By the Division of Banks

Exemptions From Mortgage Lender & Broker Licensing Requirements For Wholesale Mortgage Bankers

Mass. Gen. Laws chapter 255E, section 2 requires that any person who makes residential mortgage loans on 1-4 family, owner-occupied property in the Commonwealth must obtain a mortgage lender's license from the Division. It has been the consistent position of the Division that the entity in whose name the loan is closed is the entity which much be licensed as a mortgage lender. In the event that a wholesale mortgage company, or other entity, is funding the loan, but the loan is being closed in the name of a licensed mortgage lender and the mortgage is assigned immediately to the wholesale mortgage company, said company would not be required to be licensed as it would be considered a subsequent purchaser.