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
C) 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.
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Previous Question
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?
Next Question
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?