CUNA continues its push on the U.S. Department of Defense (DOD) for guidance and possible revisions to the Military Lending Act (MLA). CUNA sent several potential revisions to the MLA to the DOD, which asked CUNA to submit guidance suggestions last month.
The DOD finalized changes to the MLA last year, adding a number of protections on loans extended to covered military servicemembers. Covered loans to borrowers cannot exceed a 36% military annual percentage rate (MAPR).
In the letter, CUNA Deputy Chief Advocacy Officer Elizabeth Eurgubian asked for an update on the status of additional changes to the MLA, as well as the status of the development of compliance guidance. CUNA urged the DOD to develop the guidance in coordination with the NCUA, Consumer Financial Protection Bureau (CFPB) and other federal financial regulators.
CUNA also asked the DOD to consider the following substantive changes to the MLA rule, in order to lessen the likelihood of harm to servicemembers resulting from the rule’s unintended consequences:continue reading »