The Division's high cost home loan regulations at 209 CMR 32.34(1)(d) prohibit a creditor from making a high cost home mortgage without first receiving certification from a counselor with a third-party nonprofit organization, approved by the United States Department of Housing and Urban Development, a housing financing agency of the Commonwealth, the Division of Banks, or the regulatory agency which has jurisdiction over the lender, that the borrower has received counseling on the advisability of the loan transaction.
Also, as of January 31, 2008, pursuant to G.L. c. 184, s. 17B, all Massachusetts borrowers opting for a variable or adjustable rate subprime loan must complete first-time home counseling and receive certification from a DOB certified counselor located in the State of Massachusetts. To be considered an approved counseling agency, the third party nonprofit organization should be certified by any of the following institutions: 1) the United States Department of Housing and Urban Development; 2) MassHousing; 3) the Massachusetts Homeownership Collaborative; 4) NeighborWorks; and 5) or the Division of Banks of the Commonwealth of Massachusetts.
Note: Given changes in the mortgage market, the DOB housing counseling list has been removed from this page. If you need additional information, please contact our consumer assistance line at 617-956-1501.