ABA SVP Nessa Feddis said:
With the additional time secured, ABA urges all banks to request direct access. Under the new Military Lending Act requirements, all banks are well-advised to verify the military status of all applicants for covered consumer loans.
Directly accessing the database provides lenders with the quickest way to verify military status for applicants applying for consumer credit -- other than a mortgage or purchase money loan -- as required by the MLA, which takes effect in October. The free direct connection provides immediate answers, whereas making batch queries via the DMDC website can take up to 24 hours.
The third option for complying is to request information about applicants from the three principal credit bureaus. Both the database and the website provide information about all covered borrowers, including dependents, however, the credit bureaus do not provide information about dependents under the age of 18.
In order to access the database directly, bankers must email firstname.lastname@example.org by Feb. 15. Bankers may include a subject line stating “Request of [bank name] for direct connection to the DMDC database to determine military status” and repeat the request, along with the bank’s full name, address and contact information in the body of the email.