By the Division of Banks

Licensing Of Employees Of A Licensed Mortgage Lender Who Also Are Employed By An Affiliate Securities Firm

Mass. Gen. Laws chapter 255E provides that any person who is "employed by or associated with a licensed mortgage broker or mortgage lender in the capacity of a mortgage broker or mortgage lender under the direction of said licensed mortgage broker or mortgage lender" shall not be required to obtain a license as a mortgage broker or lender. The Division has taken the position that employees of licensed mortgage brokers or lenders, employed in the capacity of a mortgage broker or lender, would not be required to obtain a separate license. The purpose behind the employee exemption is to recognize the general nature of the employment relationship as one in which employees work under the control and direction of employers, in this case licensed mortgage brokers or lenders, who are responsible and liable for the actions of those employees. It is the Division's position that persons who are dual employees of a licensed mortgage lender and an affiliate securities firm, and who will be referring current clients of the securities firm to the licensed mortgage lender, are not required to obtain separate mortgage broker licenses in order to make those referrals.