Truth-In-Lending Requirements - Q4 1998

Massachusetts is one of four states which is exempt from the federal truth-in-lending act and its accompanying Regulation Z, as Mass. Gen. Laws chapter 140D and 209 CMR 32.00 have been determined to be substantially similar to the federal requirements. The method for calculating a mortgage loan's APR, including the fees and charges which may be excluded or must be included in that calculation, is set forth by 209 CMR 32.04. The Division has adopted the Regulation Z Staff Commentary as part of the state law, to the extent that it is consistent with M.G.L. c. 140D. Note that mortgage brokers should not distribute or prepare truth-in-lending disclosures for consumers. That responsibility falls on the mortgage lender in whose name the loan is closed. The lender also is responsible for the accurate calculation of the mortgage loan's APR and other compliance issues.