Past Due Notices Sent for HUD-SCRA Compliance

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Question:

Our system currently allows three types of past due notices to be sent for HUD. The three selections are HUD only, SCRA only, and then HUD-SCRA combined. With that said, we are wondering if SCRA should be sent to all other loans as the first part of our collection/repossession process? I understand this isn't a requirement. I am just trying to see if this would be a best practice for our first line of defense for SCRA compliance. Thanks so much!

Answer:

The question that needs answering is, will Military OneSource who provides financial counseling on the home your loan is about do the same for all other loans, and will they continue to do so or notify you if they stop? If that isn't the case the bank could increase its costs and only mislead consumers. I would not go that extra mile.