The types of consumer loans exempt from the Military Lending Act (MLA) include:
- Residential mortgages (loans to buy or build a home secured by the home), mortgage refinances, home equity loans or lines of credit, and reverse mortgages.
- Auto loans specifically used to purchase a vehicle when the loan is secured by that vehicle.
- Loans to buy personal property when the credit is secured by that property, such as home appliances.
These loans are exempt because they are secured by the property being purchased, which removes them from MLA coverage.
In contrast, the MLA covers payday loans, vehicle title loans, deposit advance loans, unsecured credit cards, installment loans (except those secured by purchased property), and overdraft lines of credit. Thus, consumer credit secured by the purchased property (such as home-secured mortgages and vehicle- secured auto loans) is exempt from the MLA protections.