1. Lending to ServicemembeRs
KNOWLEDGE. CLARITY. RELIABILITY.
(888)

2. Agenda
Servicemembers Civil Relief Act
Military Lending Act
Comparison

3. SCRA Coverage
Active-Duty
Federal Military
Dependents
Obligors

4. SCRA Coverage
Obligation BEFORE
Active Duty After

5. SCRA Protections Adverse Action Interest Rate Cap
Foreclosure Protection
Installment Contracts
Leases
Enforcement of Storage Liens
Eviction
Life Insurance
Dependents

6. Interest Rate Cap 6% Servicemember + Spouse Requested in Writing
Only covered loans

7. Interest Rate Cap Interest Service Charges Renewal Charges
Fees (including late fees)
Any other charges (except insurance)

8. Foreclosure/Court Actions
Non-Judicial Foreclosures Invalid
Stay of Proceedings
Active Duty + 1 year
Representation
HUD Notice

9. SCRA Penalties
Fines
Prison up to 1 year

10. 2018 Amendments
2003
S.2155
McCain Amendment

11. Scenarios 1-3
PGS. 6-7

12. Arbitration Prohibition
Military Lending Act
MAPR limit
Disclosure
Arbitration Prohibition

13. Covered Borrower
Active Duty
Dependent

14. Dependent Parent or Parent-in-law Child or Ward: Spouse Ward
depends on support
resides in household
Child or Ward:
Under the age or 21;
Under the age of 23 and a full-time college student; OR
incapable of supporting themselves
mental or physical incapacity
Ward
The Ward must also be unmarried

15. Identification Optional Safe Harbor 60 days Prior to Loan close
Credit Report
DoD Database
Prior to Loan close
60 days

16. Covered Transactions Consumer Credit Regulation Z Open-End Loans
Payday Loans
Credit Cards
Vehicle-Secured Loans
Land-Only Loans

17. Residential Mortgages
Exceptions
Purchase Money
Vehicle Purchase
Residential Mortgages
HELOCs/HE
Reverse Mortgages
Initial Construction
Refis
Business Loans

18. MAPR
36%
Interest
Fees
Charges

19. Disclosures
Written
Oral
Prior to Origination
Regulation Z

20. Credit Insurance Premiums
Credit Cards
Bona-Fide Fees
Periodic Interest
Credit Insurance Premiums
Debt Cancel/ Suspend
Ancillary fees
Like-Kind Fees

21. Prohibited Activities
Rights Waiver
Arbitration
Unreasonable Notice
Checks
Allotment
Prepayment

22. Regulatory Enforcement
Liability
Civil Penalties
Fines
Criminal Penalties
Regulatory Enforcement

23. Scenarios 4-5
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