HUD has released Mortgagee Letter 2006-28 titled, "Mortgage and Foreclosure Rights of Servicemembers under theServicemembers Civil Relief Act."

This Mortgagee Letter provides information regarding a new legal requirement to notify homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents under the Servicemembers Civil Relief Act (SCRA). 

It also provides guidance in the following areas regarding the implementation of SCRA requirements in servicing FHA-insured mortgages.  This guidance supersedes prior Mortgagee letters ML 2003-04, and ML 01-22. However, the guidance provided in ML 91-20 remains valid with respect to the calculation of Section 235 subsidy.

• Servicemembers Civil Relief Act Notice
• Legal Rights and Protections Under the SCRA Applicable to all Debts
• Reduction of Monthly Payments on FHA-Insured Loans
• Section 235 Mortgage Insurance and Assistance Payments Program
• HUD Relief Provisions for Servicemembers
• Postponement of Principal Payments
• Postponement of Foreclosure
• Loss Mitigation
• Claims for FHA Insurance Benefits
• Reimbursement of Issuers for Interest Shortfalls on Eligible Loans in Ginnie Mae Mortgage-Backed Securities
• Verification of Military Service

Any questions regarding this Mortgagee Letter may be directed to HUD's National Servicing Center through its toll-free number 1-888-297-8685.

To view the Mortgagee Letter in its entirety, please click here.