PETITION OF:

SECTION 1. Section 1 of chapter 255E of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after the definition of “mortgage loan” the following definition:—

“Multi-state licensing system”, a system involving one or more states, the District of Columbia, or the Commonwealth of Puerto Rico established to facilitate the sharing of regulatory information and the licensing and application processes, by electronic or other means, for mortgage lenders and mortgage brokers.

SECTION 2. Section 3 of chapter 255E, as so appearing, is hereby amended by striking out said section and inserting in place thereof the following section: —

Section 3. The application for a license shall be in the form prescribed by the commissioner and shall contain the name and address or addresses where the business of the applicant is located and if the applicant is a partnership, association, corporation, or other form of business organization, the names and addresses of each member, director, and principal officer thereof or any individual acting in the capacity of the manager of an office location. Such application shall also include a description of the activities of the applicant, in such detail and for such periods as the commissioner may require, as well as such further information as the commissioner may require. The commissioner may require a background investigation of each applicant for a mortgage broker or mortgage lender license by means of fingerprint checks by the Criminal History Systems Board pursuant to section one hundred and seventy-two of section six of the General Laws, and the Federal Bureau of Investigation for state and national criminal history record checks. If the applicant is a partnership, association, corporation or other form of business organization, the commissioner may require a background investigation by means of fingerprint checks on each member, director, or principal officer of such applicant or any individual acting in the capacity of the manager of an office location. The information obtained thereby may be used by the commissioner to determine the applicant’s eligibility for licensing under this chapter. Receipt of criminal history record information by a private entity is prohibited. Each application for a license shall be accompanied by an investigation fee. Investigation and license fees shall be determined annually by the commissioner of administration under the provisions of section three B of chapter 7.

The commissioner is authorized to participate in a multi-state licensing system for mortgage lenders and mortgage brokers. The commissioner may, by regulation, establish requirements for participation by an applicant in a multi-state licensing system which may vary from the provisions set out in sections 3 and 5 of this chapter. The applicant shall pay any additional fee for a license or other participation in such multi-state licensing system.

SECTION 3. Section 5 of chapter 255E, as so appearing, is hereby amended by striking out the first six sentences and inserting in place thereof the following four sentences: —

Each license shall state the address at which the business is to be conducted and shall state the name of the licensee. If a licensee intends to carry on such business at any place other than the address on the license, he shall so notify the commissioner, in writing, at least thirty days prior thereto, and he shall pay a fee for such additional location at a reasonable cost as determined by the commissioner. Such notice shall contain the address of any such additional location and such other information as the commissioner may require; provided, however, that any such business shall at all times be conducted in the name of the licensee as it appears on the license. Such license shall not be transferable or assignable and shall expire annually on a date determined by the commissioner.

SECTION 4. Section 8 of chapter 255E, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence: —

Each licensee shall annually, on or before a date determined by the commissioner, file a report with the commissioner containing such information as said commissioner may require concerning the business and operations conducted by the licensee during the preceding calendar year in the commonwealth.

SECTION 5. Section 8 of chapter 255E, as so appearing, is hereby further amended by adding at the end thereof the following paragraph: —

The Commissioner shall preserve a full record of each such examination of a licensee including a statement of its condition. All records of investigation and reports of examination by the commissioner, including workpapers, information derived from such reports or response to such reports, and any copies thereof in the possession of any licensee under the supervision of the commissioner, shall be confidential and privileged communications, shall not be subject to subpoena and shall not be made public. For the purpose of this paragraph, records of investigation and report of examinations shall include records of investigation and reports of examinations conducted by any bank regulatory agency of the federal government and any other state, and of any foreign government which are considered confidential by such agency or foreign government and which are in possession of the commissioner. In any proceeding before a court, the court may issue a protective order in appropriate circumstances to protect the confidentiality of any such record and other than any such record on file with the court or filed in connection with the court proceeding be sealed and that the public be excluded from any portion of the proceeding at which any such record is disclosed. Copies of such reports of examination shall be furnished to a licensee for its use only and shall not be exhibited to any other person, organization or agency without prior written approval by the commissioner. The commissioner may, in his discretion, furnish to regulatory agencies of the federal government, of other states, or of foreign countries and any law enforcement agency, such information, reports, inspections and statements relating to the licensees under his supervision as he deems appropriate.