General Mortgage Lender Licensing Requirements - Q4 1998

Mass. Gen. Laws chapter 255E governs the licensing of residential mortgage lenders. The entity in whose name the loan is closed, as reflected in the loan documents, is the entity which must be licensed as a mortgage lender under said chapter 255E. Any entity, including a trust, which originates more than four mortgage loans in a consecutive twelve-month period must be licensed by the Commonwealth. This licensing requirement applies to mortgages on 1-4 family, owner-occupied real estate, and does not apply to investment or non-owner occupied real estate. Once the numerical threshold of five mortgage loans has been reached, the entity must be licensed. Pursuant to M.G.L. c. 93 § 70, an attorney licensed in the Commonwealth must issue a certification of title to the mortgagee and the mortgagor as part of the loan transaction.