Which of the following debts is NOT covered by SCRA's 6% interest rate cap?
Correct Answer
D) A car loan obtained during military service
SCRA's 6% interest rate cap under Section 207 only applies to obligations incurred BEFORE entering military service. Debts incurred during military service are not subject to the interest rate reduction provisions.
Why This Is the Correct Answer
SCRA's 6% interest rate cap under Section 207 only applies to obligations incurred BEFORE entering military service. Debts incurred during military service are not subject to the interest rate reduction provisions.
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A lender is calculating HOEPA triggers for a refinance transaction where the borrower is paying off a $180,000 existing mortgage and receiving $25,000 cash back. The new loan amount is $205,000 with total points and fees of $8,500. What is the correct points and fees percentage for HOEPA evaluation?
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A lender originates a mortgage with a 43% debt-to-income ratio using appendix Q standards, but the loan has a 5-year interest-only period followed by a 25-year amortization schedule. What is the status of this loan under QM rules?