My understanding is that a loan to purchase an automobile secured by the automobile would not be a covered loan under JWNDAA. A question has come up about when this loan is renewed or refinanced would it still be exempt under the Act? I've been told a renewal is but a refinance is not. I thought I had read something (not finding it) that renewals or refinances would not be covered but I may be misunderstanding. Thank you for your help in clarifying.

P.S. I found where I had read a refinance would not be covered. This was from a previous BOL seminar Q&A. Would anyone disagree with this response? I'm being told that a refinance is no longer a "purchase" so it would be covered if secured by the vehicle.

Question 19. So, the refinance of a purchase-money vehicle loan would be
covered, correct?

Answer: No. See the exclusions on page 38 of the program materials. Loans to
purchase a motor vehicle or personal property, if secured by the motor vehicle or
personal property, are excluded from coverage.

Just checking back - anyone? I checked with another compliance resource and they are telling me a refinance would be covered so there seems to be a conflict. I told the bank it was not so I just need to be sure I've got the right information. Thank you!

I haven't looked this up, but I was thinking that it had to be a covered loan that is renewed, to be a covered loan.

I thought this is what I understood but was told that when the loan is refinanced, it is no longer a "purchase" so it would be considered covered.

Have you looked it up in the law?