By the Division of Banks

Maximum Annual Percentage Rate (APR) & Other Limitations Affecting Mortgage Lenders & Brokers

Any lender subject to control, regulation or examination by an state or federal regulatory agency is exempt from the criminal usury limit pursuant to Mass. Gen. Laws chapter 271, § 49(e). Accordingly, the criminal usury limitations in Mass. Gen. Laws chapter 271, § 49 do not apply to Massachusetts-licensed mortgage lenders. Licensed mortgage lenders, however, are subject to the Truth-In-Lending disclosure requirements pursuant to Massachusetts General Laws chapter 140D and its implementing regulations found at 209 CMR 32.00 et seq. Certain closed end home mortgages, including those with an APR at consummation which exceed by more than 10% points the yield on Treasury securities having comparable periods of maturity, are subject to additional disclosure requirements under 209 CMR 32.32. Each violation of a Truth-In-Lending disclosure requirement may result in a fine of up to $5,000 and/or imprisonment of up to one year pursuant to Mass. Gen. Laws chapter 140D, § 31. Also, any creditor that fails to comply with such requirements may be liable for damages as set forth under Mass. Gen. Laws chapter 140D, § 32.