Category Archives: SCRA

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Defense Database for Military Status of Borrower Still a Work in Progress

Lenders and servicers seeking to comply with the Servicemembers’ Civil Relief Act (SCRA) who depend on the commonly used Defense Manpower Data Center (DMDC) database have a little more comfort now on the accuracy of their searches than they may have had years ago, but there are still “known issues and gaps” with the data according to … Continue Reading

SCRA Will Continue to Receive Regulatory Scrutiny

On March 22, 2016, the U.S. House of Representatives passed the Foreclosure Relief and Extension for Servicemembers Act of 2015. This bill was signed into law by President Obama on March 31, 2016. This follows the recodification of the Servicemembers Civil Relief Act (SCRA). This past December, the Appendix to Title 50 of the U.S. … Continue Reading

Changes to Military Lending Act on the Horizon

The Department of Defense (DoD) recently published its Final Rule amending the Military Lending Act’s (MLA) implementing regulation. The MLA, passed by Congress in 2006, provides active duty service members and their dependents with certain protections in a limited number of consumer credit transactions. It originally applied to (1) closed-end payday loans of less than … Continue Reading

CFPB Turns Focus to Student Loans to Servicemembers

The Consumer Financial Protection Bureau (CFPB) recently published a report highlighting the difficulties military personnel encounter when dealing with servicers of student loans. Driven by the receipt of over 1,300 complaints from servicemembers regarding the collection and servicing of their student loans, the CFPB’s report (Overseas & Underserved: Student Loan Servicing and the Cost to … Continue Reading

SCRA Post-Service Protections Extended

The Servicemembers’ Civil Relief Act (SCRA) was created to help relieve or suspend the financial burdens placed upon those serving in the U.S. military. One of the key protections afforded by the SCRA is a temporary stay of proceedings to enforce certain mortgage debts or other secured debts. In order to qualify for this protection, … Continue Reading

SCRA “Early Alert” Notification – What Is It and Why Does It Matter?

The Servicemembers’ Civil Relief Act (SCRA) gives certain protections to military borrowers. The most well-known amongst the lending industry are, in very simple terms, the requirement for a military affidavit when seeking a default judgment, reducing the interest rate to 6 percent for pre-services loans, and the protection from foreclosure for a pre-service loan without … Continue Reading
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