Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
For purposes of sending SCRA notices for consumer loans, is it sufficient to send the notice to the business address for a loan secured by a primary residence, or do we have to send the notice to the individual who owns the residence as well? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

For purposes of sending SCRA notices for consumer loans, is it sufficient to send the notice to the business address for a loan secured by a primary residence, or do we have to send the notice to the individual who owns the residence as well?

—

by

Because there are no explicit requirements as to which notice to use for issuing HUD’s required SCRA notice, we do not see any problems in sending the notice to a business address when the business is making the loan. The Housing and Urban Development Act requires creditors to “provide notice” to eligible homeowners, but it does not specify where the notice should be provided. The HUD SCRA notice itself also does not specify where it should be provided.

In general, the HUD SCRA notice requirements apply to “any applicant for a mortgage” and to any “eligible homeowner,” if the eligible homeowner is in default. 12 USC 1701x(c)(5)(A)(i). In both cases, the loan must be secured by residential property in order for the notice requirement to apply. Therefore, we believe that if a loan is not secured by residential property, then the SCRA notice is not required.