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#2265974 - 02/08/22 04:52 PM MLA site down
banker-12 Offline
Diamond Poster
Joined: May 2007
Posts: 1,202
The MLA site has been down for the past 2 days. What do we do in this situation. We have applications pending waiting on the site to come back up. Do we document the file that the site was down? Do a screen shot?

Thanks,

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Lending to Servicemembers (SCRA, JWNDAA), War, Terrorism
#2266037 - 02/08/22 10:38 PM Re: MLA site down banker-12
TeamComply Offline
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Joined: Aug 2016
Posts: 462
For MLA searches, you can also rely upon the MLA search that is built into credit reports from the nationwide credit reporting agencies, if you have this set-up on your credit reports. We rely on MLA searches that are built into our credit reports, which is a safe harbor method stated within the Act (MLA) itself. We have also recently encountered the SCRA DOD search database being down the past couple of days, but unfortunately there is NO credit report/built in search option for the SCRA database.

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#2266041 - 02/09/22 01:50 AM Re: MLA site down TeamComply
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Will screenshot work and documentation?

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#2266046 - 02/09/22 12:19 PM Re: MLA site down banker-12
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,625
Galveston, TX
I am not sure that a screenshot would be much of a defense if you end up violating the law.
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#2266057 - 02/09/22 02:27 PM Re: MLA site down banker-12
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
As Randy stated a screenshot the system was down will not give you protection for violating the law.

As TeamComply stated there is no credit bureau option for the SCRA and to the best of my knowledge neither the MLA or the SCRA provides an exemption for a FI not complying if the DoD systems are down.

If push comes to shove then the FI will have to make a risk decision and proceed from there with the knowledge they have no safe harbor, or other protection, if the law ends up being violated.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2267272 - 03/07/22 10:58 PM Re: MLA site down banker-12
dkm1982 Offline
Junior Member
Joined: Aug 2008
Posts: 32
Our bank policy/procedures are to pull a MLA search on ALL borrowers. If they have a military status, we write the loan at 6% or less regardless if the borrower has an "Active" status. With that being said, would we need to pull a SCRA search? Is that an requirement that we obtain a SCRA search?

Thanks!

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#2267280 - 03/08/22 02:55 PM Re: MLA site down dkm1982
RVFlyboy Offline
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RVFlyboy
Joined: Oct 2000
Posts: 5,980
Soaring over Georgia
Originally Posted by dkm1982
Our bank policy/procedures are to pull a MLA search on ALL borrowers. If they have a military status, we write the loan at 6% or less regardless if the borrower has an "Active" status. With that being said, would we need to pull a SCRA search? Is that an requirement that we obtain a SCRA search?

Thanks!
MLA requires more than just a specific interest rate. In fact, the 6% rate you mention is an SCRA requirement that only applies to pre-service debt. MLA requires calculation and disclosure of a MAPR, which includes things that are not included in the APR. It also caps MAPR at a maximum of 36%. It also requires specific oral and written disclosures be provided. You should pull a MLA determination before making any consumer purpose loan covered under MLA.

SCRA, on the other hand, provides for interest rate relief to a rate no higher than 6%, but that is only for pre-service debt. SCRA does have protections in the event of default and collections, foreclosure, or repossession activities. These protections apply to all debt as long as the borrower is on active duty (or for a specified time after active duty for certain types of debt). You should pull a determination of SCRA status before undertaking any collection, foreclosure, or repossession activities.
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#2267370 - 03/09/22 05:34 PM Re: MLA site down RVFlyboy
dkm1982 Offline
Junior Member
Joined: Aug 2008
Posts: 32
Thank you!

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#2267679 - 03/15/22 06:39 PM Re: MLA site down dkm1982
Anonymous Offline
100 Club
Joined: Jun 2021
Posts: 181
Is it okay to pull the DOD for "ALL" loans? I thought we had to have reason to pull DOD, such as a covered loan.

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#2267682 - 03/15/22 07:02 PM Re: MLA site down banker-12
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
If you don't pull DOD for all loan applicants then how do you know you have a covered loan?

We have the check set-up to be performed with our credit reports.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2267688 - 03/15/22 07:23 PM Re: MLA site down Dan Persfull
Anonymous Offline
100 Club
Joined: Jun 2021
Posts: 181
We determine if the loan type is covered under MLA then if applicable pull the DOD. This would be so much easier if we could just pull it for every loan.

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