source:
  type: regulation
  id: scra-50usc-3937
  authority: 50 U.S.C. §3937 — Maximum rate of interest on debts incurred before military service
  description: 'SCRA §3937 is the most operative SCRA section for residential mortgage

    [LENDER]s. It imposes a 6%-per-year hard cap on interest on any pre-

    service obligation (including a mortgage, trust deed, or other

    security in the nature of a mortgage) during the servicemember''s

    period of military service AND for one year after for mortgages

    (subsection (a)(1)(A)). Interest above 6% during the protected period

    is FORGIVEN — not deferred — and the periodic payment must be

    REDUCED by the forgiven amount, not re-amortized to maintain the

    pre-service payment (subsection (a)(3)). The cap is triggered by

    written notice + military orders within 180 days post-release

    (subsection (b)(1)(A)), or earlier by independent DMDC verification

    by [LENDER] (subsection (b)(1)(B), safe-harbor). On receipt of

    proper notice the cap is retroactive to the date the servicemember

    was called to military service (subsection (b)(2)). "Interest" is

    defined to include service charges, renewal charges, fees, and any

    other charges except bona fide insurance (subsection (d)(1)).

    Knowing violation is a federal criminal offense (subsection (e)).

    '
obligations:
- id: scra-50usc-3937-a
  canonical_id: scra-50usc-3937-a
  section: 50 U.S.C. §3937(a)
  description: '(a): (a) Interest rate limitation (1) Limitation to 6 percent An obligation or liability
    bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or
    the servicemember and the servicemember’ s spouse jointly, before the servicemember enters military
    service shall not…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: (a) Interest rate limitation (1) Limitation to 6 percent An obligation or liability
      bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember,
      or the servicemember and the servicemember’ s spouse jointly, before the servicemember enters military
      service shall not bear interest at a rate in excess of 6 percent— (A) during the period of military
      service and one year thereafter, in the case of an obligation or liability consisting of a mortgage,
      trust deed, or other security in the nature of a mortgage; or (B) during the period of military
      service , in the case of any other obligation or liability . (2) Forgiveness of interest in excess
      of 6 percent Interest at a rate in excess of 6 percent per year that would otherwise be incurred
      but for the prohibition in paragraph (1) is forgiven. (3) Prevention of acceleration of principal
      The amount of any periodic payment due from a servicemember under the terms of the instrument that
      created an obligation or liability covered by this section shall be reduced by the amount of the
      interest forgiven under paragraph (2) that is allocable to the period for which such payment is
      made.
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: scra-50usc-3937-b
  canonical_id: scra-50usc-3937-b
  section: 50 U.S.C. §3937(b)
  description: '(b): (b) Implementation of limitation (1) Proof of military service (A) In general Not
    later than 180 days after the date of a servicemember ’s termination or release from military service
    , in order for an obligation or liability of the servicemember to be subject to the interest rate
    limitation in subs…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: (b) Implementation of limitation (1) Proof of military service (A) In general Not
      later than 180 days after the date of a servicemember ’s termination or release from military service
      , in order for an obligation or liability of the servicemember to be subject to the interest rate
      limitation in subsection (a), the servicemember shall provide to the creditor written notice and
      a copy of—
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: scra-50usc-3937-i
  canonical_id: scra-50usc-3937-i
  section: 50 U.S.C. §3937(i)
  description: '(i): (i) the military orders calling the servicemember to military service and any orders
    further extending military service ; or (ii) any other appropriate indicator of military service ,
    including a certified letter from a commanding officer. (B) Independent verification by creditor'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: (i) the military orders calling the servicemember to military service and any orders
      further extending military service ; or (ii) any other appropriate indicator of military service
      , including a certified letter from a commanding officer. (B) Independent verification by creditor
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: scra-50usc-3937-i
  canonical_id: scra-50usc-3937-i
  section: 50 U.S.C. §3937(i)
  description: '(i): (i) In general A creditor may use, in lieu of notice and documentation under subparagraph
    (A), information retrieved from the Defense Manpower Data Center through the creditor’s normal business
    reviews of such Center for purposes of obtaining information indicating that the servicemember is
    on activ…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: (i) In general A creditor may use, in lieu of notice and documentation under subparagraph
      (A), information retrieved from the Defense Manpower Data Center through the creditor’s normal business
      reviews of such Center for purposes of obtaining information indicating that the servicemember is
      on active duty. (ii) Safe harbor A creditor that uses the information retrieved from the Defense
      Manpower Data Center under clause (i) with respect to a servicemember has not failed to treat the
      debt of the servicemember in accordance with subsection (a) if— (I) such information indicates that,
      on the date the creditor retrieves such information, the servicemember is not on active duty; and
      (II) the creditor has not, by the end of the 180-day period under subparagraph (A), received the
      written notice and documentation required under that subparagraph with respect to the servicemember
      . (2) Limitation effective as of date of order to active duty Upon receipt of written notice and
      a copy of orders calling a servicemember to military service , the creditor shall treat the debt
      in accordance with subsection (a), effective as of the date on which the servicemember is called
      to military service .
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: scra-50usc-3937-c
  canonical_id: scra-50usc-3937-c
  section: 50 U.S.C. §3937(c)
  description: '(c): (c) Creditor protection A court may grant a creditor relief from the limitations
    of this section if, in the opinion of the court , the ability of the servicemember to pay interest
    upon the obligation or liability at a rate in excess of 6 percent per year is not materially affected
    by reason of the s…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: (c) Creditor protection A court may grant a creditor relief from the limitations
      of this section if, in the opinion of the court , the ability of the servicemember to pay interest
      upon the obligation or liability at a rate in excess of 6 percent per year is not materially affected
      by reason of the servicemember’ s military service.
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: scra-50usc-3937-d
  canonical_id: scra-50usc-3937-d
  section: 50 U.S.C. §3937(d)
  description: '(d): (d) Definitions In this section: (1) Interest The term “ interest ” includes service
    charges, renewal charges, fees, or any other charges (except bona fide insurance) with respect to
    an obligation or liability . (2) Obligation or liability The term “ obligation or liability ” includes
    an obligation …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: '(d) Definitions In this section: (1) Interest The term “ interest ” includes service
      charges, renewal charges, fees, or any other charges (except bona fide insurance) with respect to
      an obligation or liability . (2) Obligation or liability The term “ obligation or liability ” includes
      an obligation or liability consisting of a mortgage, trust deed, or other security in the nature
      of a mortgage.'
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: scra-50usc-3937-e
  canonical_id: scra-50usc-3937-e
  section: 50 U.S.C. §3937(e)
  description: '(e): (e) Penalty Whoever knowingly violates subsection (a) shall be fined as provided
    in title 18, imprisoned for not more than one year, or both. (Oct. 17, 1940, ch. 888, title II, §
    207, as added Pub. L. 108–189, § 1 , Dec. 19, 2003 , 117 Stat. 2844 ; amended Pub. L. 110–289, div.
    B, title II, § 2203(b…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 50 U.S.C. §3937(a)(1)
    source_class: scra-statute
    source_url: https://www.law.cornell.edu/uscode/text/50/3937
    snapshot_id: b4334d90b164a3b4
    fetched_at: '2026-05-24T19:33:23Z'
    content_hash: sha256:5913785d9bb209e1ca0f03c2c0426890f2fcfa2f7a188d602b6b48d690f5b95b
    paragraph_quote: (e) Penalty Whoever knowingly violates subsection (a) shall be fined as provided
      in title 18, imprisoned for not more than one year, or both. (Oct. 17, 1940, ch. 888, title II,
      § 207, as added Pub. L. 108–189, § 1 , Dec. 19, 2003 , 117 Stat. 2844 ; amended Pub. L. 110–289,
      div. B, title II, § 2203(b) , July 30, 2008 , 122 Stat. 2849 ; Pub. L. 110–389, title VIII, § 807
      , Oct. 10, 2008 , 122 Stat. 4189 ; Pub. L. 111–275, title III, § 303(b)(1) , Oct. 13, 2010 , 124
      Stat. 2877 ; Pub. L. 115–232, div. A, title V, § 600 , Aug. 13, 2018 , 132 Stat. 1793 .)
    drafter_attestation: Verbatim subsection of 50 U.S.C. §3937 from Cornell LII snapshot b4334d90b164a3b4;
      body isolated between nav and notes; substring-verified.
  judgment: false
