Licensing Exemption For A Subsidiary Of A National Bank - Q4 1999

By the Division of Banks

Massachusetts General Laws chapter 255E, section 2 requires that any person or entity originating five or more residential mortgage loans in a consecutive twelve-month period obtain a license from the Commissioner of Banks unless otherwise exempted. However, section 2 contains a specific exemption for a national banking association or any subsidiary thereof. It is the position of the Division that if as a result of an internal reorganization a subsidiary of a national bank is formed, the subsidiary is now exempt from the requirement of being licensed as a mortgage lender or a mortgage broker in the Commonwealth pursuant to said chapter 255E.