Mortgage Brokers And Lenders Licensing Exemption
It is the position of the Division of Banks that individuals engaged primarily in the capacity of a mortgage broker or mortgage lender under Mass. Gen. Laws chapter 255E would be eligible for an exemption from licensing as being "associated with" and "under the direction of" a licensed lender or broker. For the exemption to be effective, however, the relationship must be exclusive and the licensee must complete a Statement of Accountability on behalf of the individual and the individual would be required to complete an Exemption Affidavit. The Division has previously opined that individuals whose primary occupation was that of an accountant, attorney or financial planner would not be eligible to claim a licensing exemption as an individual "associated with" and "under the direction of" a licensed lender or broker. See Opinion # 96-221 and Opinion # 97-061. The purpose of the statutory exemption was to exempt persons associated with the licensee who are not employees but who act in the capacity of a mortgage broker or lender as independent contractors. The requirement for completion of a Statement of Accountability and Exemption Affidavit was implemented by the Division to ensure accountability on the part of the licensee for the actions of individuals engaging in mortgage broker or lender activities under their direction.