Talent Amendment

new to this..... what is the difference between the Talent Amendment and the SCRA?
and do we need policy?

One (Talent/JWNDAA) has to do with required disclosures at the time of application and loan closing for covered loans (we chose to discontinue these covered loans) and the other (SCRA) deals with relief for pre active duty debt and other protections for both pre and post active duty debt.

Neither regulation requires a policy however your regulator, FDIC in particular, may highly recommend one be in place.

Since you are new to this reading through this forum will give you some good background and research material. I know it's not very exciting reading but it's still good information.

Dan - "when you say you discontinued offering these covered loans" does you loan policy state that you don't offer and then to be in compliant those products are just not available to anyone that would apply regardless of whether military or not?

We do so few of these that we did not formally address it in the loan policy but did address it on the rate sheet. Our rate sheet states the minimum term to be 182 days for all model years and the maximum term for the particular model year vehicle.

This also eliminated some issues we had with shorter term loans causing us to have to adjust our fees to avoid Usury.

We have never made tax anticipation loans so that was not an issue for us.

To be a Tax Anticipation loan does the borrower need to "express" that by signing something or would the fact that the lender documents the repayment of the loan from tax proceeds make it tax anticipation? we do these, but don't directly take tax proceeds the customer initiates the repayment from the proceeds. just want to verify before I change/stop our practice if we need to.

You need to go the definition section for the exact exclusions. As I recall unless the borrower "expressly" agrees to repay the loan with the tax refund then it does not qualify as a Tax Anticipation Loan.

We have loans where the intended repayment source is the tax refund but we have no express agreement with the borrower that they will/must use the funds to repay the loan.