Licensing Massachusetts Commercial Loan Brokers Who Access An Internet Web Site For The Purpose Of Originating Commercial Mortgage Loans On Behalf Of Institutional Borrowers - Q4 1999By the Division of Banks
A web site on the Internet containing information on commercial properties and of the business entity seeking to find a mortgage loan for such property is set up by a Delaware limited liability company. Mortgage brokers will access this site for the purpose of finding loans for commercial borrowers. The brokers will be paid a fee by the borrowers for finding a suitable loan. Institutional lenders may access the site to determine if there are borrowers and properties on which they may be interested in lending mortgage money. In this case, the lender would pay a fee for accessing the site upon the closing of the loan. No lending is done and the information on the web site deals exclusively with commercial properties and non-individual borrowers such as corporations, partnerships, and limited liability companies.
Massachusetts General Laws chapter 255E requires the licensing of mortgage lenders and mortgage brokers only for owner-occupied, one to four family residential property. Therefore, it is the position of the Division that there is no license required to set up a web site to disseminate information on commercial properties in order to generate fees for commercial mortgage loans.