OCC Revises SCRA Handbook: Key Changes for Banks

ByRoy L. Kaufmann Hours
Compliance document with pen, gavel, and eyeglasses on desk.
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The U.S. Office of the Comptroller of the Currency issued version 1.1 of the “Servicemembers Civil Relief Act” booklet, which forms part of the Comptroller’s Handbook and serves as a primary regulatory reference for most financial institutions.

The Handbook is closely monitored by banks and other financial institutions because it guides bank examiners in evaluating consumer protections extended to servicemembers—and, in some cases, their family members—under the Servicemembers Civil Relief Act.

Specifically, the new version:

  • Applies the OCC’s risk-based supervision approach to assessing compliance with the SCRA.
  • Eliminates the prior OCC policy requirement to conduct an SCRA examination with transaction testing at least once every three supervisory cycles.
  • Clarifies language on servicemember verification and the distribution of excess payments.
  • Removes references to reputation risk (see OCC Bulletin 2025-4, “Bank Supervision: Removing References to Reputation Risk”).
Roy L. Kaufmann
Founder of SCRACVS, brings over 15 years of experience in military law and technology. His legal expertise and dedication to serving active duty members drive the platform’s mission to deliver accurate, reliable military status verifications with confidentiality and ease for law firms and businesses alike.