Service Members Civil Relief Act 1/24/04 WASHINGTON, D.C. (Mortgage Bankers Association) – The Office of Thrift Supervision on Tuesday reminded thrift institutions of several key provisions of the Servicemembers Civil Relief Act (SCRA) that President Bush signed into law on Dec. 19. The SCRA updates and replaces the Soldiers and Sailors Civil Relief Act of 1940 (SSCRA). The SCRA enhances protections available to servicemembers on active duty. It applies to any case that was not final before the date of enactment. * The Act retains the 6 percent cap on interest rates for obligations incurred by a servicemember before entering military service applicable under the SSCRA. The Act explicitly states that any amount of interest above 6 percent is forgiven, not deferred. * The Act extends eviction protections to cover units renting for $2,400 or less (double the current limit). Starting in 2004, the cap is adjusted for inflation. * Servicemembers may terminate residential leases (now including those executed after entering military service) and, for the first time, motor vehicle leases. For a residential lease, the servicemember may terminate a lease executed before entering military service or afterwards, if the member receives a permanent duty change order or is deployed for at least 90 days. * A servicemember may waive any rights and protections under the Act, in writing, but only during or after the servicemember’s period of military service. No waiver is permitted before service. The Mortgage Bankers Association encourages lenders to work with legal counsel or trade groups to ensure compliance. There are additional provisions that may be relevant.