SSCRA Interest Loss To Be Reimbursed
by Sam Ott, Esq.
In a major change in policy, HUD Secretary Martinez announced the immediate implementation of a GNMA interest reimbursement program for mortgage lenders who have interest shortfalls for mortgage loans of Reservists and National Guard personnel called to active duty anywhere domestically or abroad.
Previously, the reimbursement program applied only if the borrower was called to active duty in a specified area. In addition, the policy change is retroactive to September 11, 2001. HUD estimates lenders will save $6 million annually as a result of the program.
As of October 23, 2001 the U.S. Department of Defense reported there were 58,133 National Guard and Reserve personnel on active duty.
In the event of a full-scale buildup in preparation for war with Iraq, some analysts estimate the U.S .would need to call up tens of thousands more reservists.
BOL has created a one stop page http://www.bankersonline.com/lending/sscrapage.html regarding SCCRA which allows you to access Exclusive Articles, Questions and Answers, Threads from BOL Bankers’ Threads, links to Regulator Information and the Text of the Soldiers’ and Sailors’ Civil Relief Act of 1940.
Watch your email for announcements regarding a special Net learning event December 11, 2002 "Get Your SSCRA Marching Orders", a two hour review of financial institution responsibilities under the Soldiers' and Sailors' Civil Relief Act.
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