Licensing Requirements For Investors In The Secondary Market
No statute or regulation limits a licensee's ability to sell real estate loans and attendant servicing rights to investors in the secondary market. Thus, a licensee which intends to sell loans in the secondary market does not need any type of license or approval of the Division of Banks in order to do so. It has also been the consistent position of the Division that no license is required under Mass. Gen. Laws chapter 255E in order to purchase mortgage loans which have been originated in Massachusetts. However, an investor servicing mortgage loans may require a collection agency license in order to collect "debts" as defined under 209 CMR 18.00 et seq. Also, no records in addition to those already required need be maintained relative to mortgage loans sold on the secondary market.