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MLA and CD-secured loans

Question: 
Is a certificate of deposit-secured loan considered a covered transaction?
Answer: 

It could be, but taking a deposit account as security for a covered loan is prohibited under Section 232.8. It is ironic that often a CD-secured loan has the best interest rate available from a bank, but in the interest of consumer protection servicemembers are denied access to this type of credit.
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Learn more about Jack and Kelly’s webinar Military Lending - 11th Hour Checklist

First published on 08/21/2016

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