September 17, 2009

To All Interested Parties:

This letter is to inform you of several actions the Division of Banks (Division) is taking to implement Chapter 44 of the Acts of 2009, <em>An Act Adopting The Federal Secure And Fair Enforcement For Mortgage Licensing Act of 2008</em> (Chapter 44) . These actions include the following:

  • Filing of emergency regulations, which became effective on September 15, 2009, to amend 209 CMR 41.00, <em>The Licensing of Mortgage Loan Originators</em> pdf format of    Amendments to 209 CMR 41.00: The Licensing of...  and 209 CMR 42.00: <em>The Licensing of Mortgage Lenders and Mortgage Brokers</em> pdf format of    Amendments to 209 CMR 42.00: The Licensing of...  .

  • Scheduling of a public hearing on October 21, 2009 for the purpose of making the emergency amendments to 209 CMR 41.00 and 209 CMR 42.00 permanent, and to consider other changes based on the public comments. The comment period will end on October 30, 2009.

  • Posting on the Division's website of more than two dozen Frequently Asked Questions on the implementation of Chapter 44 of the Acts of 2009 and its impact on mortgage loan originators.

  • Proposing amendments pdf format of    Proposed Amendments to Regulatory Bulletin...  to Division of Banks Regulatory Bulletin 5.2-101 regarding Surety Bond Requirements for Mortgage Lenders, Mortgage Brokers and Mortgage Loan Originators. The comment period on the proposed amendments ends on October 16, 2009.

  • Rescission of the Division's Regulatory Bulletin 5.1-105: Educational Requirements for Mortgage Loan Originators, effective as of September 16, 2009.

Amendments to 209 CMR 41.00 and 209 CMR 42.00

  • Emergency Regulations - Effective September 15, 2009

    The Division of Banks filed emergency amendments to 209 CMR 41.00: <em>The Licensing of Mortgage Loan Originators</em> pdf format of    Amendments to 209 CMR 41.00: The Licensing of...  and 209 CMR 42.00: <em>The Licensing of Mortgage Lenders and Mortgage Brokers</em> pdf format of    Amendments to 209 CMR 42.00: The Licensing of...  on September 15, 2009, which became effective on that date. A copy of the amendments is enclosed. In addition, the amendments are available on the Division's website under News & Updates.

  • Permanent Regulations

    As noted above, the amendments filed as emergency regulations on September 15, 2009 became effective immediately. However, pursuant to the Administrative Procedures Act, the Division has 90 days to complete the process relative to the filing of amendments to regulations on a permanent basis. Additional changes may be made based on comments received at the public hearing or during the public comment period. Accordingly, the Division will hold a public hearing on Wednesday, October 21, 2009 at 10:30 a.m. at One South Station, 5 th Floor, Hearing Room A as part of the process to make the enclosed amendments permanent. The public comment period will end on Friday, October 30, 2009. A copy of the hearing notice is also enclosed.

Frequently Asked Questions on Chapter 44 of the Acts of 2009

Questions relative to Chapter 44 have been raised to the Division relative to its various effective dates and implementation requirements. Accordingly, the Division has currently posted more than two dozen Frequently Asked Questions (FAQs) relative to Chapter 44 on its website. The FAQs address questions of general interest asked to date of the Division, and will continue to be updated as additional questions of general interest are raised and responded to by the Division.

Proposed Amendments to Regulatory Bulletin 5.2-101 regarding Surety Bond Requirements for Mortgage Lenders, Mortgage Brokers and Mortgage Loan Originators

Pursuant to section 12 of chapter 255F of the General Laws, as amended by Chapter 44, as a condition of obtaining and holding a mortgage loan originator license, a mortgage loan originator must now be covered by a surety bond. The proposed amendments pdf format of    Proposed Amendments to Regulatory Bulletin...  to Regulatory Bulletin 5.2-101 (Bulletin) set forth the requirements relative to the establishment and maintenance of the required surety bond coverage for mortgage loan originators as follows:

  • A mortgage loan originator employed by licensed mortgage broker or lender will be covered by the licensed mortgage broker's or lender's corporate surety bond and shall not be required to obtain an individual surety bond.

  • A mortgage loan originator that is employed by or associated with a mortgage entity that is exempt from the mortgage broker and lender licensing requirements will satisfy the surety bond requirement by either: obtaining an individual surety bond in the amount of $25,000; or being covered under the mortgage entity's corporate surety bond, which shall be in the form and amount as set forth in the Bulletin.

Rescission of Regulatory Bulletin 5.1-105: Educational Requirements for Mortgage Loan Originators

Regulatory Bulletin 5.1-105: Educational Requirements for Mortgage Loan Originators has been rescinded as of September 16, 2009. The registration and approval of licensed mortgage loan education providers and courses will now be conducted electronically through the National Mortgage Licensing System and Registry ("NMLS"), as provided for by Chapter 44. Accordingly, the Division will no longer issue approvals for educational providers, residential mortgage courses, and continuing education. Educational providers and course approvals previously granted by the Division remain active until October 31, 2009. Additional information is available on the Frequently Asked Questions on Chapter 44 of the Acts of 2009, under the heading "Mortgage Loan Originator Education Requirements".

If you have any questions, please contact David J. Cotney, Chief Operating Officer, at 617-956-1510.

Very truly yours,

Steven L. Antonakes
Commissioner of Banks