On-Line Mortgage Applications - Q3 1999

By the Division of Banks

Mass. Gen. Laws chapter 93, section 51 sets forth the circumstances under which a consumer reporting agency may furnish a consumer report. There is no reference to obtaining a written authorization to obtain such report. This chapter, however, does not fall under the jurisdiction of the Division and further research may be required. Additionally, a licensed mortgage broker/lender offering an on-line application must comply with all applicable laws and regulations to which it is subject. The fact that the application is taken via the Internet does not relieve an entity from complying with all applicable regulatory provisions. Federal regulations, governing disclosure and other related requirements, should be reviewed, including, but not limited to, Regulation B, Regulation Z, and Regulation E. See also Opinion #97-260, 1 st Quarter 1998, page 4, Massachusetts Division of Banks Digest of Selected Opinions.