MLA and SCRA

Posted By: mdog76

MLA and SCRA - 08/29/19 03:23 PM

Looking for help on distinguishing the difference between the two:

MLA - must be determined before the loan is made and can't have an APR greater than 36%

SCRA - enacted if someone is called into duty and has existing obligations and can request that those obligations be lowered to 6% rate

Short and sweet but do I have the basic premise of the two?
Posted By: Skittles

Re: MLA and SCRA - 08/29/19 03:29 PM

MLA - the MAPR (Military Annual Percentage Rate) cannot be greater than 36%. There are a few different fees that are included in the MAPR over the APR (i.e. credit life insurance).
Posted By: Adam Witmer

Re: MLA and SCRA - 08/30/19 12:21 PM

mdog76, I think you have a good basic summary of the two. MLA applies to active duty servicemembers at the time of origination while SCRA applies to credit that was obtained before active duty.
Posted By: Andy_Z

Re: MLA and SCRA - 08/30/19 08:52 PM

For clarity, the MLA includes dependents and the SCRA has many more components than just the 6% rate cap on preservice loans, but with tweaking your general concept is correct.