Licensing Of Loan Production Offices
There is no statute or regulation which governs the establishment of loan production offices by Massachusetts chartered banks. In the absence of a specific statute or regulation, the Division has no objection to the establishment of loan production office in another state by a state-chartered bank. In addition, a state-chartered bank is authorized by Mass. Gen. Laws ch. 167E to make mortgage loans anywhere regardless of whether the bank has a physical presence in that state or county. The activities at the out-of-state loan production office must be limited to loan production activities such as marketing material and loan applications. No deposit taking activities or other banking services may be offered at this office. In addition, the investment in a loan production office must be included in the bank's investment in bank premises pursuant to Mass. Gen. Laws ch. 167F § 2 (9).