I suppose it doesn't surprise me its a first payment default if the bank was not aware of where the borrowers income was from. And I'd consider reviewing a sampling of this dealers other paper with you. Its not smelling good. Past experiences make me skeptical of a lot of dealer paper. Assuming it was a good purchase you'd be exempt from MLA requirements, but I'd look at that sales agreement.
The MLA and SCRA databases are different, but at the core and for the servicemember the results should be the same as to their status. When the CB says active duty but the app shows no employment or income, questions should be asked. Since you're asking about repo'ing I assume this is nonrecourse paper so underwriting is more important.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell