Lender Processing Services’ (LPS) Military Service Relief (MSR) now allows servicers to recognize and process loans protected under the Servicemembers Civil Relief Act (SCRA) while providing a way to protect against foreclosing on military personnel. The SCRA disallows mortgage servicers to foreclose on or seize property from active-duty military personnel who are unable to pay their mortgage. Foreclosure protection will last up to 9 months after their active duty has ended. The new law will also allow service members to quality for interest rate limits.
LPS states, “future MSR enhancements will deliver additional functionality related to default and credit bureau reporting, as well as reconciliation of advances”.