ARLINGTON, Va.—NAFCU is pushing for credit unions to get more time to analyze a Department of Defense proposed rule to widen the types of loans covered by the Military Lending Act, impacting CUs that lend to military service members and their families.
The effects of the “Limitations on Terms of Consumer Credit Extended to Service Members and Dependents” rule could have the biggest impact on CU payday lending alternatives, analysts have stated. NAFCU President Dan Berger sent a letter to the Department of Defense requesting a 45-day extension of the comment period on the proposed rule.
In the letter Berger stated that NAFCU and its member credit unions need the additional time “to better formulate our comments for this complex and wide-reaching rule.”
Berger noted that the extension would permit CUs to review the provisions in the proposal “in detail and analyze thoroughly the impact of such provisions on their current operations and plans for the future.”
The NAFCU president also reminded that credit unions currently face a great deal of regulatory burden from major new rules, such as the Consumer Financial Protection Bureau's mortgage rules and TILA/RESPA implementation, as well as NCUA’s risk-based capital proposal.
“We urge the Department of Defense to be mindful of those obligations as it considers this request,” Berger wrote.