MLA - Military Lending Act

Question 1

What does MLA cover?

Answer 1

Consumer credit made to active duty military personnel and their dependents.

Question 2

Does MLA cover non-Reg Z loans?

Answer 2

No, it only covers loans subject to Reg Z.

Question 3

What types of loans does MLA exclude?

Answer 3

Loans for residential mortgages and purchase money credit for (and secured by) personal property such as vehicle purchase loans.

Question 4

What does MAPR include?

Answer 4

It’s all inclusive, and includes all fees and charges.

Question 5

What is the MAPR limit for MLA?

Answer 5

36% cap

Question 6

What 2 disclosures are required under MLA?

Answer 6

“clear description of the payment obligation” - payment schedule and the required statement.

Question 7

Can you renew, refi or consolidate a loan subject to MLA?

Answer 7

Not unless it has more favorable terms to the borrower,r like a lower MAPR.

Question 8

Under MLA, what provisions and penalties are prohibited?

Answer 8

Prepayment provisions or penalties