V. Lending — SCRA
Insurance Assigned as Security for a Loan
Determine, in the case of an insurance policy on the life of a servicemember that is assigned before the servicemember’s military service as security for an obligation, that the institution does not exercise, during a period of military service or within one year thereafter, any right or option obtained under the assignment, absent a court order. This prohibition does not apply—
if the assignee has written consent of the insured servicemember, obtained during his/her military service;
when the premiums on the policy are due and unpaid; or
upon the death of the insured.
Determine, in the case of an application from or receipt by a servicemember of a stay, postponement, or suspension of an obligation, that the institution does not use such action as a basis of:
a determination that the lender is unable to pay the obligation or liability in accordance with its terms;
denial or revocation of credit; change in terms of an existing credit; or refusal by the creditor to grant credit to the servicemember in substantially the same amount or terms; or
an adverse credit report or reference.
Conclude the examination after taking the following actions:
Fully address identified deficiencies and violations, if any
Attach appropriate supporting workpaper documentation
Discuss findings with management and board of directors
Write comments, as applicable, in the Report of Examination
Include appropriate violation write-ups
Discuss proposed enforcement action, if needed
Servicemembers Civil Relief Act, Pub. L. 108-189 (codified at 50 U.S.C. App. 501 et seq.
eterans Benefits Improvement Act of 2004, Pub. L. 108-454
Housing and Economic Recovery Act of 2008, Pub. L. 110-289 20 U.S.C. § 1078(d), Federal payments to reduce student interest costs
FDIC Compliance Manual — June 2009