A servicemember on active duty has their mortgage servicing transferred to a new company. The new servicer is unaware of the existing SCRA interest rate reduction. What is the servicemember's obligation?
Correct Answer
C) The servicemember must provide notice and documentation to the new servicer
Under SCRA Section 207, while the protection continues regardless of servicing transfers, the servicemember has the practical obligation to notify the new servicer of existing SCRA protections and provide appropriate documentation to ensure continued compliance.
Why This Is the Correct Answer
Under SCRA Section 207, while the protection continues regardless of servicing transfers, the servicemember has the practical obligation to notify the new servicer of existing SCRA protections and provide appropriate documentation to ensure continued compliance.
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For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
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A borrower receives a Loan Estimate showing a total of loan costs of $8,000. At closing, the actual total loan costs are $8,500. Under TILA tolerance rules, what is the maximum amount the borrower can be charged without triggering a cure requirement?