Restrictions On Out-Of-State Banks Soliciting Mortgage Loans In Massachusetts
Mass. Gen. Laws chapter 255E prohibits any person from acting as a mortgage lender in the Commonwealth without first obtaining a license from the Commissioner. However, the statute contains an exemption for "any bank, trust company, or savings bank...organized under the laws of any other state." The position of the Division of Banks is that a license is not required for a commercial bank chartered in another state to engage in the business of a mortgage lender in Massachusetts. In the event that such a bank seeks to purchase existing mortgage loans, no license would be required pursuant to Mass. Gen. Laws chapter 255E.