NOTICE: Comment Period on Regulatory Bulletin 5.1-101 Extended Until Friday, September 8, 2006
July 25, 2006
SUBJECT: REVISED REGULATORY BULLETIN 5.1-101
MORTGAGE LENDER AND MORTGAGE BROKER LICENSING EXEMPTION GUIDELINES & ENFORCEMENT POLICY FOR UNLICENSED ENTITIES AND ACTIVITIES
To the Chief Executive of the Licensee Addressed:
The purpose of this letter is to inform you of the Division of Banksâ€™ (the "Division") intention to revise its existing Regulatory Bulletin 5.1-101 (the "Bulletin"), applicable to licensed mortgage lenders and mortgage brokers, and to provide licensed entities with a copy of the proposed revisions in advance of its issuance by the Division.
The proposed Bulletin sets forth the Divisionâ€™s revised policy relative to the licensing exemption in G.L. c.255E, Â§2 for individuals acting in the capacity of a mortgage lender or mortgage broker who are either employed by or associated with and under the direction of a licensed mortgage lender or mortgage broker. In summary, the policy has been revised as follows:
Permits employees or associated individuals to work part-time or full-time on behalf of a licensee and eliminates the requirement that such individuals engage in the activity they are seeking to perform under the direction of the licensee as their primary occupation.
Requires licensees to certify that they have completed investigations of individuals and determined them to possess required qualifications.
Requires licensees to complete a statement of accountability for all individuals, including individuals who may be considered "employees," working in the capacity of a lender or broker under the direction of the licensee.
The Bulletin has also been revised to include guidance relative to office locations of licensed mortgage lenders and mortgage brokers, including specific guidance on permissible branching arrangements and the concept of "net branching".
Additionally, the enforcement policy provisions of the existing Bulletin have been updated to reflect certain statutory changes enacted in 2004.
Attached is a copy of the proposed Regulatory Bulletin 5.1-101 with Attachment I.
The Division is pleased to accept comments on the Bulletin from interested parties which should be submitted by September 8, 2006 via email to firstname.lastname@example.org or via mail addressed to Steven L. Antonakes, Commissioner of Banks, One South Station, Boston, MA 02110.
Very truly yours,
Steven L. Antonakes
Commissioner of Banks