A lender receives an SCRA interest rate reduction request from a servicemember 18 months after the servicemember was discharged from active duty. The mortgage was originated before active duty began. How should the lender respond?
Correct Answer
B) Deny the request because it was not made during the period of military service
Under SCRA Section 207, the request for interest rate reduction must be made during the period of military service, not after discharge. The protection applies to obligations incurred before military service, but the request must be timely made while still on active duty.
Why This Is the Correct Answer
Under SCRA Section 207, the request for interest rate reduction must be made during the period of military service, not after discharge. The protection applies to obligations incurred before military service, but the request must be timely made while still on active duty.
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