Yes, the amended Military Lending Act rules will cover a consumer-purpose loan secured by a vacant lot, unless the loan purpose is to finance the initial construction of a dwelling on the vacant lot.

In general, the amended Military Lending Act rules cover all consumer-purpose loans, with several specific exemptions, including an exemption for residential mortgages. The residential mortgage exemption covers “any credit transaction secured by an interest in a dwelling, including a transaction to finance the purchase or initial construction of the dwelling, any refinance transaction, home equity loan or line of credit, or reverse mortgage.” As a result, mortgages secured by dwellings will be exempt from the amended rules, but other consumer-purpose mortgages may be covered. If a loan is secured by a vacant lot without any dwellings, it will be covered by the amended rules, unless it is financing the construction of a dwelling on the vacant lot.

For resources related to our guidance, please see:

• 32 CFR 232.2(a)(1) (as amended by final rule effective October 1, 2016) (“This part applies to consumer credit extended by a creditor to a covered borrower, as those terms are defined in this part. . . .”)

• 32 CFR 232.3(f)(2) (as amended by final rule effective October 1, 2016) (“ . . . consumer credit does not mean (i) A  residential mortgage, which is any credit transaction secured by an interest in a dwelling, including a transaction to finance the purchase or initial construction of the dwelling, any refinance transaction, home equity loan or line of credit, or reverse mortgage; . . .”)