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
A) 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.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
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A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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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: