A servicemember's spouse co-signed a mortgage before the servicemember entered active duty. The couple is now divorcing while the servicemember remains on active duty. Which party can claim SCRA protections?
Correct Answer
A) Only the servicemember can claim SCRA protections
Under SCRA Section 101, protections are available to the servicemember personally. While a spouse may benefit indirectly from certain protections, the spouse cannot independently invoke SCRA protections as a co-obligor. The servicemember retains the right to SCRA protections regardless of divorce proceedings.
Why This Is the Correct Answer
Under SCRA Section 101, protections are available to the servicemember personally. While a spouse may benefit indirectly from certain protections, the spouse cannot independently invoke SCRA protections as a co-obligor. The servicemember retains the right to SCRA protections regardless of divorce proceedings.
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During a loan interview, a borrower mentions they are recently divorced and will be receiving alimony payments. The MLO asks detailed questions about the borrower's ex-spouse's employment stability and suggests the borrower might want to consider a less expensive home 'until things settle down.' This response:
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