A borrower enters military service after obtaining a mortgage. When must the lender reduce the interest rate to the SCRA maximum?
Correct Answer
A) Immediately upon notification of military service
Under SCRA Section 207, the interest rate reduction is effective immediately upon the servicemember entering military service, not when the lender receives notice. The reduction is retroactive to the date military service began.
Why This Is the Correct Answer
Under SCRA Section 207, the interest rate reduction is effective immediately upon the servicemember entering military service, not when the lender receives notice. The reduction is retroactive to the date military service began.
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A mortgage broker discovers that their computer system has been logging and storing customers' Social Security numbers in plain text in system backup files that are accessible to IT staff who don't normally handle customer information. Under GLBA's Safeguards Rule, this situation represents:
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A borrower wants to waive their right of rescission to expedite their refinance closing. Under what circumstances can this be done?