Inquiry As To Whether Loan Officers Based At A Real Estate Office Require Separate Branch Approval - Q3 1999

By the Division of Banks

Mass. Gen. Laws chapter 140, section 96-114A, inclusive, and its implementing regulation 209 CMR 12.00 et seq govern small loan agencies in the Commonwealth. Section 102 of said chapter 140 states, in part, that an additional license must be obtained for each place where business of a small loan agency is to be conducted. The regulation set forth at 209 CMR 12.07 states that a licensee who wishes to carry on its business at any location in addition to the address on its original license shall obtain the prior approval of the Commissioner. The Division has concerns that consumers may be confused as to how and where to contact the licensed agency as the loan officers will perform some functions of a small loan agency from the real estate office and other functions pertaining to the same loan at a different location. Accordingly, an additional license must be acquired for a small loan agency to rent desk space from a real estate company associated with said agency.