We were reviewing procedures and the topice of deceased servicemembers came up which also led to servicemembers that are listed as MIA. Since a servicemember can be listed as MIA for years how do others handle the interest rate reduction and protection from legal action, foreclosure, repossession or eviction?

I can't tell you what the regulatory stance is on this, but my moral compass says to just leave it at the 6% and keep the protections in place.

Someone just lost a father/mother/husband/wife/etc and you want to nitpick their interest rate? With rates as low as they are I can't imagine you would be losing out on all that much income.

JMHO.

CU Lady I totally agree. I have not had this come up in any SCRA exam but since it just recently came up in a procedure review dicusssion who knows what will come up in the next exam! I say leave the benefits/protections from legal action in place.

You should check state law. I'm in California and the state military code addresses MIA and soldiers who died in combat.

compliance1999 - I will make sure that CA is reviewed and the SCRA team knows what the State requirements are for a servicemember who is MIA.

Thank you!

In that MIA status could go MANY years, you may well end up with a charge-off unless the SM is declared legally dead apart from the service. Still, what collateral do you have, is it worth going after - decisions, decisions.

Compli

For CA look at the Military and Veterans Code 400-409.14 and 800-12.

From previous work as a compliance analyst for a mortgage servicer, nearly half the states have military protections that go far beyond what SCRA provides.