Establishment Of An LPO By An Out-Of-State Bank - Q4 2000By the Division of Banks
A Michigan state banking institution has a wholly owned subsidiary mortgage corporation, which holds a mortgage lender's license in the Commonwealth. Since the bank is a state-chartered banking institution in the State of Michigan, it would be exempt from being licensed as a mortgage lender or mortgage broker in this state provided that it operated under its own name. A subsidiary of such an out-of state institution is not exempt under section 2 of chapter 255E of the General Laws. In addition loan production offices are not governed by statute or regulation in the Commonwealth. An out-of-state bank may operate a loan production office in Massachusetts without any license or regulatory approval. Therefore, the bank may establish a loan production office in the Commonwealth without the approval of the Division.