source:
  type: regulation
  id: hud-4000-1-programs-and-products-servicing-fha-insured-mortgages-for-se
  authority: HUD Handbook 4000.1 — Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers
    (03/31/2022)
  description: "HUD Handbook 4000.1 section \"Programs and Products - Servicing FHA-Insured Mortgages\
    \ for Servicemember-Borrowers\". Gap-fill (verbatim, title-diff). \n"
obligations:
- id: hud-4000-1-programs-and-products-servicing-fha-insured-mortgages-for-se-full
  canonical_id: hud-4000-1-programs-and-products-servicing-fha-insured-mortgages-for-se-full
  section: HUD Handbook 4000.1
  description: "Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers: 3.\
    \ Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers (03/31/2022)\
    \ \n \ni. Servicing FHA-Insured Mortgages for Servicemember-Borrowers (03/31/2022) \ni. Servicemembers\
    \ Civil Relief Act \nThe Servicemembers Civil Relief Act of 2003 (SCRA) as amended by Public Law 108189,\
    \ …"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers
      (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "3. Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers\
      \ (03/31/2022) \n \ni. Servicing FHA-Insured Mortgages for Servicemember-Borrowers (03/31/2022)\
      \ \ni. Servicemembers Civil Relief Act \nThe Servicemembers Civil Relief Act of 2003 (SCRA) as amended\
      \ by Public Law 108189, effective December 19, 2003, provides legal protections and debt relief\
      \ for persons \nin Active Duty military service. The following protections apply to the servicing\
      \ of FHAinsured Mortgages: \n• mortgage relief; \n• termination of leases; \n• protection from eviction;\
      \ \n• 6 percent cap on interest rates; \n• stays of proceedings; and \n• reopening Default Judgments.\
      \ \n(A) Relief Provisions for the Military \nSCRA provides legal protections and debt relief for\
      \ persons in Active Duty military \nservice the criteria for which are established in 50 U.S.C.\
      \ App. § 3911. Dependents of \nservicemembers are entitled to protection in limited situations.\
      \ “Dependents” is also \ndefined in 50 U.S.C. App. § 3911. \n(B) Obligations and/or Liabilities\
      \ Prior to Entering into Active Military Service \n(1) Interest Rate Cap \nObligations or liabilities\
      \ incurred by a servicemember and/or servicemember’s \nspouse jointly before entering into active\
      \ military service must not bear \ninterest at a rate in excess of 6 percent per year during the\
      \ period of military \nservice and one year thereafter (unless superseded by updates to the SCRA\
      \ \nAct), in the case of an obligation or liability consisting of a Mortgage, trust \ndeed, or other\
      \ security in the nature of a Mortgage. \nThe Mortgagee must apply the interest rate cap if it receives\
      \ from the \nservicemember the documents listed below no later than 180 Days after the \ndate of\
      \ the servicemember’s termination or release from military service: \n• a written notice; \n• a\
      \ copy of military orders calling the servicemember to military service; \n• orders further extending\
      \ military service, if any. \n\n3. Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers\
      \ (03/31/2022) \n \n(c) Mortgagee Implementation \nThe Mortgagee must limit interest to 6 percent\
      \ per year effective the date on \nwhich the servicemember is called to military service. Only a\
      \ court may grant \nexceptions if the ability of the servicemember to pay interest upon the \nobligation\
      \ or liability at a rate in excess of 6 percent per year is not materially \naffected by being in\
      \ military service. \n(2) Reduction of Monthly Payments \nWhen interest must be reduced to 6 percent\
      \ on an FHA-insured Mortgage due to \nSCRA, the Mortgagee may calculate interest due for the period\
      \ of Active Duty on \na per diem basis or permit the lower interest rate for the entire first and\
      \ last \nmonths of service. \n(a) Mortgagee is Notified of SCRA Applicability \nWhere the servicemember\
      \ notifies the Mortgagee of their eligibility for SCRA \nprotection, the Mortgagee must: \n• advise\
      \ the servicemember or representative of the adjusted amount \ndue; \n• provide adjusted coupons\
      \ or billings; and \n• ensure reduced payments are not returned as insufficient. \n(b) Mortgagee\
      \ is Not Notified of SCRA Applicability \nWhere the servicemember does not notify the Mortgagee\
      \ of their eligibility \nfor SCRA protection and submits a reduced payment, the Mortgagee must:\
      \ \n• attempt to contact the Borrower or representative to determine whether \nthe Borrower is on\
      \ Active Duty; and \n• return insufficient payment if appropriate explanation is not provided \n\
      and otherwise in compliance with HUD guidance. \n(C) Verification of Military Service \nThe Mortgagee\
      \ may request a statement of military service from the U.S. Department \nof Defense’s Servicemembers\
      \ Civil Relief Act (SCRA) website. \nii. Postponement of Foreclosure \n(A) Reasonable Diligence\
      \ Time Frame Calculation \nWhen calculating deadlines to commence foreclosure or acquire Property\
      \ by other \nmeans, the Mortgagee may exclude the period of time when the Borrower is in Active\
      \ \nDuty military service. HUD does not consider postponement or delay in initiating a \nforeclosure\
      \ while the Borrower is Active Duty military service a failure to exercise \nreasonable diligence.\
      \ \n\n3. Programs and Products - Servicing FHA-Insured Mortgages for Servicemember-Borrowers (03/31/2022)\
      \ \n \nThe Mortgagee may voluntarily withhold foreclosure with or without applying Partial \nPayments\
      \ that advance the date of Default. \nThe Mortgagee must document any delays associated with compliance\
      \ with the \nSCRA in the Servicing File and the Claim File."
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
