By the Division of Banks

Commercial Mortgage Lending

In the Commonwealth, a mortgage lender's license is required only to make mortgage loans for personal, family or household purposes secured wholly or partially by a mortgage on residential one- to-four family property located within Massachusetts pursuant to Mass. Gen. Laws chapter 255E. An entity located in the Commonwealth, but intending to engage in commercial lending for property located in Vermont, would not require a mortgage lender's license under said chapter 255E because such an entity would not be making mortgage loans on residential one-to-four family property in the Commonwealth. Prior to executing loan agreements, the entity should be aware that the Commonwealth's criminal usury statute, Mass. Gen. Laws chapter 271, section 49 limits the amount of interest and expenses on loans to twenty percent per annum, subject to certain exceptions.