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FIL-65-2016: Military Lending Act: Interagency Consumer Compliance Examination Procedures

October 17, 2016 / Source: FDIC

Printable Format: FIL-65-2016 - PDF (PDF Help)


The FDIC has released revised interagency examination procedures that reflect the Department of Defense's (DOD) 2015 amendments to the implementing regulations of the Military Lending Act of 2006 (MLA) and its August 2016 interpretive rule that provides guidance on certain questions received regarding compliance with the MLA rule. The release of these examination procedures is part of the FDIC's ongoing efforts to inform supervised institutions about important bank regulatory developments and to promote transparency in the FDIC's supervisory program. The examination procedures should be helpful to financial institutions seeking to better understand the areas on which the FDIC will focus as part of the examination process. The FDIC is also providing guidance on its initial supervisory expectations in connection with its examinations of financial institutions for compliance with the MLA rule.

Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised institutions.


  • FDIC examiners will use the updated interagency examination procedures to evaluate financial institutions' compliance with the amended MLA regulations (32 CFR Part 232), to the extent such evaluations are part of the scope of an FDIC consumer compliance examination.
  • On August 26, 2016, DOD published an interpretive rule in the Federal Register that provides guidance on certain questions received regarding compliance with the DOD's July 2015 MLA final rule.
  • The updated interagency examination procedures reflect the July 2015 final rule and the August 2016 interpretive rule.
  • During early examinations, examiners will evaluate financial institutions' compliance management systems and overall efforts to come into compliance. Specifically, examiners will consider an institution's implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and its handling of early implementation challenges. The FDIC reminds institutions that they are responsible for ensuring that servicemembers and other eligible consumers receive the consumer protections afforded by the MLA.

Continuation of FIL-65-2016


FDIC-Supervised Institutions

Suggested Routing:

Chief Executive Officer
Chief Compliance Officer
Chief Loan Officer

Related Topics:

Military Lending Act Regulation, 32 CFR Part 232



Patience Singleton, Senior Policy Analyst, at (202) 898-6859 or
Samuel Jaeger, Examination Specialist, at (202) 898-3534 or


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Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).