Bank is renewing a mortgage loan to a servicemember. Are we required to abide by the interest rate limitation of 6%? The date of the original loan is Dec. 2007 (which is prior to the enactment date of July 30, 2008 for the SCRA). Since this loan renewal is taking place after the servicemember entered military service does the rate limitation apply? Thanks.

Here is the rub, many lenders tried to force servicemembers into renewals even by enticing them with a small increase amount. They were scolded for defeating the purpose and intent of the law.

I'm not sure what you mean by "(which is prior to the enactment date of July 30, 2008 for the SCRA)." Prior to what w now know as the SCRA there was the SSCRA which provided many of the same protections, including the 6% rule. This law actually goes back to 1918.

If the loan was coming due and has matured, could you get away with a renewal at today's rate, possibly. Can the borrower afford it? The real answer may be to RN it at the market rate, but still give them the 6% protection while they're active duty. That way if they are discharged you revert to the market rate.

Question concerning renewal:

Customer is deployed, loan matures 7-5-11. Customer has not way to get us signed docs by that date. Anyway to renew this loan that anyone can think of?

POA

Send the docs for signature, paper or e-form. If desired any commissioned officer can notarize them. You have signatures to compare them to.

E-Sign

It depends on where your customer is. Some Skype with family every day so they are connected and not always in the boonies.