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#1788229 - 02/21/13 11:19 PM CitiMortgage Sued for SCRA
Andy_Z Offline
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Andy_Z
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http://www.myrtlebeachonline.com/2013/02/21/3341560/sc-based-soldier-sues-mortgage.html

If I read this right Citi says the lender paid the difference in the rate above 6% and the 12.99% contracted for. They should hope I don't sit on the jury because refunding or making up the difference isn't the same as not charging in my book.

From th SCRA - "An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicememberís spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of 6 percent per year during the period of military service.


Interesting point on the amortization. And the way they are handling the interest is incorrect, IMHO, in an effort to keep the principal high. How many loans are they doing this on, and what can this cost them? I suspect more than they're making now on these.
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AndyZ CRCM
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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#1788235 - 02/21/13 11:32 PM Re: CitiMortgage Sued for SCRA Andy_Z
Andy_Z Offline
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Andy_Z
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I suppose Citi may be interpreting this section as their cause, but I disagree with it. I hope they can make a strong case.

"The
amount of any periodic payment due from a servicemember
under the terms of the instrument that created an obligation
or liability covered by this section shall be reduced by the
amount of the interest forgiven under paragraph (2) that is
allocable to the period for which such payment is made."

I believe the section I first quoted takes precedence.
_________________________
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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