Department of Defense | Auto Finance News | Auto Finance News

CFPB Asks Congress for Authority on Military Lending Act Compliance

Consumer Financial Protection Bureau Director Kathy Kraninger issued a legislative proposal to Congress on Thursday asking for authority to supervise compliance with the Military Lending Act.  The move by Kraninger is another step to reverse policies implemented by predecessor Mick Mulvaney, who had announced in August 2018 that the bureau would scrap supervisory examinations of […]

CFPB to Eliminate Military Lending Supervisory Exams Amid DoD Regulatory Changes

The White House is planning on revising Department of Defense (DoD) rules to more freely allow the sale of add-on products to military servicemembers at the same time that the Consumer Financial Protection Bureau prepares to scrap supervisory examinations of lenders in regards to violations of the Military Lending Act. The proposed changes were revealed […]

SNAAC Adapts to Revised Military Lending Reg to Sell GAP

Security National Automotive Acceptance Co. is one of the first lenders to adhere to revised regulations from the Department of Defense through a new compliance program, Auto Finance News has learned. In December, the DoD clarified that servicemembers seeking GAP policies are subject to the Military Lending Act (MLA). As a result, many dealers stopped […]

Examining the Defense Department’s Revised Military Lending Act

If you are in the auto finance business, you cannot possibly have missed the drama percolating around the Department of Defense’s (DoD’s) new interpretation of its own regulation’s purchase-money vehicle finance exclusion, which says transactions with GAP, credit insurance, or other credit-related ancillary products are not within said exclusion. Rather, those products are “consumer credit” […]

Regulatory Change Prompts Lenders to Halt Funding to Servicemembers Seeking GAP

The Department of Defense (DoD) threw a wrench into servicemember compliance that’s causing lenders to stop funding contracts with GAP insurance to military members, lawyers told Auto Finance News. The change stems from a December clarification to a Military Lending Act bulletin. Historically, auto loans have been exempt from the MLA, which places restrictions, such […]

Compliance: Not Dead Yet

Sighs of relief turned into sighs of frustration this past December when the Department of Defense (DOD) issued a new interpretation of the Military Lending Act (MLA), potentially resulting in severe implications for all dealers who sell or have sold vehicles to active-duty members of the U.S. armed forces and/or their dependents. It seems that […]
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