South Carolina Soldier Sues Over Mortgage Insurance Rate

An Army sergeant based in South Carolina has filed a federal lawsuit accusing a mortgage company of not obeying a law that requires limits on interest rates for active-duty members of the military.

Raymond Wray is based at Fort Jackson. He said CitiMortgage violated the Servicemembers Civil Relief Act, which requires that mortgages for military members be capped at 6 percent while they’re on active duty and then for one additional year thereafter.

Wray said he bought a house in North Carolina in 1997 at 12.99 percent interest and enlisted in the U.S. Army two years later. CitiMortgage bought his loan, and Wray said the company never honored his request to lower his rate.

CitiMortgage wants a judge to dismiss the lawsuit. Jury selection is set for next year.