Servicemembers Civil Relief Act (SCRA) entitles the servicemembers who are in military service to certain protections and benefits such as interest rate limitations, protections from default judgment and foreclosure, and eviction from premises. The table below presents a list of documents and disclosures that are used to implement and demonstrate compliance with SCRA requirements. The list may not be exhaustive since additional or alternate documentation may be applicable or used in certain circumstances.
SCRA applies to auto loans, credit card loans, mortgage loans and other forms of debt. The documentation and information provided below is in context of mortgage loans only.
|Non-Military Affidavit||Affidavit||Yes||Any mortgage loan, whether or not obtained by a servicemember, for which a default judgment is being requested.||SCRA §521||Written|
|SCRA Certificate||Statement||No||All mortgage loans obtained before entering the military service||N.A.||Written|
|SCRA Notice||Disclosure||Yes||HUD approved lenders. All mortgage loans.||12 USC 1701x (c)(5) (A)(ii)(IV)||Written|
|SCRA Letter to Request Cap on Interest Rate||Letter||No||All mortgage loans obtained before entering the military service||SCRA §527||Written|
|Waiver of SCRA Rights||Letter||No||All mortgage loans obtained before entering the military service||SCRA §517||Written|
Record retention period is not specified by SCRA. For loans in foreclosure or under default proceedings, the specific State and local laws may have separate requirements. You should seek advice from legal and compliance departments for the record retention period. For audit and compliance purposes, you should keep the documents for at least till the loan is closed or certain time period after completion of foreclosure.
Updated: Jun 15, 2014