CFPB Alert Highlights New Protections for Servicemembers and Veterans
The CFPB recently issued an alert directed to servicemembers and veterans which highlights the additional protections provided by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The alert (which includes hyperlinks that lead to various relevant details) addresses the following new protections:
- More meaningful incentives when refinancing VA home loans: Effective May 2018, lenders must meet more severe requirements in order for refinance loans to receive VA guarantee. The more stringent requirements include fee recoupment, a net tangible benefit test with very strict features, and a minimum time between loans.
- Continued foreclosure protection: Effective May 2018, the SCRA’s servicemember foreclosure protection for up to one year after separation from active duty has been changed from a temporary protection to a permanent protection.
- Medical debt credit reporting protections: Effective May 24, 2019, veterans will have greater credit reporting protections with regard to certain medical debts owed to private medical providers when the VA has authorized payment for those services and when the VA wrongly charges a veteran for medical services. The VA is required to establish a database that assists nationwide credit reporting agencies in their determination regarding whether to exclude a veteran’s medical debt from their credit report.
- Free credit monitoring: Active duty servicemembers (including those in the National Guard) will have access to electronic credit monitoring at no cost, effective no later than May 24, 2019.
