For those of you that didn’t have a chance to listen to the FFIEC’s Industry Outreach webinar on the Military Lending Act (MLA), it was mostly just an overview of the Rule itself. We did; however, get some additional information on a couple issues we’ve been unsure about:
1. You can finance the purchase of a vehicle, as well as amounts for an extended warranty, without losing your purchase-money exemption; and,
2. It appears you can take a security interest in a deposit account. This has been an ongoing source of confusion that the Q&A tried to clarify, but didn’t, at least as far as we were concerned. We now think you’re able to take a security interest in a deposit account because the borrower is granting it or giving it to you.
While this guidance is good news, we still wish the regulation itself was more clear on these issues. In any case, we hope this gives you some assurance!