Q: Will the credit reporting agencies flag an individual as a covered borrower?
A: Thanks, Gail. We don't yet know the full answer to that question, but it certainly would be helpful to a lot of lenders if the consumer reporting agencies could do that. The Defense Manpower Data Center started a pilot program that will allow the big three nationwide consumer reporting agencies, that's Equifax, Experian, and TransUnion, and a few other entities to obtain direct access to the DMDC MLA database.
There are technological issues involved, but DMDC and those parties have been working on this for some time. One purpose of the pilot program is to allow the consumer reporting agencies to devise a way to add a notation to a standard credit report indicating whether a person is a covered borrower under the MLA.