NEWS: As part of an April 15th Mortgagee Letter 2025-12, the Department of Housing and Urban Development (HUD) referenced an updated Servicemembers Civil Relief Act Notice. In addition to slight format changes, the expiration date of the notice was updated to March 31, 2028. A mandatory compliance date was not provided, but since the previous notice is expired, we recommend that credit unions implement this new form as soon as reasonably possible. Credit unions will want to confirm that your SCRA Notice disclosure is updated to reflect the new expiration date.
As a reminder, HUD requires credit unions to send two notices to certain mortgagors who are delinquent or in default on their loans:
- HUD Counseling Availability Notice – This notice must notify the homeowner of the availability of any homeownership counseling offered by the creditor and provide either a list of HUD-approved nonprofit homeownership counseling organizations or the toll-free number HUD has established through which a list of such organizations can be obtained.
- Servicemembers Civil Relief Act Notice Disclosure – Mortgage lenders must notify all homeowners who are in default about the foreclosure rights of servicemembers and their dependents under the SCRA.
These notices must be sent to the borrower within 45 days of delinquency, at the latest. We explain HUD’s delinquent homeowner notice requirements in The League’s ii Release No. B058.
For more information about the SCRA, see The League’s ii Release No. 0072 – Servicemembers’ Civil Relief Act.