As of December 19, 2017, MyQL is now referred to as Rocket Mortgage.
If you’re a current member of the armed forces, you’re eligible for a number of benefits that are excusive to you as a service member. One of these benefits is the protection of the Servicemembers Civil Relief Act (SCRA).
The SCRA is a federal law that provides financial relief and protection for service members called to active duty, whether at home or deployed overseas. The act was designed, in part, to alleviate the stresses of financial obligations (like a mortgage) so that the service member can dedicate their full attention to duty.
All Army, Air Force, Coast Guard, Marine Corps and Navy service members on active duty, including reservists, as well as members of the National Guard and Air National Guard who have been activated for duty are protected under the benefits of the SCRA. This also includes active-service commissioned officers of the Public Health Service and National Oceanic and Atmospheric Administration. There are also SCRA provisions that extend to spouses and dependents of service members.
While SCRA offers many protections for active-duty service members, let’s take a look at how it relates to your mortgage, including your interest rates, late fees and foreclosure protections.
Know Your Rights
You are entitled to the following benefits under the SCRA:
- Foreclosure protection means your lender can’t proceed with foreclosure or other legal proceedings during your active duty status or within 12 months of the end of your active duty service
- Late fees will not be charged while you’re actively serving and up to 12 months after
- Non-sufficient funds fees will not be charged or accumulate
- Your interest rate will not exceed 6% for the duration of your active service plus 12 months after
Your coverage for SCRA benefits will begin as soon as the start date on your orders. Once your service ends, you will be covered by the SCRA for 12 months past the end date.
Although you are protected from being charged late fees, you will still be subject to delinquent payment reporting to the various credit bureaus. And keep in mind, if you’ve accumulated late charges before your active-duty start date, those late fees will not be waived. If you’re a Quicken Loans client, we make it easy for you to prevent late charges from happening at all. By signing up for free autopay through MyQL, you’ll ensure you never miss a payment – even while you’re deployed.
The most important thing to know about your rights under the SCRA is that they are often not automatic benefits that take place as soon as you’re placed on active duty. Typically, you must invoke or request relief from your mortgage lender as soon as you’re able. In many cases, you may be required to provide proof of your active duty orders so that you’ll receive protection under the SCRA.
However, one of the many benefits of having your loan through Quicken Loans is that we proactively place our active duty clients under the protection of the SCRA without requiring orders. We do this by actively searching and referencing the Defense Manpower Data Center (DMDC) website.
At Quicken Loans, we don’t just say we take care of our veterans, we back it up with action. We work hard to make your life easier by making it simple to manage your mortgage. If you have any questions about your benefits under SCRA, you can email us at SCRAServicing@QuickenLoans.com, or you can call (800) 508-0944.
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