A servicemember receives a permanent change of station (PCS) order requiring them to sell their home. The mortgage has an early payment penalty clause. Under the SCRA, what protection applies?
Correct Answer
D) No specific SCRA protection applies to early payment penalties
The SCRA does not specifically address early payment penalties on mortgages. While Section 207 provides interest rate protections and other sections address foreclosure stays, there is no provision requiring lenders to waive prepayment penalties for military moves.
Why This Is the Correct Answer
The SCRA does not specifically address early payment penalties on mortgages. While Section 207 provides interest rate protections and other sections address foreclosure stays, there is no provision requiring lenders to waive prepayment penalties for military moves.
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?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A lender offers a borrower a choice between paying discount points upfront or accepting a higher interest rate with a lender credit. The borrower chooses the lender credit option. For APR calculation purposes, how should the lender credit be treated?
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A borrower exercises their right of rescission on a refinance loan by calling the lender on the last day of the rescission period at 8 PM. The lender claims the rescission is invalid because it wasn't in writing. Is the lender correct?