By the Division of Banks

License Requirements For Entities With Exclusivity Contracts

A mortgage broker is defined as "any person who for compensation or gain, or in the expectation of compensation or gain, directly or indirectly negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement or find mortgage loans on residential property for others" under Mass. Gen. Laws chapter 255E, § 1. Any person "employed by or associated with a licensed mortgage broker or mortgage lender in the capacity a mortgage broker or mortgage lender under the direction of said license mortgage broker or mortgage lender" is also exempt under said section 2.

The position of the Division of Banks is that such an exemption is available only to individuals and not to a corporate entity. The relationship between the licensee and the individual must be exclusive and the individual must execute an Exemption Affidavit to that effect. The licensee must execute a Statement of Accountability for all activities of the individual associated with it. The individual seeking the exemption must be primarily engaged in the activity it is seeking to perform under the direction of a licensed mortgage broker.