that's what i draw from this as well. i drafted a combined "regular" notice/SCRA notice which is 95% SCRA going by letters used in the document.

My take is this: It applies to any mortgage that might have rights under the SCRA. To be safe, you would likely need to send both the HUD counseling letter AND this letter stating service members rights and their exclusive 800 number when a loan is in default...maximum delay 44 days.

This can't take place of the regular HUD letter, as non-service members would not be able to use the number or the information/rights contained in this SCRA-specific letter.

anyone have the link to HUD couselling letter and number?

Just saw this thread....

I called HUD as well since their letter was a little, um, vauge. They said it should be sent to all mortgage loan customers in conjunction with the current notice, not just customers that have invoked their rights under SCRA. Also, he stated that it would go to all loans secured with a primary dwelling, regardless of lien position.

So I'm assuming (!?!?) that I could logically make a copy of Attachment 1 of HUD's Mortgage letter 2006-28 and send it with my past due letters as a second page?

yes, but be sure to include the bank's name, address, and contact information under the heading How Does a Servicemember or Dependent Request Relief under the SCRA?

Good Point!~!

Does this new notice replace the HUD Homeownership Counseling notice or is it sent in addition to the other notice?

I have looked at the Attachment 1 Page 6; does this mean you need to include that entire page? Or just a portion of that page?

under the letter issued it includes --
All mortgages loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement....

does this mean this notification could also required on business loans?

In addition to the homeownership counseling notice.

The entire page. Don't forget to complete the section ": Lender should place its name, address and contact information here)."

Note the following section of the notice (emphases mine):

What Legal Protections Are Servicemembers Entitled To Under the SCRA?

• The SCRA states that, a debt incurred by a servicemember, or servicemember and spouse jointly, prior to entering military service shall not bear interest at a rate above 6 percent during the period of military service.
• The SCRA states that, in a legal action to enforce a debt against real estate that is filed during, or within 90 days after the servicemember’s military service, a court may stop the proceedings for a period of time, or adjust the debt. In addition, the sale, foreclosure, or seizure of real estate shall not be valid if it occurs during, or within 90 days after the servicemember’s military service unless the creditor has obtained a court order approving the sale, foreclosure, or seizure of the real estate.
• The SCRA contains many other protections besides those applicable to home loans.

It appears to me that any real estate secured loan might very well fall under this notification requirement.

Are both of these notices just related to primary dwelling loans, or any loan that is secured by a 1-4 family dwelling?

Any loan secured by 1-4 family dwelling.

This is already effective, correct? I have a whole folder of info printed on this and can't seem to put my finger on the effective date.

Thanks!

Correct.

Thanks! I guess I better get this notice implemented.

FYI HUD has this out for comment with comments due by 04-03-07, Docket No. FR-5121-N-06. FR 02-02-07, Vol 72, No. 22, Pg 5071) I was confused when reading it about what it was for, and the response was that we could comment on any facet of the requirement.

Personally, so long as there wouldn't be an over-disclosure issue I'd like to see the notices combined so one could be sent meeting all the requirements. That may be worth mentioning.

Would this apply to Agriculture loans? We have a lot of farmers where we take the whole farm as collateral including the dwelling. Thanks for any guidance!

Since a farmer can be protected when called up/enlisted, sure.

The loan type we use for commercial loans secured by 1-4 family is not broken out by owner occupied or rental property. Our software company will generate the letter based only on loan types. How is everyone else handling this?

Our software is the same. We can only generate notices by loan type. We have not established different loan types for owner-occupied vs rentals. Titled mobile homes are another concern. We set up one loan type for all title secured loans -- vehicle, boats, RVs, mobile homes.

I'm also interested in how other banks are handling.

Same here, please help.