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Each of these loan types is exempt from the provisions of the Truth in Lending Act EXCEPT:

  1. A loan for an empty lot on which a store will be built

  2. A mortgage for a borrower's primary residence

  3. A personal loan of $30,000 that is not secured by real property

  4. A loan with less than four payments

The correct answer is: A mortgage for a borrower's primary residence

The reasoning behind the selection of the mortgage for a borrower's primary residence as the option that is not exempt from the provisions of the Truth in Lending Act is rooted in the intent of the act itself. The Truth in Lending Act (TILA) was established to promote informed use of consumer credit by requiring disclosures about its terms and costs. Mortgages for primary residences fall under TILA requirements because they often involve significant sums and long repayment periods, directly affecting consumers' financial wellbeing. In contrast, loans for empty lots, personal loans not secured by real property, and loans with fewer than four payments often have different regulatory considerations and may fall outside TILA's jurisdiction. For instance, a loan for an empty lot primarily serves a business purpose and thus may not be covered. Personal loans that are not secured by real property typically involve lesser amounts and risks, leading to potential exemptions in some regulations. Lastly, loans structured with fewer payments generally differ in scope and consumer implications, allowing for wider exemptions. Understanding these distinctions helps clarify why a mortgage for a primary residence is subject to the detailed disclosures and provisions set forth by TILA.