Consumer Credit Regulation: 2.2.5.5b Residential Mortgage Exemption Does Not Apply to Timeshares
A federal court has examined whether a financed timeshare sale is exempt from the MLA as a residential mortgage—that is, as a credit transaction secured by a dwelling. “Dwelling” is defined as a residential structure, and the court found that a timeshare was not a residence. As a result, it found that the MLA’s mortgage exemption did not apply.108