What is a condition for a loan not to be subject to the Residential Mortgage Lending Act?

A loan not being subject to the Residential Mortgage Lending Act can occur if it is structured to be repaid in less than 90 days. This exception is based on the nature of the loan and the regulatory intent of the act, which primarily governs long-term residential mortgage lending. The act is designed to apply to loans intended for longer durations, typically associated with home purchases and refinances. Loans that are short-term and meant to cover immediate financial needs, such as bridge loans or temporary financing, fall outside the act's jurisdiction.

In contrast, the other options involve characteristics that do not exempt a loan from being subject to the act. A loan amount exceeding $100,000 does not matter concerning the applicability of the act as it typically applies to smaller amounts as long as they are residential. Government guarantees may provide a secondary layer of support but do not inherently exempt the loan from regulations concerning residential mortgages. Similarly, loans for investment properties still fall under the act since they are related to lending practices for residential real estate. This understanding emphasizes the significance of the loan's term as it determines relevance to the act.