Thread Options
#2220674 - 08/29/19 03:23 PM MLA and SCRA
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
Looking for help on distinguishing the difference between the two:

MLA - must be determined before the loan is made and can't have an APR greater than 36%

SCRA - enacted if someone is called into duty and has existing obligations and can request that those obligations be lowered to 6% rate

Short and sweet but do I have the basic premise of the two?

Return to Top
Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2220678 - 08/29/19 03:29 PM Re: MLA and SCRA mdog76
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
MLA - the MAPR (Military Annual Percentage Rate) cannot be greater than 36%. There are a few different fees that are included in the MAPR over the APR (i.e. credit life insurance).
_________________________
My Opinions Only

Return to Top
#2220730 - 08/30/19 12:21 PM Re: MLA and SCRA mdog76
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,622
mdog76, I think you have a good basic summary of the two. MLA applies to active duty servicemembers at the time of origination while SCRA applies to credit that was obtained before active duty.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

Return to Top
#2220799 - 08/30/19 08:52 PM Re: MLA and SCRA mdog76
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,485
On the Net
For clarity, the MLA includes dependents and the SCRA has many more components than just the 6% rate cap on preservice loans, but with tweaking your general concept is correct.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top

Moderator:  Andy_Z