By the Division of Banks

Final Amendments Governing Mortgage Brokers and Mortgage Lenders
Effective December 1, 2006

209 CMR 42.12A is hereby amended by striking out 209 CMR 42.12A(6) and inserting in place thereof the following:

(6) It is a prohibited act or practice for a mortgage broker or mortgage lender to have a consumer sign a blank or incomplete mortgage loan application or mortgage loan documents.

(7) It is a prohibited act or practice for a mortgage broker or mortgage lender to sign a consumer's name to a mortgage loan application or mortgage loan documents on behalf of a consumer.

(8) It is a prohibited act or practice for a mortgage broker or mortgage lender to falsify income or asset information on a mortgage loan application or mortgage loan documents.

(9) It is a prohibited act or practice for a mortgage broker or mortgage lender to make false promises to influence, persuade or induce a consumer to sign a mortgage loan application or mortgage loan documents.

(10) It is a prohibited act or practice for a mortgage broker or mortgage lender to pressure or coerce a consumer to sign a mortgage loan application or mortgage loan documents by misrepresenting or omitting crucial information about the terms of the mortgage.

(11) It is a prohibited act or practice for a mortgage broker or mortgage lender to discourage a consumer in a mortgage loan transaction from seeking or obtaining independent legal counsel or legal advice.

(12) It is a prohibited act or practice for a mortgage broker or mortgage lender to engage in a pattern or practice of failing to make any disclosure to a consumer required by and at the time specified by any applicable state or federal law, regulation or directive.

(13) It is a prohibited act or practice for a mortgage broker or mortgage lender to fail to disclose the type and number of its license in an advertisement.

(14) It is a prohibited act or practice for a mortgage broker or mortgage lender for an employee or a person associated with and acting under the direction of a mortgage broker or a mortgage lender to advertise residential mortgage loan services without naming the licensee and disclosing the license number of the mortgage broker or mortgage lender under whose license the individual is acting.

(15) It is a prohibited act or practice for a mortgage broker or a mortgage lender to require a consumer to use the real estate brokerage services of a particular entity, agent or broker.

(16) A violation of 209 CMR 42.12A shall constitute grounds for the issuance of a cease and desist order under M.G.L. c. 255E, s. § 7 ; and shall constitute grounds for license suspension or revocation under M.G.L. c. 255E, s. § 6 and shall constitute grounds for an administrative fine or penalty under M.G.L. c. 255E, §§ 11 and 12.