Some military personnel already have been granted the 6 percent interest rate under the 1940 Soldiers and Sailors Civil Relief Act, lenders report. The law sets a ceiling interest rate of 6 percent during the term of military service, but lenders have the discretion to be more generous.
Early indications are that some are going beyond their legal obligation.
Fannie Mae, the nation's largest mortgage buyer, has several repayment and loan options in place for reservists and others in active military duty, said Joe Sakole, vice president of loss mitigation. Borrowers receive such assistance through their lenders, which have have all the necessary loan history and documents, he said. We have many ways to assist homeowners. This is a situation where we'll do what's right. We're prepared to take those losses.