A servicemember's mortgage payment is due on the 1st of each month. They are deployed to a combat zone where they cannot access banking services. The payment arrives on the 8th due to mail delays. Under SCRA protections, can the lender charge late fees?
Correct Answer
B) No, if the servicemember can prove military service caused the delay
While SCRA Section 207 primarily addresses interest rate reductions, courts have interpreted SCRA protections broadly to prevent penalties when military service materially affects a servicemember's ability to meet obligations. If deployment directly caused the payment delay, late fees may be inappropriate under SCRA principles.
Why This Is the Correct Answer
While SCRA Section 207 primarily addresses interest rate reductions, courts have interpreted SCRA protections broadly to prevent penalties when military service materially affects a servicemember's ability to meet obligations. If deployment directly caused the payment delay, late fees may be inappropriate under SCRA principles.
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For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
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