CUNA is continuing its efforts to achieve clarification on the Department of Defense’s (DOD) Military Lending Act (MLA) regulation with a letter sent this week urging answers for several outstanding questions. The letter raises a number of topics CUNA raised in a September letter to the NCUA, and reflects issues on which CUNA continues to receive inquiries.
The changes to the MLA establish limitations on terms of consumer credit extended to servicemembers, and they became effective in October. CUNA has had a number of meetings with both the DOD and NCUA to share questions brought by credit unions as they work to comply with the regulation.
CUNA believes the following issues need clarifications:
CUNA also urged the DOD to exempt certain credit unions that make few covered loans, and suggested that credit unions that made fewer than 50 covered loans in the previous calendar year should be exempt from MLA compliance.
For the complete list of requested clarifications, and the letter itself, see CUNA’s Removing Barriers Blog.