Applicability Of Massachusetts General Laws Chapter 183, Section 63B To A Nationally Chartered Banking Institution - Q1 2000By the Division of Banks
Massachusetts General Laws chapter 183, section 63B states, in part, that no mortgagee who makes a loan to be secured by a mortgage or lien on real estate located in the Commonwealth in conjunction with which a mortgage deed evidencing the same is to be recorded in a registry of deeds shall deliver said deed for the purpose of recording unless said mortgagee has caused the full amount of the proceeds to be transferred to the mortgagor, mortgagor's attorney or mortgagee's attorney.
Said section 63B does not contain an exemption for nationally chartered banking institutions or any other entities. It is the Division's position that the statute applies to any mortgagee who makes a loan secured by a mortgage or lien on real estate located in the Commonwealth in conjunction with which a mortgage deed evidencing the same is to be recorded in a registry of deeds. The consistent position of the Division is that the term "mortgagee" as used in said section 63B should be given its plain meaning. Whereas the statute is not limited in its reference to "mortgagee", it is the Division's position that the term includes any and all lenders, including but not limited to, state or federally chartered financial institutions, licensed lenders, insurance companies, corporations or individuals.