By the Division of Banks

Licensing Requirements For Mortgages That Are "Table Funded"

Mass. Gen. Laws chapter 255E requires any person engaged in the business of making mortgage loans or issuing commitments for mortgage loans, to obtain a mortgage lender license from the Division of Banks, if the person acts as a mortgage lender for residential mortgage loans five or more times in a consecutive twelve-month period. If mortgage loans are being closed in the name of an entity that meets the other requirements of the statute, it must be licensed as a mortgage lender in the Commonwealth. However, if a mortgage loan is immediately sold or assigned to an investor, the investor need not be licensed to purchase the loan. Note that neither M.G.L. ch. 255E nor Regulation 209 CMR 42.00 recognize the term "table funded."