By the Division of Banks

Licensing Requirements For Financing Manufactured Homes

If the purchaser of a manufactured home owns the real estate on which the home is to be placed, and if the loan is to be secured by a first lien on both the manufactured home and the real estate, this would be considered a residential mortgage under Mass. Gen. Laws chapter 255E. A lender making such loans must obtain a mortgage lender license if it originates five or more such loans in a consecutive twelve-month period.

If a direct loan is secured only by a lien against the manufactured home itself, and not the real estate, the Commonwealth requires no license, unless such loans total $6000 or less. Mass. Gen. Laws chapter 140, section 96 requires that lenders making loans of $6000 or less, for personal, family or household purposes, at an interest rate exceeding 12% obtain a small loan license.

It is the position of the Division of Banks that persons who are licensed as mortgage lenders and small loan companies do not have to maintain an office in the Commonwealth. An entity would not be required to form a domestic corporation in order to obtain these licenses.