Answer from Jim: Are they eligible? Yes. Are you required to give it to them? No. This will be an institution choice to be made.
Answer from Andy: I haven't seen a case on this and the SCRA doesn't directly address it, but as a conservative compliance professional I would review the scenario closely. The intent of the SCRA (and its predecessor the SSCRA) is to assume a person going from civilian employment to the military takes a pay cut. If this borrower was an E-5 when they left the service, and they reenlisted as an E-4, their income was impacted. The spirit and intent would be met in this case with a reduction. Again though, I've not seen a hard and fast rule for this.
First published on BankersOnline.com 4/15/13