Licensing Requirements For Entity Providing Telemarketing Services For A Licensed Mortgage Lender - Q4 1998

By the Division of Banks

Mass. Gen. Laws chapter 255E, section 2 requires that any person who for compensation or gain, finds, places, or assists in the placement of residential mortgage loans for another entity must be licensed as a mortgage broker. The Division interprets this language to include the activity of referring prospective mortgage loan customers to a lender. A tele-marketing operation that calls prospective customers to ascertain their interest in doing business with a particular licensed mortgage lender, even if the payment for the service is a flat hourly wage and is not dependent on applications received or loans originated, must be licensed under said chapter 255E. Section 2 exempts employees of a licensed mortgage broker and anyone acting as a mortgage broker fewer than five times within any period of twelve consecutive months.