WASHINGTON (8/9/12)--Credit unions and other mortgage lenders should note that the U.S. Department of Housing and Urban Development (HUD) has updated the expiration date on its HUD-92070, the form that spells out the legal rights and protections under the Servicemembers Civil Relief Act (SCRA).
The expiration date was pushed back by more than two years--to Nov. 30, 2014 from July 31 of this year.
HUD requires mortgage lenders to notify delinquent homeowners of the availability of homeownership counseling offered through the lender, if applicable, and through HUD-approved counseling organizations.
In addition, lenders must notify homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents under the SCRA, in case those rights apply to the borrower. This additional notice requirement became effective in late 2006.
"The only change to the HUD-92070 form appears to be the expiration date," notes Credit Union National Association Director of Compliance Information Valerie Moss. She adds a warning to compliance officers: The last form update contained some typos, so beware, since they may not have been corrected.
Use the resource link to download the SCRA notice. Also, CUNA members can visit the CUNA CompBlog for up-to-the-minute compliance tips.