We have a new borrower that advised he will be active duty.

The loan rate is under 6%. We've flagged the account appropriately.

As we will not be making any changes to rates/pmts, do we need to send any kind of acknowledgment to the borrower....nothing is really changing on the account.

No. But, does he understand his rate won't go any lower? I would give him the courtesy to know that in case he doesn't.

You also need to keep in mind that the 6% limitation does not apply only to the interest rate. It applies to all charges that would be considered interest under the regulation.

(1) INTEREST.—The term ‘interest’ includes service charges, renewal charges, fees, or any other charges (except bona fide insurance) with respect to an obligation or liability.

Thank you both.