By the Division of Banks


1. Does the Division plan to amend its regulation, 209 CMR 32.00 et seq., to conform to the Federal Reserve System's Regulation Z?

The Division is drafting amendments to its regulation to ensure 209 CMR 32.00 is at least as consumer protective as Regulation Z.

2. Does the Division plan to amend its regulation, 209 CMR 42.16 (Loan Origination and Compensation Agreement) to incorporate the limitations described within the federal Regulation Z at section 226.36(d)?

The model form presented under 209 CMR 42.16 will have to be reviewed in conjunction with the drafting of any amendment to 209 CMR 32.00 et seq. that addresses loan originator compensation.

3. When will the Division's amendments be effective?

The Division is required to publish any proposed amendment and seek public comment before enacting regulation. Any proposal will be posted to the Division's website at and said posting will include the date of the required public hearing. The Division has begun the process to amend the regulations and a public hearing will be announced in the next several weeks.

4. How will compliance be evaluated by the Division in those areas where an inconsistency exists due to recent changes to Regulation Z being in effect while changes to 209 CMR 32.00 et seq. are in the process of being promulgated?

An institution regulated by the Division of Banks must comply with the Division's regulation(s). In those cases where federal law or regulation is more protective, as the Division has determined is the case with these recent amendments to Regulation Z, compliance with Regulation Z will be deemed compliance with 209 CMR 32.00 et seq.