First, it should be an attribute on your post-closing loan checklist to assure that it’s obtained when required. This assures individual loan compliance.
As an auditor, we only look for MLA compliance when auditing consumer loans (doesn’t apply to mortgages). We sample all types of consumer loans/lines (vehicle, deposit secured, unsecured, other secured, etc.) and look for MLA compliance as one of our checklist attributes. It can be hit or miss (as was the case with vehicle secured loans). So far, we’ve not heard any concerns with this methodology.