By the Division of Banks

Mortgage Brokers Providing Disclosures On Behalf Of Mortgage Lenders

Under Mass. Gen. Laws chapter 184 § 17D and 209 CMR 38.03, a mortgage lender must provide a prospective first mortgage borrower with a copy of a Uniform Mortgage Loan Cost Worksheet and the Uniform Mortgage Information Disclosure Sheet at the time of application, or before application if requested by the borrower. Additionally, Mass. Gen. Laws chapter 140D and 209 CMR 32.00 et seq. governing Truth-in-Lending require that creditors provide certain disclosures. Based on a strict construction of the statutes and regulations adopted in part to protect consumers from being confused as to the roles of lenders and brokers, it has been the position of the Division of Banks that mortgage lenders are expressly responsible for making such disclosures. Accordingly, mortgage brokers cannot make such required disclosures to first mortgage applicants on behalf of lenders even if such disclosures are provided on the lender's letterhead.