Licensure Requirement For Mortgage Wholesaler - Q4 1999

By the Division of Banks

Massachusetts General Laws chapter 255E requires that any person or entity which makes or issues commitments for five or more residential mortgage loans in a consecutive twelve month period on 1-4 family owner-occupied property in the Commonwealth obtain a mortgage lender license from the Division. However, chapter 255E does not require a license for an entity that purchases existing mortgage loans from a Massachusetts lender. It has been the consistent position of the Division that a wholesale lender that simply purchases existing mortgage loans is not required to be licensed in Massachusetts. However, in the event that a company funds the loans and closes same in its own name as reflected on the mortgage documents, it would be required to obtain a mortgage lender license.