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#2158643 - 12/28/17 02:50 PM MLA Credit Pulls for all loans
Bec Offline
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Any of you perform your MLA searches via credit reports? If so, do you pull that information for ALL loans, even ones that are not covered loans like Real Estate (except for lot loans)?
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#2158648 - 12/28/17 02:56 PM Re: MLA Credit Pulls for all loans [Re: Bec]
NSF, CRCM Offline
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Registered: 04/19/13
Posts: 407
Loc: VA
We do and it prints on every credit report that is pulled even real estate loans.
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#2158720 - 12/29/17 09:36 AM Re: MLA Credit Pulls for all loans [Re: Bec]
RR Joker Offline
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We don't rely on it since it has returned incorrect results. I believe it's on all of our reports though.
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#2158732 - 12/29/17 10:50 AM Re: MLA Credit Pulls for all loans [Re: RR Joker]
NSF, CRCM Offline
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Loc: VA
Originally Posted By RR Joker
We don't rely on it since it has returned incorrect results. I believe it's on all of our reports though.


So far we have only had one false negative from the credit report results. Still not sure how that happens if they update their records on a daily basis.
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It is better to act cautiously beforehand than to suffer afterward.

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#2159250 - 01/04/18 03:57 PM Re: MLA Credit Pulls for all loans [Re: Bec]
RR Joker Offline
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I noticed they have a disclaimer [on ours] so that takes all reliability/confidence away IMHO.
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#2159252 - 01/04/18 03:59 PM Re: MLA Credit Pulls for all loans [Re: RR Joker]
NSF, CRCM Offline
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Registered: 04/19/13
Posts: 407
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Originally Posted By RR Joker
I noticed they have a disclaimer [on ours] so that takes all reliability/confidence away IMHO.


I wonder would this disclaimer effect the safe harbor provision provided by the Act?
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It is better to act cautiously beforehand than to suffer afterward.

The answers I give are my opinions. Not legal advice.

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#2159255 - 01/04/18 04:07 PM Re: MLA Credit Pulls for all loans [Re: NSF, CRCM]
bcompliance Offline
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Registered: 09/04/14
Posts: 1016
Originally Posted By NSF, CRCM
Originally Posted By RR Joker
I noticed they have a disclaimer [on ours] so that takes all reliability/confidence away IMHO.


I wonder would this disclaimer effect the safe harbor provision provided by the Act?


It shouldn't since it's a safe harbor in the reg...
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#2159261 - 01/04/18 04:29 PM Re: MLA Credit Pulls for all loans [Re: Bec]
RR Joker Offline
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If it's deemed unreliable, I would imagine it would not meet safe harbor due diligence.
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#2159274 - 01/04/18 05:01 PM Re: MLA Credit Pulls for all loans [Re: Bec]
bcompliance Offline
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Registered: 09/04/14
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Wouldn't they need to issue guidance or remove that from the reg first? I'm not trying to be difficult, I'm just wondering...
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#2159912 - 01/10/18 08:58 AM Re: MLA Credit Pulls for all loans [Re: Bec]
RR Joker Offline
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Loc: The Swamp
What does the reg actually say? [sorry, no real time to go dig] If memory serves me, when this reg first came out the bureau's were not even able to provide this info.
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#2159914 - 01/10/18 09:10 AM Re: MLA Credit Pulls for all loans [Re: Bec]
rlcarey Online
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Registered: 07/16/01
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Reliable or not, it is codified. If it is not reliable, then it is the CRA's problem.

§ 232.5 Optional Identification of covered borrower.

(b) Safe harbor—(1) In general. A creditor may conclusively determine whether credit is offered or extended to a covered borrower, and thus may be subject to 10 U.S.C. 987 and the requirements of this part, by assessing the status of a consumer in accordance with this paragraph (b).

(2) Methods to check status of consumer—

(ii) Consumer report from a nationwide consumer reporting agency. To determine whether a consumer is a covered borrower, a creditor may verify the status of a consumer by using a statement, code, or similar indicator describing that status, if any, contained in a consumer report obtained from a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis, or a reseller of such a consumer report (as each of those terms is defined in the Fair Credit Reporting Act (15 U.S.C. 1681a) and any implementing regulation (12 CFR part 1022)).
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#2159951 - 01/10/18 12:12 PM Re: MLA Credit Pulls for all loans [Re: Bec]
bcompliance Offline
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Registered: 09/04/14
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Randy, thanks for that citation and confirmation. Joker, you're correct, the bureau's couldn't provide this when the reg changed. They had to add this feature on, which increased the price of most credit reports.
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#2160362 - 01/12/18 01:49 PM Re: MLA Credit Pulls for all loans [Re: Bec]
Andy Z Offline


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And back to the original question, I haven't heard that most reports allowed you to get the military verification on this report, but not that report. The savings to differentiate them would be minimal although the mortgage area may have it off while consumer lending has it on. If you pull a report and it shows positive, that could be an SCRA indicator you need to pay attention to, is my point.

Last year there was at least one case of auto repossessions when the the DMDC apparently had been checked and was negative when checked, but the lenders files more accurately said the borrower was protected. That information was dismissed over the DMDC check. Vehicles were repossessed sans court orders and penalties resulted. Moral of the story, in the SCRA the DMDC is not a safe harbor even though it is generally a reliable tool. There also may be differences between the MLA and SCRA searches.
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#2165088 - 02/16/18 05:53 PM Re: MLA Credit Pulls for all loans [Re: Bec]
PegH Offline
Member

Registered: 07/25/16
Posts: 57
Just a quick question on this topic.. We are thinking about switching to letting the credit reports pull the MLA Status... Do you have any other documentation in the loan besides the credit report to show that it was pulled by the Loan Officer. or is the mere fact that it pulls on all loans sufficient?

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