Hi - auditing SCRA and trying to clarify a few things.

Are investment properties(non-owner occupied) covered by SCRA?
Are any Commercial Loans covered by SCRA?

Thank you!

I am unaware of any differentiation in the SCRA that would alter coverage.

§ 3913. Protection of persons secondarily liable.

[Section 103 of the Act]

(a) EXTENSION OF PROTECTION WHEN ACTIONS STAYED, POSTPONED, OR SUSPENDED- Whenever pursuant to this chapter a court stays, postpones, or suspends (1) the enforcement of an obligation or liability, (2) the prosecution of a suit or proceeding, (3) the entry or enforcement of an order, writ, judgment, or decree, or (4) the performance of any other act, the court may likewise grant such a stay, postponement, or suspension to a surety, guarantor, endorser, accommodation maker, comaker, or other person who is or may be primarily or secondarily subject to the obligation or liability the performance or enforcement of which is stayed, postponed, or suspended.

a) INTEREST RATE LIMITATION-

(1) LIMITATION TO 6 PERCENT- 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 servicemember's spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of 6 percent --

(2) OBLIGATION OR LIABILITY.—The term ‘obligation or liability’ includes an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage.


If the servicemember is liable on the debt then it is covered.

For residential properties purchased solely for investment purposes - are we required to send out the SCRA notice? Part of the reason I ask is because the system we use is set to only generate the SCRA notice on 1-4 family owner-occupied loans. It does not print on "investment" properties or apartment buildings.

So do we have to extend those types of loans SCRA protections, but not send out the notice - because it is not a residential mortgage?

Any single family home regardless of the purpose of the loan.

12 USC 1701x(c)(6) Definitions For purposes of this subsection:
(A) The term “creditor” means a person or entity that is servicing a home loan on behalf of itself or another person or entity.

(B) The term “eligible homeowner” means a homeowner eligible for counseling under paragraph (4).

(C) The term “home loan” means a loan secured by a mortgage or lien on residential property.

(D) The term “homeowner” means a person who is obligated under a home loan.

(E) The term “residential property” means a 1-family residence, including a 1-family unit in a condominium project, a membership interest and occupancy agreement in a cooperative housing project, and a manufactured home and the lot on which the home is situated.