What Is Covered by the Mla

Answer: The MLA applies to active duty servicemembers (including those on active Guard or active Reserve duty), spouses, and certain dependents. It limits the interest rates that may be charged on many types of consumer loans to no more than 36% and provides other important protections.

Does MLA cover real estate loans?

If yes, is the credit a residential mortgage for purchase, construction, or refinance; a reverse mortgage; or a home equity loan or line of credit? If yes, the MLA does not apply to residential mortgage transactions regardless of whether the covered borrower lives in the home.

Does MLA cover annual fees?

While the SCRA caps the interest rate at 6%, MLA relief caps interest and fees at a 36% Military Annual Percentage Rate during the period of active duty.