Licensing Requirements For Seller-Financed Mortgages
Any person who makes five or more residential mortgage loans in a consecutive twelve month period is required to obtain a mortgage lender license from the Commissioner of Banks unless otherwise exempted pursuant to Mass. Gen. Laws chapter 255E. The statute contains no exception for seller financing. It is the position of the Division of Banks that a seller of residential property who makes five or more mortgage loans, secured by said residential property, in a consecutive twelve month period is required to be licensed as a mortgage lender under Mass. Gen. Laws chapter 255E unless otherwise exempted.