SCRA Protection – multiple and commercial loans

Compliance > Lending > Service Members > SCRA
Q:  If a service member requests a rate reduction on “my mortgage loan(s)” or “my obligations” or even one specific loan in cases where he or she holds multiple loans with the creditor, are all loans held with the creditor covered?
 
A:  Section 527 of the SCRA, which establishes the maximum interest rate, addresses any “obligation or liability” of an eligible service member, or the service member and the service member’s spouse jointly, as long as the loan was made before the service member entered active duty. When a service member provides a written request and a copy of the military orders to a lender, the lender should apply the 6 percent rate reduction to all loans with the lender made before the service member entered active duty. Loans for commercial purposes are not excluded from SCRA protections.
 
 
ADDITIONAL INFORMATION – This Q&A was released by the Federal Reserve Board, in follow up to their Servicemember Financial Protection Webinar that was presented on September 10, 2012 - https://www.consumercomplianceoutlook.org/2013/first-quarter/servicemember-financial-protection-webinar/
 

Add Feedback