Exemption From Licensing Requirements For Subsidiary Of A National Banking Association - Q2 1999By the Division of Banks
Mass. Gen. Laws chapter 255E, section 2 establishes a licensing requirement for any person or entity which engages in the business of making mortgage loans or issuing commitments for mortgage loans. However, said section 2 exempts certain regulated entities from this licensing requirement and included in the list of the exempt entities contained in the statute is a "national banking association ... or any subsidiary." An entity applying for a mortgage broker license which will also become a wholly-owned subsidiary of a national bank will be exempt from the licensure requirement, although written confirmation of the finalization of the transfer of control must be sent to the Division. No such exemption exists in the Commonwealth's small loans statute, Mass. Gen. Laws chapter 140, sections 96 to 114A, inclusive.