CUNA publishes analysis of MLA final rule

CUNA advocacy staff have completed an analysis of the U.S. Department of Defense’s (DOD) final rule regarding military lending, and have published the results on CUNA’s Removing Barriers blog.

The changes to the Military Lending Act (MLA) were finalized July 22, will become effective Oct. 1 and compliance will become mandatory on Oct. 3, 2016.

“Under the final rule, DOD expands the scope of the MLA regulation by aligning its scope with that of the Truth in Lending Act and Regulation Z; as amended, ‘consumer credit’ covered under the MLA is now generally consistent with credit covered by Regulation Z,” the blog reads. “Thus, a wide range of credit transactions that are subject to Regulation Z–including open-end credit and installment loans–are now also subject to the MLA regulation for the first time. However, the final rule does not apply to residential mortgage loans, secured motor vehicle and personal property loans, and transactions not covered by Regulation Z.”

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