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#2242830 - 09/21/20 06:48 PM MLA Search Not Conducted
Tesla Offline
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We recently determined lenders were not conducted the MLA search on covered loans (I know.).
So, I was originally going to have them do the search now, determine if we have any prohibited contract terms or exceeded the 36% MAPR, but if we do the search today, we are only going to get a message that the person was or was not a covered member in the last 30 days. These loans date back several years.

What would you recommend at this point? Just update the process, document the issue and move on?

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#2242838 - 09/21/20 07:17 PM Re: MLA Search Not Conducted Tesla
rlcarey Online
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rlcarey
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Galveston, TX
You cannot use the search site on a retroactive basis without violating the terms of use.
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#2242851 - 09/21/20 08:18 PM Re: MLA Search Not Conducted Tesla
Tesla Offline
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So just document the error and move on?
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#2242872 - 09/21/20 11:11 PM Re: MLA Search Not Conducted Tesla
Inspector Offline
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Not providing the disclosures or exceeding the MAPR voides the loan doesnt it? Wouldn't you need to check to see if you should be collecting payments?

I have never seen the voided loan bit in practice but I dont recall the rule saying anything like RoR hat the customer has to request that the loan be voided.
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#2242875 - 09/22/20 01:20 AM Re: MLA Search Not Conducted Tesla
Tesla Offline
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Joined: Nov 2003
Posts: 3,620
I'm not following you. I know the loan terms would be void if the borrower was a covered borrower and we failed to give the disclosures but there is no way to go back and find out if they were a covered borrower now, so I am not sure what to do Just chalk it up as an error, notify the Board we have potential outstanding risk I can't quantify and move on?????
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