The Department of Defense (DoD) withdrew a problematic question from its Military Lending Act (MLA) guidance, a change called for by CUNA, Leagues and the Defense Credit Union League (DCUC). CUNA and the DCUC called on the DoD to remove the question, citing the numerous conflicts and uncertainty it creates.
“We thank the Department of Defense for responding to CUNA’s concerns and recognizing our feedback. Credit unions still face a number of compliance burdens with the MLA regulation that are of concern, but we see this as a strong step in the right direction," said CUNA President/CEO Jim Nussle. "CUNA will continue to work with the Department of Defense to evaluate where additional MLA compliance clarifications are necessary.”
Ongoing advocacy efforts from CUNA and DCUC regarding this issue has had multiple touchpoints over the past several years.
“The removal of QA2 is certainly a positive progression, however there are many more concerns with the regulatory burdens that the 2015 MLA Amendments have put on our member credit unions," said Defense Credit Union Council President/CEO Anthony Hernandez. "As more credit unions are struggling to comply, it adversely impacts not only our servicemembers and their families— but the institutions which they serve.”
The organizations have cited the numerous conflicts and uncertainty it creates for credit unions that are struggling to comply with the DoD, Office of Management and Budget (OMB), and the Senate and House Armed Services Committees.