By Vicki Needham - 05/21/12 08:16 PM EDT
Lawmakers have said that has put a burden on the military and led to unnecessary foreclosures that can affect their security clearance and career track.
They are calling for new rights and protections for military personnel beyond the Servicemembers Civil Relief Act (SCRA), which caps the interest rate on mortgage loans to active-duty members at 6 percent and prohibits lenders from foreclosing on those homes without a judge's order.
The lawmakers want to see the law strengthened and expanded to make it easier for active-duty personnel to claim deployment-related financial and credit protections by expanding what could be submitted to constitute military orders, extend foreclosure protections to surviving spouses and help in the transition from off-base to on-base housing by making it easier to terminate residential leases early and without penalty if on-base housing becomes available, they said.
Reed, a former Army captain who serves on the Banking Committee, helped with the creation of the Office of Servicemember Affairs at the Consumer Financial Protection Bureau (CFPB) to help military families avoid financial scams and go after lenders and businesses that violate the law.
Durbin pushed for the new agency and Whitehouse has sponsored legislation in the past aimed at strengthening foreclosure protection for service members.