Compliance Q&A: Delinquent SCRA Loan Considerations

Q: If our bank has a SCRA applicable loan, and the loan is delinquent, but the delinquency is satisfied after the first notice was sent, is there a time period whereby a new notice does not need to be sent if the loan becomes delinquent again (similar to the 180 days’ timeframe allowed by RESPA)?

A: There is not a similar 180-day provision in the Servicemembers Civil Relief Act (SCRA) rule, so it would need to be sent each time.

Military Lending Scenario—Bank ABC has a customer who informed it that he has re-enlisted in the military but is home for a few months before being shipped overseas. The DoD database and his credit report do not show him is active duty. Should ABC Bank follow the guidelines for MLA just on the customer’s word or does it rely on and use the DOD search?

The notification required in subparagraph (A) shall be made-

(i) in a manner approved by the Secretary; and

(ii) before the expiration of the 45-day period beginning on the date on which the failure referred to in such subparagraph occurs.

12 USC §1701x(5)(B):


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