Service member's Civil Relief Act
Who does the SCRA benefit?
Active Military Members
What is the maximum interest rate for Members protected under this act?
All loans in total cannot exceed 36%
What regulation is TILA a part of?
Regulation Z
What types of loans are covered under SCRA?
All loans, Credit Cards, and Mortgages
What is MAPR?
Military Annual Percentage Rate
How does the Truth in Lending Act protect consumers?
Requires financial institutions to provide consumers with disclosures for lending products.
What percent rate reduction does Military Members receive on pre-service debt?
6%
Who is covered by MLA?
Anyone on active duty as Military and Coast Guard (Including active guard and active reserve duty), or a dependent of a person on active duty.
Under TILA, how many days does a member have to reconsider their loan decision and back out without losing money?
3 days
If a Member reports being on active duty despite not having any loans, mortgages, or credit cards, does it still need to be reported? If so, to whom?
Yes! This still needs to be reported to loan servicing.
How do you verify a member's military status?
Can be verified by checking the Official MLA Website
What are the closing disclosures required by TILA?
Includes payment information
Shared 3 days prior to the scheduled closing
Shares info about default to ensure that members understand that they are using their home as collateral on the loan
What is the difference between SCRA and MLA?
SCRA covers pre-service loans, mortgages, and credit cards. MLA covers newly originated loans, credit cards, and mortgages.
What loans are NOT protected under MLA?
Boat Loans,
RV Loans & Power Sports Loans,
Real Estate / Property Secured Loans,
and Indirect Loans **
True or False: TILA regulates how much interest a financial institution can charge an individual.
False