Authority Of Mortgage Broker To Issue A Conditional Approval Letter - Q1 1999

By the Division of Banks

Mass. Gen. Laws chapter 255E defines a "mortgage lender" as any person or entity who is in the business of making mortgage loans or issuing commitments for mortgage loans. The Division would view a conditional approval letter as a commitment. Since a commitment letter may only be issued by a licensed mortgage lender in the Commonwealth, it is the position of the Division that a broker cannot issue a commitment letter, a conditional approval letter, or other similar letter relative to a mortgage loan.