We have a customer who has applied for relief under SSCRA. The customer has a line of credit with two payments remaining; one is a regular payment and the other is a balloon payment. The current interest rate is 5.75%, which is below the 6% limit. I know the spirit of the act is to lower the rate, thereby lowering the payment while the customer is on active duty. My question is, if the loan is within two months of reaching maturity with a large balloon payment remaining, what steps are we required to take?

My current thought is that we are in compliance with the Act, but as a customer service issue, we may want to refinance the balloon payment at the current 5.75% rate. I would like to know if anyone has had a similar situation, or what anyone may recommend.

Thanks for your thoughts.

What relief has the customer requested? Rate reduction is N/A, so it must be forebearance. This does not translate into refinance of the balloon, just relief from collection efforts.