Safe harbor, as referenced in the MLA, identifies the sources of data which constitute a legally valid check of covered borrower status. Creditors will have a "safe harbor" if they use one of two methods:

• Using DoD's (DMDC) Database
• Using a credit report provided by a national consumer reporting agency

Quandis' MLA Search results come directly from the DMDC database, just like the credit reporting agencies results do.

If you use a source of data other than the ones listed above, you will be legally liable for any discrepancies between your results and the DoD's data.

Yes. Quandis MLA Search performs a real-time search against the DMDC website, which is the "source of truth" for safe harbor results. The key difference between Quandis MLA and a manual search of the DMDC website is Quandis MLA Search results are returned in XML or JSON format, instead of PDF.  We simply parse the PDF returned by DMDC, translating the results into XML or JSON.

Yes. DMDC provides a website that provides a real-time search against their own database. Quandis MLA Search uses the DMDC website to perform real-time searches, and translates the PDF results into XML or JSON for easy consumption by underwriting systems.

DMDC provides a "certificate number" that is unique to each search, and can be used to audit the results. Quandis MLA Search extracts this certificate number from the PDF, and includes it in the XML or JSON results. This certificate number provides proof that the search was done against a "safe harbor" data source.

The DMDC database contains military service members, as well as their dependents -- in short, all covered borrowers. If your applicant is named John Doe, and is married to (or otherwise a dependent of) Jane Doe (an active duty service member), you don't need to search for Jane. If he's covered by the MLA, John Doe will be listed in the DMDC database.

With that said, make sure your names match! John Smith Doe is not the same as John Doe. Quandis' name permutation logic will automate such checks for you.

No. Social Security Number and Date of Birth are required to perform a MLA Search. Quandis does not log or store any other non-public personal information (NPI) by default. The information is encrypted end-to-end through Quandis' infrastructure, and passed to the DMDC website when performing a search. Once the search has been performed, the NPI is discarded.

No. The Quandis MLA Search is performed in real-time against the DMDC website. If the DMDC website is offline, Quandis MLA Search can be configured to either:

• Return an error stating that the DMDC website is down, and you should try again later, or
• Queue your request for processing when the DMDC website functionality is restored

Note that if you wish us to queue your request for future processing, we will need to store the SSN - encrypted, of course.

The source of data for both Quandis MLA Search and the credit bureaus is the same - the DMDC database. Note that the credit bureaus do not have a copy of the DMDC database; they use the DMDC API via the DMDC website to retrieve the information. In short, the credit bureaus get their MLA results from the same website Quandis does.

The Quandis MLA Search results are always performed in real time. When you get credit bureau results, the MLA results may be up to 30 days old.

A Dependent is defined as follows:

1. A spouse;
2. A child who:
   • Is under age 21;
   • Is under age 23 and is a full-time student and is (or was at the time of the service member’s death) dependent on the member for over one-half of the child’s support; or
   • An unmarried person who:
     • Is placed in the legal custody of the service member by court order for at least 12 consecutive months; or
     • Has either (i) not reached age 21 or (ii) has not reached age 23 and is a full-time student; or (iii) is incapable of self-support because of mental or physical incapacity that occurred while the person was considered a dependent of the service member; and
     • Is dependent on the service member for over one-half of the person’s support; and
     • Resides with the service member unless separated by the necessity of military service or to receive institutional care as a result of disability or incapacity; and
     • Is not otherwise a dependent under any of the other statutory definitions.

• Unsecured consumer lines of credit
• Credit cards
• Unsecured closed-end loans
• Non-purchase-money secured closed-end loans

• Annual Percentage Rate: 36% Limitation
• Removal of Mandatory Arbitration Clause
• Removal of Borrowers Waiver of the Right to Legal Recourse
• Creditors are Prohibited from using the Title of a Vehicle as Security for the Obligation
• Creditors must allow the borrower to prepay the loan and can't charge a penalty or fee for prepaying all or part of the loan.

When you pass Quandis your borrower name and SSN, we will perform a real time search against the DMDC website, returning XML or JSON indicating whether the borrower is a covered borrower.

Other safe harbor options include:

1. Using the DoD’s Defense Manpower Data Center (DMDC) Database.
2. Using a credit report provided by a national consumer reporting agency, or a reseller of that credit report, that complies with the Fair Credit Reporting Act (FRCA). Use of alternative or regional credit reporting agencies would not provide a safe harbor.

The creditor may rely on the information obtained from either method if the creditor obtains it within 30 days prior to the time the consumer initiates the transaction or applies for credit. Quandis' MLA Search results are performed in real time against the DMDC database, so they're always fresh - never stale. Thus, the 30 day 'clock' starts upon receipt of the results from Quandis.

Consumers may sue creditors for violations of the new rule, and regulators can also enforce certain penalties if the rules are violated. If a creditor is found to have violated the new rules, the following applies:

• The loan is void from the inception of the contract
• If an arbitration agreement was required, it is unenforceable
• Consumers may recover actual damages of at least $500 for each violation, as well as punitive damages, equitable or declaratory relief, and any other relief provided by law
• Consumers may recover the costs of the action and their reasonable attorney’s fees
• Consumers may pursue any other rights or remedies under any other applicable law may be used, including consequential or punitive damages
• If the creditor knowingly violates the rules, it is a misdemeanor.

Our turn-time ranges from 60 - 180 seconds with an average of 120 seconds. These metrics assume the DMDC website is on-line and functional.