Consumer complaint received 2024-08-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Interest rate
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
I have an adjustable rate mortgage. I am also a XXXX XXXX XXXX that goes onto XXXX XXXX regularly. Recently, the rate for this mortgage was set to adjust to a new high of 7.5 %. I therefore applied for a rate cap of 6 % under the terms of the Servicemembers Civil Relief Act ( SCRA ). I meet the qualifications under the law. However, Bank of America adds stipulations that are not in the law. Specifically, BOA claims I can not apply for SCRA benefits because I was XXXX XXXX in XXXX when I first obtained the mortgage with Countrywide ( BOA bought Countrywide in XXXX ). However, I soon after was XXXX XXXX from XXXX XXXX. I have mostly been a XXXX ever since, but I've joined the XXXX XXXX XXXX and have recently served again on XXXX XXXX, which is when I applied. 

The 50 U.S. Code 3937 states " An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember ... before the servicemember enters military service shall not bear interest at a rate in excess of 6 percent ... '' and 50 U.S. Code 3911 defines military service means... XXXX XXXX, as defined in section 101 ( d ) ( 1 ) of title 10 '' and " The term period of military service means the period beginning on the date on which a servicemember enters military service and ending on the date on which the servicemember is released from military service or dies while in military service. '' That is, the period of military service ends when one is released from service. I left the service from that previous period when I first obtained the loan with Countrywide. I have since joined the XXXX XXXX XXXX, recently again served on XXXX XXXX ( as defined in USC Title 10 ), and therefore this is an entirely new XXXX XXXX XXXX XXXX XXXX XXXX' as defined by the law. This recent period of service means a loan previously obtained before this service is therefore eligible for the 6 % rate cap. BOA refuses. They told me by phone, they do not consider me to have ever left the service. This is factually false, as I have a XXXX to demonstrate I was XXXX XXXX from the service back in XXXX, thus making my recent service in the XXXX XXXX XXXX a separate and new period of military service. 

BOA is violating the law. They owe me 1.5 % compounded interest excess refunded on my mortgage since my initial application, and a rate cap of 6 % for 1 year following my most recent application, and must honor future claims when I serve again on XXXX XXXX. 

Moreover, if I am a victim of BOA 's failure to follow the law, undoubtedly many other military members are as well. CFPB should consider a thorough investigation into BOA 's SCRA practices. It should be noted, BOA has a history of SCRA violations, and in XX/XX/XXXX, the Office of the Comptroller of the Currency ( OCC ) assessed a {$30.00} XXXX civil money penalty against Bank of America due to SCRA violations. https : //www.occ.gov/newsXXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation