Notifying Mortgage Review Board Of Pre-Qualification Application Rejections - Q4 1998By the Division of Banks
Mass. Gen. Laws chapter 167, section 14A, and its implementing regulations 209 CMR 39.00 et seq., established the Mortgage Review Boards to determine whether eligible mortgage loans were denied based on the location of the properties in question. It is the Division's long-standing policy that the Boards have no jurisdiction over mortgage loan denials where no specific property is identified. Pre-qualification or pre-approval applications typically do not identify specific property, thus, lenders are not required to issue the Notice of Appeal form with the applicant's denial letter. When examining applications which identify a specific property, including those for pre-qualification or pre-approval, and which contain enough information to permit the lender to make a credit decision, the lender must file a Notice of Appeal form if such applications are denied.