Banks will have additional time to request access to a key military lending compliance resource. Banks now have until Monday, February 15, 2016, to request direct access to the Pentagon's Defense Manpower Data Center (DMDC) database.

 

The database is one way lenders can verify the military status of applicants applying for consumer credit, and can be used as a safe harbor for complying with the new Military Lending Act (MLA). The upcoming October 3, 2016, changes to the MLA will broaden the types of loans covered, by including more consumer credits under the umbrella of the MLA. All consumer credits will now be covered, except for residential mortgages, purchase money loans, and transactions exempt from Regulation Z.

 

Directly accessing the database will provide lenders with the quickest way to verify military status for applicants applying for consumer credit. The free direct connection provides immediate answers, whereas making batch queries via the DMDC website can take up to 24 hours. Banks can also comply with requirements by requesting information about applicants from the three principal credit bureaus, but they do not provide information about dependents under the age of 18 and a fee may be assessed.

 

In order to access the database directly, bankers must register by Monday, February 15, 2016, by emailing: dodhr.dodc-mb.dmdc.mbx.mla@mail.mil.

 

The subject line of the email should include "Request of [Bank Name] for direct connection to the DMDC database to determine military status." Repeat the request, along with the bank's full name, address and contact information in the body of the email.

 

If you have any questions, please contact the Eide Bailly Compliance Helpline at 855.239.8676 or compliancehelp@eidebailly.com.