Exemption From Licensing Requirements For Non-Profit Corporations
Pursuant to Mass. Gen. Laws ch. 255E § 2. Certain persons or entities who are engaged in the business of a mortgage lender or mortgage broker are required to be licensed by the Division unless otherwise exempted. The statute provides an exemption from licensing for "any non-profit agency or corporation incorporated under the laws of the Commonwealth for the purpose of assisting low and moderate income households in the purchase or rehabilitation of family residences of four units or less and which holds tax-exempt status granted under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code." It is the position of the Division that a non-profit mortgage corporation incorporated under the laws of the Commonwealth would be exempt from licensing under Mass. Gen. Laws ch. 255E § 2 if it receives tax-exempt status from the Internal Revenue Service. In the event that such status is not granted, the mortgage corporation would not be exempted and would be required to obtain a mortgage lender's license. If the mortgage corporation is a separate non-profit corporation from its parent corporation, the exemption status of the parent corporation will not extend to the subsidiary mortgage corporation.