PETITION OF:

The Commonwealth of Massachusetts

In the Year Two Thousand and Seven.

AN ACT TO REGISTER MORTGAGE LOAN ORIGINATORS

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1.

CHAPTER 255F.

Section 1. Definitions

As used in this chapter the following words shall have the following meanings:

“Division”, The Commonwealth of Massachusetts Division of Banks.

“Commissioner”, the Commissioner of the Division of Banks.

“Entity”, a person or entity that is a “licensee” as defined under M.G.L. Chapter 255E, Section 1, regulated by the Commonwealth of Massachusetts Division of Banks.

"Mortgage loan originator" means a natural person employed by or under exclusive contract with a mortgage lender or mortgage broker that is required to be licensed under Mass. Gen. Laws ch. 255E, § 1 et seq., and who for or with the expectation of a fee, commission or other valuable consideration and whose job responsibilities include direct contact with applicants during the mortgage loan application process or mortgage loan pre-approval process, solicits, negotiates, acquires, arranges or makes mortgage loans.

“Mortgage loan”, a loan to a natural person made primarily for personal, family or household purposes secured wholly or partially by a mortgage on residential property.

“Residential property”, real property located in the commonwealth having thereon a dwelling house with accommodations for four or less separate households and occupied, or to be occupied, in whole or in part by the obligor on the mortgage debt.

Section 2. Mortgage loan originator registration requirement

No natural person shall act as a mortgage loan originator unless such person has first registered as a mortgage loan originator with the Commissioner. An entity shall not knowingly employ or retain a mortgage loan originator unless the mortgage loan originator is registered hereunder.

Section 3. Registration; form.

The entity who employs a mortgage loan originator shall register each mortgage loan originator in writing and in the form prescribed by the Commissioner, signed under the pains and penalties of perjury, and shall contain the name and address of the entity with whom a mortgage loan originator is employed or associated and other information as the Commissioner may require. The registration fee for each mortgage loan originator shall be $50. Each registrant shall be registered upon receipt by the Commissioner of a properly completed registration form and upon payment of the required fees.

Section 4. Registration information; changes; notice requirements

Each registration shall state the name and address of the mortgage loan originator. In the event that the mortgage loan originator is no longer associated with or employed by the entity, the entity shall be obligated to so notify the Commissioner. Such notice shall be in writing and provide such other information as the Commissioner may require.

Section 5. Registration renewal

Registrations shall expire annually. Each entity shall, annually, on or before a date to be determined by the Commissioner, submit a registration renewal of all mortgage loan originators with the Commissioner. Said registration renewal shall be on a form prescribed by the Commissioner, signed under the pains and penalties or perjury, containing such information as said Commissioner may require, including evidence satisfactory to the Commissioner that the registrant has completed at least eight (8) hours of residential mortgage lending continuing education courses provided by an approved training facility, including in-house programs, as determined by the commissioner. .

Section 6. Registration suspension or revocation; notice and hearing

The Commissioner may suspend, revoke or refuse to renew any registration pursuant to this chapter if said Commissioner finds that: (a) the registrant has violated any provision of this chapter or any rule or regulation adopted hereunder, or any other law applicable to the conduct of its business; (b) any fact or condition exists which, if it had existed at the time of the original registration, would have warranted the Commissioner in refusing to register the mortgage loan originator; or (c) the registrant has committed any fraud, misappropriated funds or misrepresented any of the material particulars of a mortgage loan transaction.

Except as provided in section seven ( ), no registration shall be revoked or suspended except after notice and a hearing thereon pursuant to MGL Chapter 30(a). Any order issued pursuant to this section shall be subject to de novo review as provided in MGL Chapter 30(a).

A registrant may withdraw a registration by delivering to the Commissioner written notice that it thereby withdraws such registration, but such withdrawal shall not affect the civil or criminal liability of the registrant for acts committed before such withdrawal.

Section 7. Commissioner's order to cease and desist from unlawful act or practice; prior notice and opportunity for hearing; temporary order

(a) If the Commissioner determines, after giving notice of and opportunity for a hearing, that a registrant has engaged in or is about to engage in an act or practice constituting a violation of a provision of this chapter or a rule, regulation or order hereunder, he may order such registrant to cease and desist from such unlawful act or practice and take such affirmative action as in his judgment will effect the purposes of this chapter.

(b) If the Commissioner makes written findings of fact that the public interest will be irreparably harmed by delay in issuing an order under subsection (a) he may issue a temporary cease and desist order. Upon the entry of a temporary cease and desist order, the Commissioner shall promptly notify, in writing, the registrant and the entity affected thereby, that such order has been so entered, the reasons therefor, and that within twenty days after the receipt of a written request from such registrant, the matter will be scheduled for hearing to determine whether or not such temporary order shall become permanent and final. If no such hearing is requested and none is ordered by the Commissioner, the order shall remain in effect until it is modified or vacated by the Commissioner. If a hearing is requested or ordered, the Commissioner, after giving notice of and opportunity for a hearing to the registrant subject to said order, shall, by written finding of facts and conclusions of law, vacate, modify or make permanent the order.

(c) No order under this section, except an order issued pursuant to subsection (b), may be entered without prior notice of and opportunity for a hearing. The Commissioner may vacate or modify an order under this section upon finding that the conditions which required such an order have changed and that it is in the public interest to so vacate or modify.

Any order issued pursuant to this section shall be subject to de novo review as provided in MGL Chapter 30(a).

Section 8. Civil actions filed by Commissioner

The Commissioner may enforce the provisions of this chapter, or restrain any violations thereof, by filing a civil action in any court of competent jurisdiction. Nothing herein shall be construed so as to create a private cause of action.

Section 9. Penalties
Whoever violates any provision of section two or any rule or regulation made thereunder by the Commissioner shall be punished by a fine of not more than five hundred dollars. Each day such violation occurs or continues shall be deemed a separate offense.