{ "tool_id": "art-231-compute-mla-mapr", "tool_version": "2.0.0", "display_name": "Compute MLA MAPR (closed-end)", "mcp_name": "compute_mla_mapr", "mandate_type": "compliance_mandate", "wave": 39, "gpu": false, "url": "https://ainumbers.co/chaingraph/art-231-compute-mla-mapr.html", "description": "Computes the Military Annual Percentage Rate for CLOSED-END consumer credit and tests it against the 36 percent limit that 10 USC 987(b) imposes and 32 CFR 232.4(b) sets out. 32 CFR 232.4(c)(2)(i) directs that a closed-end MAPR is calculated by Regulation Z's own rules for the annual percentage rate, based on the wider charge set in 232.4(c)(1), so this node solves the Appendix J actuarial equation from a cash-flow schedule instead of dividing charges by an original principal. A fraction of a unit-period is priced at simple interest per Appendix J (b)(6), only whole unit-periods compound, and the annual figure is the unit-period rate multiplied by the unit-periods in a year per (b)(1). A single advance repaid by a single payment takes its term as the unit-period per (b)(4)(ii), with 365 divided by the days in the term as the unit-periods per year per (b)(5)(vi) and (b)(5)(vii), so the term is day-granular and a 45-day loan is expressible rather than quantised to whole months. Every charge 232.4(c)(1) includes carries its own input: credit insurance premiums, debt cancellation contract fees and debt suspension agreement fees under (c)(1)(i), credit-related ancillary product fees under (c)(1)(ii), finance charges under (c)(1)(iii)(A), application fees under (c)(1)(iii)(B), and participation fees under (c)(1)(iii)(C). Each of them moves the reported rate. The application-fee exception in (c)(1)(iii)(B) is evaluated as the three conjunctive predicates the text states, a Federal credit union or insured depository institution creditor, a short-term small amount loan, and a fee charged not more than once in any rolling 12-month period; with anything less than all three the fee stays in. SCOPE, stated plainly: open-end credit is OUT OF SCOPE. 32 CFR 232.4(c)(2)(ii)(A) prices open-end credit on the balance for a billing cycle under 12 CFR 1026.14(c) and (d), and 232.4(c)(2)(ii)(B) governs a billing cycle with no balance. Neither is computed here, and a call declaring an open-end class or a credit card account returns no rate rather than a closed-end number. Because the bona fide fee exclusion in 232.4(d)(1) reaches only a credit card account under an open-end plan, no such exclusion is available on this path, so a caller-declared bona fide amount is recorded and included anyway. A charge is modelled as collected at consummation and deducted from the amount financed, except a finance charge, which is carried by the payment schedule and never deducted twice. A rate is reported only when a sign-change bracket was established and narrowed, so a schedule with no non-negative rate returns no figure rather than a guess. A schedule of more than 600 payments is out of scope and also returns no rate: that ceiling is a declared structural limit of this node, not a rule of law, and it keeps the work done per call bounded by a constant rather than by a caller-supplied payment count. RELATED NODE, so the two MLA MAPR nodes are told apart: this node DERIVES the payment schedule itself from described loan terms, an amount advanced repaid either by a single payment at a stated term in days or by a level installment series, so it is the one to reach for when the cash flows are not already in hand. Where a caller ALREADY HOLDS the cash flows, art-616-mla-mapr-actuarial-recompute recomputes the same closed-end MAPR by the same Appendix J actuarial method directly from those caller-supplied cash flows and charges, deriving no schedule of its own. DoD MLA rule 80 FR 43560 (22 July 2015): effective 1 October 2015, compliance required from 3 October 2016 and from 3 October 2017 for credit card accounts.", "input_schema_ref": "chaingraph/art-231-compute-mla-mapr.html#manifest", "consumes": [], "feeds": [ "art-232-compute-scra-rate-cap" ], "status": "live", "conformance_fixtures": true, "compute_capability": "server", "standards_basis": "implements_standard", "cited_clause_digest": [ { "digest": "sha256:e3890b4f3b32cdd2254b18c2313f4d9365b9b4d5b157ffe3f281280e39dd01e0", "source_url": "https://www.ecfr.gov/api/versioner/v1/full/2026-08-01/title-32.xml?part=232", "retrieved_at": "2026-08-14", "clause_path": "32 CFR 232.4(c)-(d)", "scheme": "cfr", "id": "32 CFR 232.4" }, { "digest": "sha256:a558362611d0ca8dcfc5c1526c76ddfa721e0804d9346a49116e829d7586ca9b", "source_url": "https://www.consumerfinance.gov/rules-policy/regulations/1026/j/", "retrieved_at": "2026-08-16", "clause_path": "12 CFR 1026 Appendix J (a)(2) -- actuarial-method balance recurrence, authority for rounding_steps 4 (principal_component) and 5 (closing_balance)", "scheme": "cfr", "id": "12 CFR 1026 Appendix J" }, { "digest": "sha256:b523793b29e30669d51a91b8e093010d2b9ffeb35763f10cd20ea5fc8811a960", "source_url": "https://www.consumerfinance.gov/rules-policy/regulations/1026/j/", "retrieved_at": "2026-08-15", "clause_path": "12 CFR 1026 Appendix J (b)(6) -- stub-period fraction pricing precedent for UNIT_PERIOD", "scheme": "cfr", "id": "12 CFR 1026 Appendix J" }, { "digest": "sha256:8fd3e1dae10793badbe6c871a6d2aa2d169a1a664f0e0ead79dc241e7216d7f5", "source_url": "https://www.federalregister.gov/documents/full_text/text/2015/07/22/2015-17480.txt", "retrieved_at": "2026-08-22", "clause_path": "III.D.3 Computing the MAPR (Examples 1-3)", "scheme": "fr", "id": "80 FR 43583" }, { "digest": "sha256:cb90bdbdd00a98af6066dc502b7ce73850cdb0751d4a7aab44723811ea72bd4f", "source_url": "https://www.federalregister.gov/documents/full_text/text/2015/07/22/2015-17480.txt", "retrieved_at": "2026-08-22", "clause_path": "RIA n.347 installment-loan worked example", "scheme": "fr", "id": "80 FR 43603" }, { "digest": "sha256:72911317869c2eeba2634a535283a0bccad4f58ccd5136c9170ba7c4dd01eab7", "source_url": "https://files.consumerfinance.gov/f/documents/092016_cfpb_MLAExamManualUpdate.pdf", "retrieved_at": "2026-08-22", "clause_path": "MLA 9-10, MAPR Calculation Examples #1-#3", "scheme": "cfpb", "id": "CFPB Supervision and Examination Manual, MLA (Sept 2016)" } ], "compute_images": [ { "system": "sha256-source", "image_id": "sha256:302410302655744df0ba87706c7aa12347ad96fd99d175c3ed1d497372abc0d0", "valid_from": "2026-07-10" }, { "system": "risc0", "image_id": "sha256:a1a0bc89b5b1febaeda3519f6dbade0fa5ac16beeb143c4e1b01689573567bc6", "valid_from": "2026-07-04" } ], "export_capability": [ "json" ], "compute_proof_ready": "ready", "compute_proof": { "type": "ZkVmReceipt", "system": "risc0", "receiptFormat": "groth16-bn254", "imageId": "sha256:a1a0bc89b5b1febaeda3519f6dbade0fa5ac16beeb143c4e1b01689573567bc6", "seal": "GxdnLxWwwkcDQ7cWEpdDgXTjQ8MEhAjJFgbSmk6kXDEN+CFzUldQI/4I94H0yrdHKCLEAnIp41zxd7i1sNDt+Qt8BVIQmonP73PS84tOwhKdyavxfr0hXyBK7fXbPiz7GEtoUUFLkBt/sapm8+rtRENumSHKTTDz82fUblGKftEslg/OWnJ7z7BfUz+cDkDuxbzfRDsA661uyY6yB78NhwDBUBKsB/tJF4FMb1xRGLGjwU9TbJxpwdx58ONg03nTE8HQJu2xxQUj+fCjG+CJfazzuY8/cSh5Kvrm9zLRBqMbGX9JH9HqT3N6qDd1GN0SbUBRoKZRCVjkBHgdOWTWaw==", "journal": { "chaingraph_version": "0.4.0", "kernel_digest": "sha256:302410302655744df0ba87706c7aa12347ad96fd99d175c3ed1d497372abc0d0", "output": { "amount_advanced": 500, "amount_financed_mapr": 500, "application_fee_carve_out_applied": false, "application_fee_carve_out_predicates": { "application_fee_once_in_rolling_12_months": false, "creditor_is_fcu_or_idi": false, "is_short_term_small_amount_loan": false }, "approaching_cap_threshold_basis": "House heuristic, declared. No authority states a 30 percent warning line; it is named here so a reader can see it is ours and not the regulation.", "approaching_cap_threshold_pct": 30, "bona_fide_exclusion_available": false, "bona_fide_fee_claimed_total": 0, "bracketed": true, "charge_breakdown": [ { "amount": 0, "citation": "32 CFR 232.4(c)(1)(i)", "field": "credit_insurance_premium_total", "included": true, "treatment": "collected_at_consummation" }, { "amount": 0, "citation": "32 CFR 232.4(c)(1)(i)", "field": "debt_cancellation_fee_total", "included": true, "treatment": "collected_at_consummation" }, { "amount": 0, "citation": "32 CFR 232.4(c)(1)(i)", "field": "debt_suspension_fee_total", "included": true, "treatment": "collected_at_consummation" }, { "amount": 0, "citation": "32 CFR 232.4(c)(1)(ii)", "field": "ancillary_product_fee_total", "included": true, "treatment": "collected_at_consummation" }, { "amount": 28.44, "citation": "32 CFR 232.4(c)(1)(iii)(A)", "field": "finance_charge_total", "included": true, "treatment": "carried_by_payment_schedule" }, { "amount": 0, "citation": "32 CFR 232.4(c)(1)(iii)(B)", "field": "application_fee", "included": true, "treatment": "collected_at_consummation" }, { "amount": 0, "citation": "32 CFR 232.4(c)(1)(iii)(C)", "field": "participation_fee_annual", "included": true, "treatment": "collected_at_consummation" }, { "amount": 0, "citation": "32 CFR 232.4(d)(1)", "field": "bona_fide_fee_claimed_total", "included": true, "treatment": "collected_at_consummation" } ], "converged": true, "credit_class": "closed_end", "exceeds_cap": true, "finance_charge_in_schedule": 28.44, "in_scope": true, "iterations": 25, "mapr_cap_pct": 36, "mapr_determined": true, "mapr_pct": 46.14, "max_payment_count": 600, "method_basis": "Appendix J to 12 CFR part 1026: (a)(2) actuarial recurrence on the unpaid balance; (b)(1) annualise by multiplying the unit-period rate by the unit-periods in a year; (b)(4)(ii) the unit-period of a single advance, single payment transaction is its term, capped at one year; (b)(5)(ii) a monthly unit-period has 12 unit-periods per year; (b)(5)(vi) and (b)(5)(vii) a sub-year single advance, single payment term has one unit-period and 365 divided by the days in the term unit-periods per year; (b)(5)(v)(B) a remaining interval that is not a whole number of months is the remaining days divided by 365; (b)(6) a fraction of a unit-period is priced at simple interest, so only whole unit-periods compound and no base is raised to a fractional power. Accuracy target: the one eighth of one percentage point tolerance in 12 CFR 1026.22(a)(2).", "payment_amount": 528.44, "payment_count": 1, "payment_count_exceeds_limit": false, "payment_structure": "single_payment", "payment_total": 528.44, "periodic_rate": 0.05688, "pii_note": "All inputs are processed locally in your browser. No data is transmitted.", "prepaid_includable_charges": 0, "regulatory_basis": "10 USC 987(b) and 32 CFR 232.4(b) set the 36 percent MAPR limit. 32 CFR 232.4(c)(1) sets the charge set. 32 CFR 232.4(c)(2)(i) directs that a closed-end MAPR is calculated by Regulation Z rules for the annual percentage rate over that charge set, which are 12 CFR 1026.22(a)(1) and Appendix J to 12 CFR part 1026. DoD MLA rule 80 FR 43560 (22 Jul 2015): effective 1 Oct 2015, compliance required 3 Oct 2016, and 3 Oct 2017 for credit card accounts.", "scope_note": "CLOSED-END consumer credit only. Open-end credit, including every credit card account, is OUT OF SCOPE: 32 CFR 232.4(c)(2)(ii)(A) prices it on the balance for a billing cycle under 12 CFR 1026.14(c) and (d), and 32 CFR 232.4(c)(2)(ii)(B) governs a billing cycle with no balance. Neither is computed here, and a call declaring an open-end class or a credit card account returns no rate rather than a closed-end number. The bona fide fee exclusion in 32 CFR 232.4(d)(1) reaches a credit card account under an open-end plan only, so it is unavailable on this path and a caller-declared bona fide amount is included anyway. Charges are modelled as collected at consummation and deducted from the amount financed, except a finance charge, which is carried by the payment schedule; a structure in which an includable charge is instead financed into the payments is out of scope. A schedule of more than 600 payments is also out of scope and returns no rate: that ceiling is a declared structural limit of this node, not a rule of law, and it exists so the work done inside compute() is bounded by a constant rather than by a caller-supplied payment count.", "table_source": "10 USC 987(b); 32 CFR 232.4(b) limit; 32 CFR 232.4(c)(1)(i) to (iii) charge set; 32 CFR 232.4(c)(1)(iii)(B) Federal credit union and insured depository institution application-fee carve-out; 32 CFR 232.4(c)(2)(i) closed-end computation method; 32 CFR 232.4(d)(1) and (d)(2) bona fide fee exclusion and its ineligible items; 12 CFR 1026.22(a) and Appendix J to 12 CFR part 1026 (eCFR versioner, retrieved 2026-08-14); worked examples 80 FR 43583 and 80 FR 43603 n.347 (retrieved 2026-08-22), republished at CFPB Supervision and Examination Manual, MLA (Sept 2016), pp. MLA 9 to 10.", "table_version": "MLA-DOD-32CFR232-2015-10-01", "term_days": 45, "total_excluded_charges": 0, "total_includable_charges": 28.44, "unit_periods_per_year": 8.111111 } } } }