Servicemembers Civil Relief Act Notice

Posted By: Tessie

Servicemembers Civil Relief Act Notice - 07/27/11 04:29 PM

So I'm confused on this notice. When and who do we give this notice to?
Posted By: Y'all Comply

Re: Servicemembers Civil Relief Act Notice - 07/27/11 05:37 PM

The notice must be sent to delinquent borrowers within 45 days after the missed due date of a mortgage loan payment.

Only servicemembers and their dependents can use the protections of the SCRA, but this notice should go to all borrowers so that a lender can reach dependents, too.

That means for all mortgage loan payments that are delinquent, notices must be sent within 45
days before collections can begin.
Posted By: John Burnett

Re: Servicemembers Civil Relief Act Notice - 08/01/11 09:00 PM

Besides, for many of your mortgage loans, you may not know whether the borrowers are service members.
Posted By: Beth175

Re: Servicemembers Civil Relief Act Notice - 08/04/11 03:38 PM

Is this limited to consumer accounts or are we required to send it on the commercial mortgages also as a servicemember could be the owner or guarantor?
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 08/04/11 11:26 PM

Go back to ML 2006-28

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.

http://www.bankersonline.com/tools/hud_scra2006-28.pdf
Posted By: Beth175

Re: Servicemembers Civil Relief Act Notice - 08/10/11 01:48 PM

How is anyone identifying a commercial mortgage that is secured by a principal dwelling rather than a commercial property? Our system does not allow us to easily identify these loans so we are only sending the notice on consumer 1-4 family secured loans. Any suggestions are welcome!
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 08/17/11 02:33 PM

Been out of the actual bank too long, but as I recall it was all about collateral codes programmed on the system.

If you have many (perhaps any) of these, I'd sure find a solution.
Posted By: KatieL

Re: Servicemembers Civil Relief Act Notice - 08/19/11 04:26 PM

I just had to clean this up recently. We pulled a report of all of our 1-4 family collateral codes and turned on the HUD & SCRA Notice for all of them. So, now if a commerical loan customer has 12 different pieces of collateral on their loan, our system would have 12 collateral "addendas". If one of addenda has a 1-4 family dwelling collateral code, they get the notice. Our system sends a combo HUD/Counseling notice & SCRA Notice it at 30 days past due.
Our auditor said it's much better to send it out to send it out on loans it may not apply to, then to miss any it would apply to. Hope that helps!
Posted By: sunnyflowers

Re: Servicemembers Civil Relief Act Notice - 08/24/11 08:06 PM

We are sending the required notice on delinquent mtgs.....but is there a notice that should be given at time of loan applications?
Posted By: sunnyflowers

Re: Servicemembers Civil Relief Act Notice - 08/24/11 08:12 PM

We are sending the required notice on delinquent mtgs.....but is there a notice that should be given at time of loan applications?
Posted By: Phoenix

Re: Servicemembers Civil Relief Act Notice - 08/25/11 01:44 PM

for payday and car title and tax refund anticipation type loans, yes. the notice is a declaration that the borrower is not covered under the John Warner Defense Act; i.e. is not active duty or a dependent of someone who is.
Posted By: dnau

Re: Servicemembers Civil Relief Act Notice - 02/03/12 07:08 PM

I went out to HUDs website to review the notice and it is a little different than Banksonline
http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13065.pdf
http://www.bankersonline.com/tools/hud_scra2006-28.pdf
can I use either one-phone #s are same?
Posted By: John Burnett

Re: Servicemembers Civil Relief Act Notice - 02/03/12 08:59 PM

Actually, BOL has a later version of the form available at http://www.bankersonline.com/tools/lender/hud_scra.html

The one you linked to is a 2006 version.
Posted By: jross

Re: Servicemembers Civil Relief Act Notice - 03/07/12 09:06 PM

Are we required to send the HUD form or just the information on the form?
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 03/09/12 04:35 PM

I have not seen that the format is required, just the information on it. If you combined it with other materials and it was "lost" so to speak, you could be subject to criticism. But having the content on your own page in a different style shouldn't be an issue.
Posted By: compliancequeeni

Re: Servicemembers Civil Relief Act Notice - 08/13/13 09:56 PM

Do the SCRA and HUD notices need to be sent to guarantors of business loans where residential primary dwellings are used as collateral? And does a person supplying the collateral, but not a signer on the loan need to be sent a SCRA and HUD notice if a business loan is deliquent?
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 08/19/13 04:44 PM

All mortgage loans, including conventional mortgages and mortgages insured by HUD are subject to the notification requirement. The notice must:
1 Be sent to all homeowners who are in default on a residential mortgage;
2 Include the toll-free Military OneSource number; and
3 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.

1 tells us a homeowner who is in default on the qualified loan.
Posted By: Help!!!

Re: Servicemembers Civil Relief Act Notice - 02/21/14 07:23 PM

Is the notice required to be sent one time or do you continue to resend the notice every 45 days until the loan is brought current or you take other action?
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 02/25/14 05:49 PM

If they pay current and fall 45 days again, re-send.
Posted By: fnblikdd

Re: Servicemembers Civil Relief Act Notice - 03/11/14 06:49 PM

Where is it documented that we re-send every time the borrower is delinquent (If they pay current and fall 45 days again, re-send.)?

I am reviewing our Collection procedure and we have it documented that this is a one-time only notice. It makes more sense that it should be re-sent at each occurrence. Just want to have all of my ducks in a row before I request that the procedure be updated.
Posted By: Kathleen O. Blanchard

Re: Servicemembers Civil Relief Act Notice - 03/12/14 03:32 AM

Nowhere does the regulation state that this is a one time notice. It is sent when the borrower is past due 45 days. That can happen more than once over the life of a loan.
Posted By: Dan Persfull

Re: Servicemembers Civil Relief Act Notice - 03/13/14 05:07 PM

From HUD's Web site by doing a Google search:

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, SCRA Notice Disclosure). 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 one-source 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.


If the homeowner is in default the notice must be sent. So if the loan is paid current and becomes default once again the notice must be sent again within 45 days.
Posted By: Kathleen O. Blanchard

Re: Servicemembers Civil Relief Act Notice - 03/15/14 02:25 AM

Yes, which makes me wonder why anyone would think this is a one time notice.
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 03/17/14 11:07 AM

One time per delinquent event maybe, but it's good that you can get that fixed now, especially since examiners are reviewing SCRA at a deeper level now.
Posted By: Midwest123

Re: Servicemembers Civil Relief Act Notice - 04/21/14 04:02 PM

Wanted to double check.......

The borrower goes delinquent and we send out the notices within 45 days of the missed payment. Let's say they do not come current by the following payment due date, we need to start another 45 day count and send another notice even though they have not come back to current correct?

Ex. I am 3 months behind on my payments and haven't become current during that time. Should I receive 3 separate copies of the notices for those 3 months?

Thanks in advance.
Posted By: 3-2-Go

Re: Servicemembers Civil Relief Act Notice - 09/10/14 07:42 PM

For Payday/car title loans, the disclosure that is required at application. How is everyone disclosing this? On application or separate notice?
Posted By: rlcarey

Re: Servicemembers Civil Relief Act Notice - 09/10/14 10:06 PM

Well, I don't think you are going to get many responses as most commercial banks don't make these sorts of loans.
Posted By: Andy_Z

Re: Servicemembers Civil Relief Act Notice - 09/13/14 07:42 PM

If a bank was doing them, I would vote for a separate notice as it wouldn't be a typical product offered, IMHO.
Posted By: Breeco

Re: Servicemembers Civil Relief Act Notice - 04/27/17 08:10 PM

So it doesn't appear this question was answered? Any thoughts, as we are having the examiners tell us that it has to be sent out at 60/90/120 delinquency as well even though the HUD Handbook and the citation do not indicate that it has to be delivered more than once during any default event.

We also understand that if the loan becomes current and then past dueagain; it would need to be sent again. Everyone I talked to doesn't provide the notice more than once during a default event unless their system puts it on all past due notices [even non-mortgages] just because it's easier to do it that way.
Posted By: rlcarey

Re: Servicemembers Civil Relief Act Notice - 04/27/17 09:41 PM

I think you are talking about a different notice,

However, show them 12 USC 1701x(c)(5). The notice is required to be delivered before the expiration of the 45-day period beginning on the date on which an eligible homeowner who fails to pay any amount by the date the amount is due under a home loan. Sending the notice again at 60/90/120 delinquency is long after the horse has left the barn.

Have them give you a citation or guidance document that says otherwise.
Posted By: Breeco

Re: Servicemembers Civil Relief Act Notice - 05/09/17 07:16 PM

Thanks for responding Randy, I think I had to many windows open and posted on the wrong one.

Re: SCRA HUD-92070 Notice - We did reference the citation, but their internal consultants are not interpreting it that way.
Posted By: rlcarey

Re: Servicemembers Civil Relief Act Notice - 05/09/17 07:28 PM

Somebody needs new consultants.

https://hudgov.prod.parature.com/link/po...-of-delinquency