WASHINGTON (2/2/16)--The U.S. Department of Defense has agreed to extend the deadline to request access to its Defense Manpower Data Center (DMDC) to Feb. 15. The Credit Union National Association (CUNA) and others requested an extension of the Feb. 1 deadline, in order for credit unions to use the database to identify borrowers covered under the Military Lending Act (MLA).
Starting Oct. 3, lenders will be required to determine the military status of all applicants for many forms of consumer credit. The MLA places certain protections over covered borrowers, including a cap on annual percentage rates, so credit unions and other lenders need to know which borrowers are covered.
Credit unions wishing to use the MLA database/DMDC direct connection capability being developed should email the MLA help desk at firstname.lastname@example.org by Feb. 15.
CUNA believes the DMDC is the best, most efficient way to determine military status of loan applicants, and the DMDC is one of two safe harbor methods credit unions must use after Oct. 3.
The second method allows a credit union to use a consumer report obtained from a nationwide consumer reporting agency.
Credit unions can use the existing method--using a covered borrower identification statement on the loan application--as a safe harbor for compliance until Oct. 3.