Has anyone been able to confirm whether the SCRA notice required by HUD in 2006 is required for second lien mortgages? The guidance letter simply refers to "residential mortgages" but doesn't define what this includes.

In my opinion, the requirements apply to all residential mortgages regardless of the lien position. In reading the mortgagee letter I don't see where one could make the assumption that 2nd liens are exempt from the requirements.

At face value, I agree that it would seem to cover all residential loans secured by a mortgage. But every regulation comes with it's own set of definitions. Sometimes they're not what they would seem.

This supposedly comes from the Housing and Urban Development Act so I want to see if it defines this term, but I can't find the Act.

Agreed. Why would it differ?

Okay. Thanks everyone.

Have you found a specific definition for residential mortgage under the HUD Act, I cannot locate one specifically???

We are sending the notice on all residential mortgages, first and second liens, 1 to 4 primarily for personal, family or household purposes.

The actual requirement for the HUD required SCRA Notice is located at 12 U.S.C. 1701x(c)(5)(A)(iv). The SCRA notice is to be provided to the "homeowner." The following section contains the applicable definitions (12 U.S.C. 1701x(c)(6)). "Homeowner" means a person obligated under a home loan. "Home loan" means a loan secured by a mortgage or lien on residential property. "Residential property" means a one-family residence. The notice is required for second lien mortgages, but not for 2-4 family residences.

In February 2007, I spoike with HUD's National Servicing Center. According to the representative I spoke to,notification is not limited to lien status and HUD Mortgagee Letter 2006-28 states ALL mortgage loans.....There are no exemptions.