It sets forth financial and legal protections unique to U.S. active-duty military personnel, including capping the interest rate that institutions can charge at 6 percent. However, high inflation, rising interest rates and economic uncertainty seem to be increasing the risk. Potential SCRA Regulatory ScrutinyOn September 15, 2022, the average interest rate in the United States for a 30-year mortgage reached 6.02 percent. Institutions should review CFPB recommendations to increase the use of SCRA benefits and determine if these additional actions are appropriate. MonitoringSCRA-related monitoring efforts should be evaluated against industry best practices and potentially enhanced, especially given that many financial institutions use older legacy systems with limited preventive controls.

Source: Washington Post June 06, 2023 12:21 UTC