Mortgage Lender Licensing Exemption For Less Than Wholly Owned Subsidiary Of A National Association - Q2 2000

By the Division of Banks

A mortgage lender is a direct subsidiary of a national banking association, which owns 70% of the shares in its common stock. Section 2 of chapter 255E requires that any person or entity originating 5 or more residential mortgage loans in a consecutive twelve month period must obtain a license from the Commissioner of Banks unless otherwise exempted. Said section 2 contains an exemption for a national banking association or any subsidiary thereof. Consistent with Opinion 99-182, (See Digest Of Selected Opinion 4 th Quarter, 1999, pg. 2), it is the position of the Division that since the language of section 2 does not make a distinction between wholly-owned subsidiaries and subsidiaries which are not wholly-owned, a mortgage lender is exempt from being licensed as a mortgage lender in the Commonwealth, provided that the national banking association continues to be the majority owner of its common stock.

Recommended Content

People also viewed...

You recently viewed...

Personalization is OFF. Your personal browsing history at Mass.gov is not visible because your personalization is turned off. To view your history, turn your personalization on.

Learn more on our .

*Recommendations are based on site visitor traffic patterns and are not endorsements of that content.