Thread Options
#813956 - 09/12/07 06:22 PM 6% notice received on loan #1, what about loan #2
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,620
we have a borrower with 2 loans - we received the proper notice requesting 6% max interest rate relief on loan #1. The borrower didn't mention loan #2. I think we have to reduce the rate on loan #2 also - we have the proper notice they are now in military - they just didn't mention the 2nd loan.
What do you think?
My views, not my employer's views.

Return to Top
Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#813964 - 09/12/07 06:29 PM Re: 6% notice received on loan #1, what about loan #2 Burgess
ktac MITCH Offline
Diamond Poster
ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
I say yes. The bank has knowledge that the borrower is covered under SCRA (proof of orders or whatever your bank requires) therefore the borrower has done what they should & the bank then must comply with SCRA. Not applying their rights because of an oversight on their part - very bad PR.
My opinions are just that, and might be worth what you paid for them.

Return to Top
#813990 - 09/12/07 06:54 PM Re: 6% notice received on loan #1, what about loan #2 ktac MITCH
La. Lady Offline
Diamond Poster
La. Lady
Joined: May 2001
Posts: 1,873
Yes you do need to reduce Loan #2's rate.
Riding the waves of change.....2014

Return to Top
#815586 - 09/14/07 05:28 PM Re: 6% notice received on loan #1, what about loan #2 La. Lady
Andy_Z Offline
10K Club
Joined: Oct 2000
Posts: 27,468
On the Net
I don't think you are obligated to if the request you received was specific as to loan no. 1. That said, remember the SM could come back later and ask for that protection retroactively. Personally, I'd send them a cordial letter thanking them for the request, their service and I would denote that you have applied these protections against BOTH loans. If for some reason they don't want the second loan included, they should notify you.

I assume both loans are such that they are covered and one wasn't entered into after entering the service. It could also be that someone else is making the payments on that loan and the SM didn't feel protections were needed. (Example - John joins the military. Gives his car to his brother to use and pay for while he is gone. He didn't think 6% was needed. Who knows?)
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top

Moderator:  Andy_Z