By the Division of Banks

Mortgage Lender and Broker License Number Disclosure On Signs

Licensed mortgage lenders and brokers must disclose the type and number of their license in all advertisements pursuant to 209 CMR 42.15. Additionally, such licensees must prominently post their licenses or copies thereof in each place of business pursuant to 209 CMR 42.13(3). Although the regulations governing the licensing of mortgage lenders and brokers do not define an "advertisement", the term is defined as "a commercial message in any medium that promotes, directly or indirectly, a credit transaction," under Mass. Gen. Laws chapter 140D § 1. It is the position of the Division of Banks that an exterior and/or interior building sign that only identifies the location of the licensee's office does not promote directly or indirectly a credit transaction. Therefore, such a sign would not require the licensee's number and type of license. However, an exterior sign used to display not only a company's name but also interest rates and/or current programs would directly or indirectly be promoting a credit transaction. Consequently, such a sign would require a licensee's number and type of license to be displayed.