MLA Status for prior date

Posted By: Josh-CarMax

MLA Status for prior date - 06/13/19 05:46 PM

We recently noticed an error on an MLA Status Certificate that was pulled on date of application. Is there any way to obtain the status date for an individual for a date in the past? Or is that even required? Can we feel good if we re-run the MLA check on the DOD site today?
Posted By: chenin

Re: MLA Status for prior date - 06/13/19 07:06 PM

You can't do a look back to determine if they are covered. This is from the Act.

Note: Historic lookbacks are prohibited under the rule. After a consumer has entered into a transaction or established an account, a creditor (including an assignee) may not, directly or indirectly, obtain any information from the DoD database to determine whether a consumer had been a covered borrower as of the date of a transaction or the date an account was established.
Posted By: Andy_Z

Re: MLA Status for prior date - 06/14/19 10:16 PM

If the error was on the part of the DMDC and its data you made a good faith effort to complete the verification and have a safe harbor. If the error was on the part of the bank, wrong name, spelling or SSAN error, you can't un-ring that bell. It is a date sensitive issue and you cannot go back and make necessary disclosures now which were not made but should have been. If you treated a borrower as not covered when they are, the loan has risks for noncompliance and you could face issues if challenged.

If that is the case I would tag that file as such and to a large degree help the borrower whenever possible on this credit.

You can't really pull a new credit report if you have no reason. Technically you could say you have an existing relationship and use that as a reason but when asked "why" and the answer is "to see if we screwed up" is not a good reason. You could check the DMDC database directly. I've not used it before as I'm not a lender so ensure there is no agreement as to allowed reasons for access. You don't want to make a situation worse.