| Effective date | On receipt of notice and orders, the creditor must treat the debt under the limit effective as of the date you were called to military service.[4] |
| Creditor’s relief | A court may relieve a creditor of the limit if it finds your ability to pay above 6 percent is not materially affected by your military service.[4] |
| CFPB summary | Notify the lender in writing, include a copy of your orders or a commanding officer’s letter, and make the request during active duty or up to 180 days after release. For mortgages the reduction lasts one additional year, and the lender cannot add the difference back afterward.[2] |
What these protections do not do
- The CFPB says a lender can still charge late fees, report late or missed payments to credit reporting companies, and try to collect the debt, including by suing.[2]
- The CFPB says a lender cannot take away your loan, change its terms or refuse credit just because you used your SCRA rights, and cannot send negative information to a credit reporting company for that reason.[2]
- The CFPB says some lenders ask you to waive your SCRA rights, that doing so removes the protections, and that you have the right to refuse and find another lender.[2]
- The CFPB says the Military Lending Act does not cover credit secured by the property being purchased, naming residential mortgages, mortgage refinances, home equity loans or lines of credit, and reverse mortgages.[5]
Where the CFPB says to get help
The CFPB says to contact your closest legal assistance (JAG) office with questions about your rights under the SCRA, and that you may also be able to get help from your state attorney general.[1] You can submit a CFPB complaint online or by calling (855) 411-CFPB (2372), and the CFPB says you can report SCRA violations to the Department of Justice’s Office of Civil Rights.[2]
How to verify this yourself
Read the two statute sections in the U.S. Code (references 3 and 4) and the CFPB pages (references 1, 2 and 5). The statute’s own text controls over the CFPB summaries. Your orders and your mortgage statements are your own record of the dates involved. To check the person you are working with, use our guide to verifying a loan officer’s NMLS license. Our published standard covers how we check loan originators, and the Register shows that method; neither reviews a lender’s or servicer’s handling of your loan.
What this page does not cover
This page is general information, not legal advice. It does not decide whether the SCRA applies to your loan or your service, and it does not cover the SCRA’s protections outside mortgages, state laws, or the VA’s loss-mitigation options. The CFPB pages were last reviewed in May 2023 (foreclosure) and July 2023 (MLA). The statute text is the U.S. Code 2024 edition as published by the Government Publishing Office. This page was last reviewed 6 October 2026.
Your next step
If you are in or recently out of service and have a mortgage that began before service, keep copies of your orders. The CFPB says to contact your closest legal assistance (JAG) office with questions about your rights under the SCRA. Then return to the Mortgage help library for related guides.