By the Division of Banks

Mortgage Brokers Prohibited From Providing Truth-In-Lending Disclosures

It has been the consistent position of the Division that the Massachusetts Truth-In-Lending statute (Mass. Gen. Laws ch. 140D) and its regulation 209 CMR 32.00 require that creditors provide certain disclosures to the borrower in a credit transaction. Based on a strict construction of the statute and regulation, adopted in part to protect consumers from being confused as to the roles of lenders and brokers, mortgage lenders expressly are responsible for making Truth-In-Lending disclosures. Accordingly, mortgage brokers cannot make such disclosures to first mortgage applicants on behalf of lenders. See Opinion No. 97-121 and Opinion No. 97-134 for further discussion of these issues.