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#2171871 - 04/04/18 05:43 PM SCRA
newyork Offline
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Joined: Aug 2008
Posts: 450
Is SCRA applicable to Non Real Estate loans, either commercial or consumer?

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2171893 - 04/04/18 06:16 PM Re: SCRA newyork
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,364
Galveston, TX
If you are referring to the interest rate limitation - yes.

Section 3937 (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 --

(A) during the period of military service and one year thereafter, in the case of an obligation or liability consisting of a mortgage, trust deed, or other security in the nature of a mortgage; or

(B) during the period of military service, in the case of any other obligation or liability.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2171915 - 04/04/18 07:15 PM Re: SCRA newyork
newyork Offline
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Joined: Aug 2008
Posts: 450
ok, so the HUD notice that was updated yesterday, it applies to real estate and non real estate loans?

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#2171922 - 04/04/18 07:46 PM Re: SCRA newyork
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,364
Galveston, TX
No
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2172410 - 04/06/18 08:16 PM Re: SCRA newyork
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,750
On the Net
The HUD SCRA notice is about helping servicemembers save their homes. This was the first part of the HUD Mortgagee Letter 2006-28 on this:

This Mortgagee Letter provides information regarding a new legal requirement to notify homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents under the Servicemembers Civil Relief Act (SCRA). It also provides guidance regarding the implementation of SCRA requirements in servicing FHA-insured mortgages. This guidance supersedes prior Mortgagee letters ML 2003-04, Soldiers’ and Sailors’ Civil Relief Act and ML 01-22, The Effect of the Soldiers’ and Sailors’ Civil Relief Act of 1940 on FHA Insured Mortgages. However, the guidance provided in ML 91-20, Effect of the Soldiers’ and Sailors’ Civil Relief Act of 1940 on FHA Insured Mortgages remains valid with respect to the calculation of Section 235 subsidy.

Section 688 of the National Defense Authorization Act for Fiscal Year 2006 (public law
109-163, enacted January 6, 2006) amended the required content of notifications of homeownership counseling availability under section 106(c)(5)(A)(ii) of the Housing and Urban Development Act (12 U.S.C. 1701x(c)(5)(A)(ii)) and directed HUD to develop and disseminate a format for the required notice.

Servicemembers Civil Relief Act Notice

Pursuant to the statutory amendment, HUD has developed, in consultation with the Departments of Defense and Treasury, the form for the required notice of servicemember rights (Attachment 1). All mortgage loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement that became effective June 5, 2006. The notice must:

• Be sent to all homeowners who are in default on a residential mortgage;
• Include the toll-free Military OneSource number to call if servicemembers or their dependents require further assistance (1-800-342-9647); and
• Be made within 45 days from the date a missed payment was due, unless the homeowner pays the overdue amount before the expiration of the 45-day period.
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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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#2209361 - 03/25/19 01:40 PM Re: SCRA Andy_Z
vdavis Offline
New Poster
Joined: Mar 2019
Posts: 13
Safe deposit boxes are protected under the SCRA rules, is there a notice similar to HUD that i can use to notify customers who are in default on safe deposit rental. Please let me know.

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