Providing custom mortgage credit reports, related services & technology solutions for over 75 years.

800-243-0120

Site Search

Ensure Military Lending Act (MLA) Compliance with Avantus MLA Alert

September 20, 2016

On October 3, 2016 the Department of Defense will require lenders to comply with updated regulations of the Military Lending Act (MLA). This link Military Lending Act (MLA) Final Rule will help lenders understand what the MLA covers and the implications it will have on financial institutions.

The updated regulation will expand service member protections that were granted under the original legislation:

  • Coverage - MLA coverage now applies to the same products covered under TILA
  • Military APR - Maximum percentage rate of 36% now includes many add-ons
  • Eligibility - Lenders are required to verify if a consumer is covered under MLA
  • The Military Lending Act will now apply to many open- and closed-end credit products
  • The calculation of "Military APR" for disclosure now includes additional charges and payment obligations
  • The MLA defines "covered borrowers" to include service members, spouses and certain dependents

To assist lenders in determining whether an applicant is a covered borrower under the MLA, Avantus has developed the ability to check all applicants against the MLA list. Our product "Avantus MLA Alert" can be returned as part of our merged credit report. Once activated, this feature will display a "hit" or "no-hit" response as part of the credit report. This enhancement to our credit report will allow you to determine whether your applicant is covered under the MLA.

To have this feature activated or to learn more about it please contact your Marketing Representative or email us at sales@avantus.com

 

 

 

If you liked this article, consider signing up for our weekly Buzz recap email! Sent every Friday morning, it's a quick way to catch up on all the industry news and happenings at Avantus. Click here to sign up!