A lender discovers that a borrower qualified for SCRA interest rate reduction two years ago but never received it. What must the lender do?
Correct Answer
B) Provide a refund of excess interest charged and apply reduction going forward
Under SCRA Section 207, the interest rate reduction is retroactive to the beginning of military service. Lenders must refund any excess interest charged above 6% from the start of service and apply the correct rate going forward.
Why This Is the Correct Answer
Under SCRA Section 207, the interest rate reduction is retroactive to the beginning of military service. Lenders must refund any excess interest charged above 6% from the start of service and apply the correct rate going forward.
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Two mortgage companies create a joint venture to provide settlement services, with each company owning 50% and referring their borrowers to the joint venture. To comply with RESPA Section 8 AfBA requirements: