Selected Opinions regarding Mortgages: Lenders and Brokers

The publication of these Selected Opinions, as well as the previously issued Annual and Quarterly Digests, is part of the Division's ongoing effort to continue to improve its communication with all those who have a vested interest in the financial services industry. Through these Selected Opinions and Digests, the Division offers its perspective on current issues and questions in the financial services industry. As always, requests for opinions from the Division must be addressed directly to the Commissioner of Banks, Massachusetts Division of Banks, 1000 Washington Street, 10th Floor, Boston, MA 02118-6400 and must include a statement of all relevant facts, cites to applicable statutes and regulatory documents and an analysis of those materials supporting your position. The Division acknowledges receipt of opinion requests by assigning each a number. Any subsequent inquiries to the Division about an opinion request should refer to this opinion number.

Opinion on the use of Electronic Disclosures and Signatures in Mortgage Transactions

Opinion on whether G.L. c. 183, s. 63A precludes a loan modification under the HAMP program

Opinion on providing credit under the Community Reinvestment Act (CRA) for lenders who participate in the Neighborhood Stabilization Program (NSP) - April 27, 2009

Opinion on exemption for certain nonprofits from mortgage licensing statutes

Opinion on Loan Modification and Protecting Lien Status

Industry Advisory Letter on Mortgage Loan Prepayment Fee Limitations Pursuant to G.L. C. 183, '56, As Amended by Chapter 268 of the Acts of 2004, and Its Applicability to Open-End Home Equity Lines of Credit

1. Opinion on a mortgage lending program designed to comply with Islamic law. 
2. Whether third party servicer registration is required for a mortgage lender that outsources servicing obligations to a subservicer.

Whether a Fee Should Be Permitted upon the Conversion of an Adjustable Rate Mortgage Loan to a Fixed Rate Loan - August 27, 2003

Prepayment Penalty in the Event of Refinancing with another Financial Institution - June 12, 2003

Whether Mortgage Servicers are Required To Be Licensed - April 14, 2003

Whether a Company Which Provides Certain Loan Processing Functions Is Required To Be Licensed as a Mortgage Broker - April 14, 2003

Requirements applicable to national banks wishing to offer insurance premium financing in Massachusetts - April 16, 2002

Do existing licenses cover those acting as a third party mortgage processor - June 12, 2002

Mortgage Broker Licensing Exemption for a Person Who Brokers the Sale of Existing Mortgage Loans Between Investors - April 2, 2002

Mortgage Broker Licensing Exemption for a Company Providing Support Service for a Licensed Mortgage Lender - March 6, 2002

Does a person referring customers to lender though an internet website need a license - July 8, 2002

Does a Mobile Home Broker Require Licenses to Operate - January 15, 2002

Licensing Exemptions for a Loan Processing Center of a Licensed Mortgage Lender - March 15, 2002

Licensing Requirement for a Foreign Bank to Perform Mortgage Servicing Activities and Origination Services - March 15, 2002

Does Subsidiary of a Bank Chartered by Puerto Rico Need To Be Licensed as a Mortgage Lender - September 6, 2001

Exemption For Collection Agency License For Transactions Involving Electric Rate Reduction Bonds-March 3, 2001

Does Conducting Specified Non-consumer Contact Activities at Home by a Licensee's Employee Require a Branch Office Approval for that Home - September 26, 2001

Are Insurance Agents of Insurance Company Affiliated with a Bank Exempt from Licensing - July 19, 2001

Prepayment Penalty for Partial Prepayment of Mortgage Loan - June 21, 2001

Providing Bi-weekly Mortgage Payment Service - December 11, 2001

Does a Premium Paid for Loan Sold Have To Be Disclosed - August 2, 2001

Mortgage Broker License Requirements for Foreign Bank Subsidiary - May 15, 2001

Telephone Screening Calls for Potential Clients Do Not Require A Broker License - Q4 2000

Authority To Do Business In The Commonwealth By A Utah Chartered Loan Corporation - Q4 2000

Construction and Residential Loans Considered Residential Transactions For the Purposes of Mortgage Lender Licensing - Q3 2000

The Ability To Offer Real Estate Brokers Non Cash "Points" For Referrals - Q3 2000

Licensing Exemption In Light Of The Recent Passage of Chapter 50 Of The Acts Of 2000 - Q2 2000

Licensing Exemption For LLC That Purchases Mortgages That Are Not Closed In Its Own Name. - Q3 2000

Licensing Exemption For A Subsidiary Of A Federally Chartered Institution - Q2 2000

Mortgage Lender Licensing Exemption For Less Than Wholly Owned Subsidiary Of A National Association - Q2 2000

Jurisdiction of Review Boards As Applied To Certain Commercial Real Estate Loans - Q2 2000

Loan Programs Made Accessible For Consumers Through Website - Q2 2000

Exemption From Licensing For Direct Subsidiary Of A Federal Savings Bank - Q1 2000

License Requirement For Internet Company Brokering Business Loans - Q2 2000

Mortgage Brokers Paying Out Finders And Referral Fees - Q3 2000

Change In Interest Rate Option Included In Original Note Not A Revision Of Terms. - Q2 2000

Operating Under The D/B/A Name Of An Acquired Company - Q1 2000

Principal Payments At The Completion Of A Construction Loan - Q2 2000

Licensing Exemption For A Subsidiary Of a National Association 50% Owned By An Unaffiliated Entity - Q1 2000

Paying Off Outstanding Creditors In A Mortgage Refinancing Transaction - Q1 2000

Termination Or Cancellation Fee On Home Equity Lines Of Credit Originated In The Commonwealth - Q4 1999

Mortgage Lender License Exemption Of A Subsidiary Of A Savings Bank - Q4 1999

Fees For Brokering Small Loans - Q3 2000

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

Licensing Massachusetts Commercial Loan Brokers Who Access An Internet Web Site For The Purpose Of Originating Commercial Mortgage Loans On Behalf Of Institutional Borrowers - Q4 1999

State-Chartered Savings Bank Advancing Additional Funds To A Borrower As Part Of A Modification Of An Existing Mortgage Loan - Q4 1999

Tax Escrow Reporting Responsibilities of Mortgagees - Q1 2000

Licensure Of A Non-Profit Corporation Organized Out-Of-State - Q4 1999

Property Tax Escrow Requirements On Mortgage Loans In The Commonwealth - Q4 1999

Licensure Requirement For Mortgage Wholesaler - Q4 1999

Licensing Exemption For A Colorado Chartered Bank As A Mortgage Lender Under Massachusetts General Laws Chapter 255E - Q4 1999

Licensure Of A Marketing Information Company As A Mortgage Broker Pursuant To Massachusetts General Laws Chapter 255E - Q1 2000

A First Mortgage Loan Product As A Revision Of Terms Pursuant To Massachusetts General Laws Chapter 183, Section 63A - Q4 1999

Clarification Of Notice Provisions - Q3 1999

Licensing Requirement For Loan Processing Center - Q4 1999

On-Line Mortgage Applications - Q3 1999

Classes of Residential Mortgage Loans Requiring PMI - Q3 1999

Interest Rate On Insurance And Tax Escrow Accounts - Q3 1999

Licensing Requirements For Out-Of-State Corporation Intending To Originate Direct Loans For Acquisition Of Manufactured Home - Q3 1999

Licensing Requirements For Out-of-State Industrial Loan Company In The Commonwealth - Q3 1999

Inquiry As To Whether Transfer Of Stock To An Experienced Individual Is Sufficient To Satisfy The Experience Requirement Of The Division's Mortgage Broker Licensing Requirement - Q3 1999

Permissibility To Offer Incentive Program Of Frequent Flyer Mileage To Borrowers And Mortgage Brokers In Connection With Loans Originated Or Purchased By Lender - Q3 1999

Activities Not Requiring A Mortgage Broker License - Q3 1999

Timing Issues Related To Disbursement On A Non-Purchase Money Mortgage Loan - Q2 1999

Licensing Requirements For Limited Liability Companies Organized Under Delaware Law On A Series Basis - Q3 1999

Permissibility To Collect Separate Fees For Serving As A Mortgage Broker and Real Estate Broker In The Same Transaction - Q3 1999

Exemption From Licensing Requirements For Subsidiary Of A National Banking Association - Q2 1999

Licensed Mortgage Lender May Only Engage In The Business Of Making Mortgage Loans Under The Name As It Appears On The License - Q2 1999

Permissibility Of Mortgage Brokers Providing Disclosures To Borrowers On Behalf Of Mortgage Lenders - Q2 1999

Inclusion Of Attorney's Fees In Calculating The Annual Percentage Rate - Q1 1999

Applicability Of Restrictions On Late Fee And Prepayment Penalties On Residential Mortgage Loans To Federally-Chartered And Out-Of-State Banks - Q1 1999

Copies of past opinions may be obtained for a fee from the Division's Consumer Assistance Unit at (617) 956-1502, and must be paid for by check. The Division's Regulations, found in the Code of Massachusetts Regulations (CMR - agency code number 209), are available through the State House Bookstore, State House Room 116, Boston, Massachusetts, 02133. Please contact the bookstore directly for prices at (617) 727-2834.