Military Lending Act (MLA) NCUA Q&A – All New or Used Vehicle Loans

Compliance > Lending > Service Members > Military Lending Act
Q:  Are loans secured by all vehicles, whether new or used, considered to be covered loans?
 
A:   I'll make two points in responding to that question.  First, the rule does not apply to credit extended expressly for the purpose of purchasing a motor vehicle that is used as security for the credit.  However, it does apply to non-purchase credit that is secured by a vehicle.  Second, neither the MLA itself nor the regulation distinguishes between new and used motor vehicles.  So, they cover both types.  
 
 
 
 
 
 
ADDITIONAL INFORMATION – This Q&A was included in the NCUA’s June 2016 webinar entitled “Preparing to Comply with Regulatory Changes under the Military Lending Act.”  To listen to the audio and view the slides, interested parties may find that information here:  https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=1186523&sessionid=1&key=72023B4705907CDD0D194100B89E5D11&sourcepage=register
 

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