By the Division of Banks

Exemptions From Mortgage Lender Licensing Requirements

Mass. Gen. Laws chapter 255E, section 2 requires that any person or entity in the business of making mortgage loans or issuing commitments for mortgage loans obtain a mortgage lender's license from the Division. It has been the consistent position of the Division that making a mortgage loan means closing the loan in a lender's own name. It also has been the consistent position of the Division that the following activities do not evoke the mortgage lender's license requirement of said chapter 255E: (1) purchasing existing mortgages; and (2) being the wholly-owned subsidiary of a federal savings and loan association or a federal savings bank. Organizations which are exempt from Mortgage Lender Licensing requirements, however, may be required to comply with the Attorney General's collection regulations if such organizations engage in the collection of delinquent mortgage loans more than 30 days past due.