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#2182671 - 06/21/18 07:48 PM SCRA - Interest Refund Calculation
TeamComply Offline
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Joined: Aug 2016
Posts: 540
Does anyone have a tool (e.g. an excel spreadsheet they use) to calculate the interest refund amount or the interest that should have been paid based on 6% rate to compare back to the actual loan payment history (based on the borrower's initial higher interest rate)? Thanks.

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2182721 - 06/22/18 12:29 PM Re: SCRA - Interest Refund Calculation TeamComply
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
Most LOS systems provide for backdating an interest rate and the re-application of payments - not sure why you need a separate calculator.
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#2182859 - 06/22/18 09:06 PM Re: SCRA - Interest Refund Calculation TeamComply
Andy_Z Offline
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I do not, but it's PxRxT, Principal x Rate x Time and know if you're looking at actual-365, or 30-360, or something else specified in your Note.

I can tell you that the letter of the law, literally, is under Sec. 3937(a)(3). "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."

This paragraph says that you will review each periodic payment and forgive the interest accrual which exceeds 6 percent. PxRxT.

I can see doing this in your audit process to verify what was done,
Last edited by Andy Z; 06/22/18 09:09 PM.
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