By the Division of Banks

Exemptions From Mortgage Lender Licensing Requirements For Federal Credit Unions; Borrower Creditworthiness

Mass. Gen. Laws chapter 255E requires that any person who intends to originate five or more residential mortgage loans in a consecutive twelve month period obtain a mortgage lender's license from the Division. Chapter 255E, section 2, however, exempts certain financial institutions from this licensing requirement because those institutions are regulated by other regulatory agencies or under other statutes. Among the institutions exempted from the licensing requirement are federally-chartered credit unions and any subsidiaries.

Additionally, neither the Division nor any statute of the Commonwealth makes any distinction between the creditworthiness of the borrower in a residential mortgage transaction. The determinative factor in mortgage lender licensing is whether the loan is secured by a first or subsequent lien on owner-occupied, 1-4 family residential property in the Commonwealth.