By the Division of Banks

Originating Loans Secured By First Liens On Residential Manufactured Homes

Mass. Gen. Laws c. 255D governs the licensing of entities engaged in the financing of the sales contract for the purchase of manufactured homes in which real estate is not included in the transaction. Companies engaging in the indirect financing of manufactured homes, by purchasing retail installment sales agreements from retail sellers in the Commonwealth, must be licensed as sales finance companies. If the company desires to originate loans for the real estate to be occupied by the manufactured home, a mortgage lender license would be required by Mass. Gen. Laws chapter 255E. Such a company wishing to make direct loans, in the amount of $6,000.00 or less, to purchasers of manufactured homes, would require a small loan agency license, pursuant to Mass. Gen. Laws chapter 140, section 96. The servicing and collection of such loans would not require a license unless such activities were done on the behalf of other creditors. In the latter case, Mass. Gen. Laws chapter 93, section 24 requires such companies to obtain a collection agency license.