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#1583799 - 07/27/11 04:29 PM Servicemembers Civil Relief Act Notice
Tessie Offline
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So I'm confused on this notice. When and who do we give this notice to?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1583859 - 07/27/11 05:37 PM Re: Servicemembers Civil Relief Act Notice Tessie
Y'all Comply Offline
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The notice must be sent to delinquent borrowers within 45 days after the missed due date of a mortgage loan payment.

Only servicemembers and their dependents can use the protections of the SCRA, but this notice should go to all borrowers so that a lender can reach dependents, too.

That means for all mortgage loan payments that are delinquent, notices must be sent within 45
days before collections can begin.
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#1586086 - 08/01/11 09:00 PM Re: Servicemembers Civil Relief Act Notice Y'all Comply
John Burnett Offline
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Besides, for many of your mortgage loans, you may not know whether the borrowers are service members.
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#1587555 - 08/04/11 03:38 PM Re: Servicemembers Civil Relief Act Notice John Burnett
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Is this limited to consumer accounts or are we required to send it on the commercial mortgages also as a servicemember could be the owner or guarantor?

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#1588034 - 08/04/11 11:26 PM Re: Servicemembers Civil Relief Act Notice Beth175
Andy_Z Offline
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Go back to ML 2006-28

All mortgage loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement that became effective June 5, 2006. The notice must:
Be sent to all homeowners who are in default on a residential mortgage;
Include the toll-free Military OneSource number to call if servicemembers or their dependents require further assistance (1-800-342-9647); and
Be made within 45 days from the date a missed payment was due, unless the homeowner pays the overdue amount before the expiration of the 45-day period.

http://www.bankersonline.com/tools/hud_scra2006-28.pdf
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#1589979 - 08/10/11 01:48 PM Re: Servicemembers Civil Relief Act Notice Andy_Z
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How is anyone identifying a commercial mortgage that is secured by a principal dwelling rather than a commercial property? Our system does not allow us to easily identify these loans so we are only sending the notice on consumer 1-4 family secured loans. Any suggestions are welcome!

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#1592856 - 08/17/11 02:33 PM Re: Servicemembers Civil Relief Act Notice Beth175
Andy_Z Offline
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Been out of the actual bank too long, but as I recall it was all about collateral codes programmed on the system.

If you have many (perhaps any) of these, I'd sure find a solution.
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#1594225 - 08/19/11 04:26 PM Re: Servicemembers Civil Relief Act Notice Andy_Z
KatieL Offline
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I just had to clean this up recently. We pulled a report of all of our 1-4 family collateral codes and turned on the HUD & SCRA Notice for all of them. So, now if a commerical loan customer has 12 different pieces of collateral on their loan, our system would have 12 collateral "addendas". If one of addenda has a 1-4 family dwelling collateral code, they get the notice. Our system sends a combo HUD/Counseling notice & SCRA Notice it at 30 days past due.
Our auditor said it's much better to send it out to send it out on loans it may not apply to, then to miss any it would apply to. Hope that helps!
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#1596040 - 08/24/11 08:06 PM Re: Servicemembers Civil Relief Act Notice KatieL
sunnyflowers Offline
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We are sending the required notice on delinquent mtgs.....but is there a notice that should be given at time of loan applications?

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#1596047 - 08/24/11 08:12 PM Re: Servicemembers Civil Relief Act Notice KatieL
sunnyflowers Offline
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We are sending the required notice on delinquent mtgs.....but is there a notice that should be given at time of loan applications?

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#1596325 - 08/25/11 01:44 PM Re: Servicemembers Civil Relief Act Notice sunnyflowers
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for payday and car title and tax refund anticipation type loans, yes. the notice is a declaration that the borrower is not covered under the John Warner Defense Act; i.e. is not active duty or a dependent of someone who is.
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#1660561 - 02/03/12 07:08 PM Re: Servicemembers Civil Relief Act Notice Tessie
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I went out to HUDs website to review the notice and it is a little different than Banksonline
http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13065.pdf
http://www.bankersonline.com/tools/hud_scra2006-28.pdf
can I use either one-phone #s are same?

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#1660682 - 02/03/12 08:59 PM Re: Servicemembers Civil Relief Act Notice Tessie
John Burnett Offline
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Actually, BOL has a later version of the form available at http://www.bankersonline.com/tools/lender/hud_scra.html

The one you linked to is a 2006 version.
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#1674623 - 03/07/12 09:06 PM Re: Servicemembers Civil Relief Act Notice Tessie
jross Offline
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Are we required to send the HUD form or just the information on the form?
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#1675650 - 03/09/12 04:35 PM Re: Servicemembers Civil Relief Act Notice Tessie
Andy_Z Offline
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I have not seen that the format is required, just the information on it. If you combined it with other materials and it was "lost" so to speak, you could be subject to criticism. But having the content on your own page in a different style shouldn't be an issue.
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#1842268 - 08/13/13 09:56 PM Re: Servicemembers Civil Relief Act Notice Tessie
compliancequeeni Offline
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Do the SCRA and HUD notices need to be sent to guarantors of business loans where residential primary dwellings are used as collateral? And does a person supplying the collateral, but not a signer on the loan need to be sent a SCRA and HUD notice if a business loan is deliquent?

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#1843645 - 08/19/13 04:44 PM Re: Servicemembers Civil Relief Act Notice Tessie
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All mortgage loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement. The notice must:
1 Be sent to all homeowners who are in default on a residential mortgage;
2 Include the toll-free Military OneSource number; and
3 Be made within 45 days from the date a missed payment was due, unless the homeowner pays the overdue amount before the expiration of the 45-day period.

1 tells us a homeowner who is in default on the qualified loan.
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#1899005 - 02/21/14 07:23 PM Re: Servicemembers Civil Relief Act Notice Tessie
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Is the notice required to be sent one time or do you continue to resend the notice every 45 days until the loan is brought current or you take other action?

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#1899746 - 02/25/14 05:49 PM Re: Servicemembers Civil Relief Act Notice Tessie
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If they pay current and fall 45 days again, re-send.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#1904283 - 03/11/14 06:49 PM Re: Servicemembers Civil Relief Act Notice Andy_Z
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Where is it documented that we re-send every time the borrower is delinquent (If they pay current and fall 45 days again, re-send.)?

I am reviewing our Collection procedure and we have it documented that this is a one-time only notice. It makes more sense that it should be re-sent at each occurrence. Just want to have all of my ducks in a row before I request that the procedure be updated.

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#1904409 - 03/12/14 03:32 AM Re: Servicemembers Civil Relief Act Notice Tessie
Kathleen O. Blanchard Offline

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Nowhere does the regulation state that this is a one time notice. It is sent when the borrower is past due 45 days. That can happen more than once over the life of a loan.
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#1905065 - 03/13/14 05:07 PM Re: Servicemembers Civil Relief Act Notice Tessie
Dan Persfull Offline
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From HUD's Web site by doing a Google search:

Pursuant to the statutory amendment, HUD has developed, in consultation with the Departments of Defense and Treasury, the form for the required notice of servicemember rights (Attachment 1, SCRA Notice Disclosure). All mortgage loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement that became effective June 5, 2006. The notice must:

Be sent to all homeowners who are in default on a residential mortgage;
Include the toll-free military one-source number to call if servicemembers or their dependents require further assistance (1-800-342-9647); and
Be made within 45 days from the date a missed payment was due, unless the homeowner pays the overdue amount before the expiration of the 45-day period.


If the homeowner is in default the notice must be sent. So if the loan is paid current and becomes default once again the notice must be sent again within 45 days.
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#1905738 - 03/15/14 02:25 AM Re: Servicemembers Civil Relief Act Notice Tessie
Kathleen O. Blanchard Offline

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Yes, which makes me wonder why anyone would think this is a one time notice.
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Kathleen O. Blanchard, CRCM "Kaybee"
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The HMDA Academy
www.kaybeescomplianceinsights.com

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#1905772 - 03/17/14 11:07 AM Re: Servicemembers Civil Relief Act Notice Tessie
Andy_Z Offline
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One time per delinquent event maybe, but it's good that you can get that fixed now, especially since examiners are reviewing SCRA at a deeper level now.
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My opinions are not necessarily my employers.
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#1916163 - 04/21/14 04:02 PM Re: Servicemembers Civil Relief Act Notice Tessie
Midwest123 Offline
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Wanted to double check.......

The borrower goes delinquent and we send out the notices within 45 days of the missed payment. Let's say they do not come current by the following payment due date, we need to start another 45 day count and send another notice even though they have not come back to current correct?

Ex. I am 3 months behind on my payments and haven't become current during that time. Should I receive 3 separate copies of the notices for those 3 months?

Thanks in advance.

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