|
SCRA and Sub-6% Mortgage Loan
by Dan Persfull and Andy Zavoina, BOL Gurus
Guru Bios
Question: We have a customer that is being called up for active duty, which involves schooling for 8 weeks. He has a mortgage loan with an interest rate already below the 6% rate which is the manditory rate for the Servicemembers Civil Relief Act. Do we have to do any thing in this case?
Answer by Dan Persfull: No, but other provisions will appply such as section 303.
Answer by Andy Zavona: One thing to watch for is what the SCRA considers "interest". If, for example, a payment is late and you charge a late fee, that is "interest" for SCRA. You have to determine if that fee (or others) when added to your contractual interest exceeds 6%, which would be in violation.
First published on BankersOnline.com 1/30/06
Privacy Policy Disclaimer Recommend This Site ! Contact Us
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!