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Military Lending Act (MLA) Loan Qualification

You will learn how Bravo helps determine Military Lending Act (MLA) loan eligibility, ensuring compliance by verifying customer military status before issuing loans.

The Military Lending Act of 2006 (MLA) places a maximum limit on the finance charges allowed to be collected on a loan written to active duty service members and their families. Specifically, it extends a thirty-six percent Military Annual Percentage Rate (36.00% MAPR) protection to a qualified borrower. To identify qualified borrowers, the United States Department of Defense manages a web portal where lenders can verify the Active Duty Status of individual borrowers. This web portal can be found at https://mla.dmdc.osd.mil/mla/#/single-record.

Bravo features functionality to help manage loans written to MLA-qualified borrowers. To turn this feature on, please contact Tech Support.

 

Once the feature is enabled, you will see the MLA check box on any loan transaction screen.

You can click on the "MLA Check" link at the top of the box to open a web page that display's the customer's relevant information, copied from his or her customer profile, and an embedded frame of the DoD's web portal.

NOTE: In some web browsers, the DoD's web site content may not load properly within the embedded web page frame. If nothing appears at the bottom of the page, click on the link at the top to open the DoD site in a new browser tab. If you still receive page errors when loading the DoD site, go here for further troubleshooting: https://mla.dmdc.osd.mil/mla/services/content/documents/userGuide

 

Searching for a borrower's Active Duty Status via the Single Record Request page will produce a PDF containing the borrower's status. Once you have checked the status of the borrower, you can switch back to Bravo to record the MLA Result. There are four transaction options for the MLA Check results. Selecting one option in the transaction affects all loans written or renewed within that transaction:

MLA - Not Applicable

  • Select this option if the borrower is not a U.S. citizen, or otherwise cannot be qualified for a loan with MLA interest rates.
  • This selection will not change the Finance Charge from what would have originally been applied to the loan(s) in the transaction by the selected Regulatory Set.
  • The loan(s) in the transaction will not be marked MLA-Relevant.

MLA - Unqualified

  • Select this option if you searched for the borrower on the DoD's web site and found that he or she is found NOT QUALIFIED for the MAPR on the loan(s) in the transaction. 
  • This selection will not change the Finance Charge from what would have originally been applied to the loan(s) in the transaction by the selected Regulatory Set.
  • The loan(s) in the transaction will not be marked MLA-Relevant.

MLA - Qualified

  • Select this option if you searched for the borrower on the DoD's web site and found that he or she is found QUALIFIED for the MAPR on their loan.
  • This selection will adapt the Regulatory Set rules for the specific loan(s) in the transaction by zeroing out all fees and overriding the Pawn Interest to 3.00% per Pawn Interest Period (36.00% total APR). The pawn ticket that prints at the end of the transaction will reflect the 36.00% MAPR.
  • If the regulatory set would have originally applied a lower APR than 36.00%, then no changes will be made to the loan(s). This also applies to loans with negotiated interest rates where the negotiated interest rate is less than 3.00% per Pawn Interest Period.
  • The loan(s) in the transaction will be marked MLA-Relevant.
  • If a negotiated interest rate is set for a loan and that rate exceeds 36.00%, the system will prevent you from completing the transaction. You will need to set the Negotiated Rate to the Default Value or negotiate a lower rate.

 

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MLA - Process Later

  • Select this option if the borrower's information was not entered into the DoD's web site, but may be entered at a later date, potentially qualifying the borrower later for the MAPR. 
  • This selection will not change the Finance Charge from what would have originally been applied to the loan(s) in the transaction by the selected Regulatory Set, but it will allow the Finance Charges to be reduced later if the transaction is modified to set the borrower as MLA - Qualified..
  • To change the selection later, find the transaction in Void/View Transactions. If this transaction is modified later and the loan(s) in the transaction are changed to MLA-Relevant loans, new Pawn Ticket Forms will print after saving the changes. These new forms will need to be signed by the borrower, indicating that they agree to the lower Finance Charge.
  • The loan(s) in the transaction will not be marked MLA-Relevant unless the transaction is later modified for the borrower to be MLA - Qualified.

To prevent unauthorized loan associates from writing loans with reduced Finance Charges, the transaction cannot allow the borrower to be marked MLA - Qualified unless the Negotiate Interest Rate security bit is set to "Allowed" for the employee processing the transaction. Otherwise, a manager will be required to approve the exception.

 

Ad Hoc Reporting criteria and Column Chooser columns have also been added in Loans/Buys and Void/View Transactions to help identify loans written to borrowers who are MLA - Qualified. In Loan/Buy Management, loans will be marked as MLA Relevant. In Void/View Transactions, you can search and view the MLA Result recorded in the transaction.
Here the Ad Hoc Loan Report Generator is being used in Loans/Buys

 

And here is the Ad Hoc being used in Void/View Transactions.