Removing Barriers Blog

NCUA to Host Webinar on MLA Changes
Posted June 02, 2016 by CUNA Advocacy

On June 29 from 2 p.m. to 3:30 p.m. Eastern, NCUA is hosting a webinar on the changes made by the Department of Defense (DoD) last year to its Military Lending Act regulations, which becomes effective this October. 

The webinar is intended to assist credit unions as they prepare to comply with the changes, which greatly expand the scope of open and closed-end products covered by the MLA’s protections, including the 36% Military APR cap. Click here to register for the webinar. 

We are still actively engaged with the DoD, CFPB, and NCUA on these recent regulatory changes. Last month we sent a letter to DoD seeking an update regarding possible revisions to the MLA regulations as well as compliance guidance, which we urge the DoD to develop in coordination with the CFPB and NCUA. Since the majority of the rule becomes effective this October, it is critical that such guidance be developed as soon as possible, and no later than June, our letter stated. 

While we appreciate NCUA’s effort to bring credit unions up to speed regarding the new requirements, we continue to be discouraged by a lack of responsiveness from DoD on this important issue for credit unions. We are hopeful that our latest communication to DoD will prompt it to develop—in the very near term— a comprehensive compliance guidance.