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Lot loans and the MLA

Question: 
Are lot loans exempt from the Military Lending Act? Such loans involve a mortgage, and mortgage loans are exempt.
Answer: 

: Actually 232.3(f)(2) excludes a residential mortgage, which is any credit transaction secured by an interest in a dwelling, including a transaction to finance the purchase or initial construction of the dwelling, any refinance transaction, home equity loan or line of credit, or reverse mortgage. A lot loan is not a residential mortgage. To be exempt the transaction must involve a dwelling.
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First published on 08/21/2016

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