By the Division of Banks

Licensing Requirements For Wholly-Owned Subsidiaries Of Out-Of-State, State-Chartered Banks

Mass. Gen. Laws chapter 255E requires that any person or entity originating five or more residential mortgage loans in a consecutive twelve-month period secured by owner-occupied, 1-4 family property in the Commonwealth, must obtain a mortgage lender license from the Commissioner of Banks. Wholly-owned subsidiaries of out-of-state, state-chartered banks are not exempt from the mortgage lender licensing requirements of chapter 255E, even though the bank itself is exempt from said requirement.