Licensing Requirements For Entities Providing Foreclosure Alternatives To Residential Borrowers - Q4 1998By the Division of Banks
An entity intends to provide services to residential borrowers in an effort to prevent foreclosure of the consumers' residential mortgages. Mass. Gen. Laws chapter 255E, section 2 sets forth the licensing requirements for mortgage brokers. An entity providing alternatives to foreclosure does not appear to fall under the mortgage broker licensing requirement, provided it does not assist in placing, finding or negotiating mortgage loans. If the entity helps lenders to repay mortgage payments more than thirty-days past due, then it must be licensed as a collection agency under Mass. Gen. Laws chapter 93, section 24. Additionally, such entities should consult the Commonwealth's framework for operating credit services organizations, found in M.GL. c. 93 §§ 68A-68E.