NASHVILLE–Credit unions here were offered some pointers on complying with the Department of Defense’s revised Military Lending Act (MLA).
The deadline for compliance is just four months away.
CUNA Mutual Group’s Andrea Stritzke, director of LOANLINER product management, noted during NAFCU’s annual meeting here that the new rule expands the definition of “consumer credit” covered by the regulation. As a result, credit unions will have more loans that fall within the coverage of the MLA, including but not limited to loans to refinance an auto and unsecured lines of credit, Stritzke said.
Stritzke noted credit unions will also have to develop procedures to determine whether a borrower is a “covered borrower” and receives the protections under the Act. The final rule provides a “safe harbor” from liability for lenders who verify the MLA status of a consumer using one of the two methods identified in the rule.
CUNA Mutual said it has prepared resources to help credit unions comply with the Oct. 3 deadline. Resources, including recorded webinars and frequently asked questions and answers, are located at: www.cunamutual.com/MLA.