July 19, 2007
Subject: Regulatory Bulletin 5.1-104: Statement on Subprime Mortgage Lending
To the Chief Executive of the Institution Addressed:
The purpose of this letter is to inform you of the Division of Banks' (Division) intention to issue
Regulatory Bulletin 5.1-104 
(Bulletin), applicable to licensed mortgage lenders and mortgage brokers, and to provide an opportunity to comment on the proposed Bulletin in advance of its issuance by the Division. The proposed Bulletin sets forth the Division's Statement on Subprime Mortgage Lending and can be found on the Division's web site at www.mass.gov/dob.
On June 29, 2006, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration (Agencies) issued an interagency statement relative to subprime mortgage lending. This interagency statement applies to all banks and their subsidiaries, bank holding companies and their nonbank subsidiaries, savings associations and their subsidiaries, savings and loan holding companies and their subsidiaries, and credit unions.
Recognizing that the federal interagency guidance does not cover a majority of loan originations in the Commonwealth, the Division, in cooperation with the Conference of State Bank Supervisors (CSBS), has developed a parallel statement for licensed mortgage brokers and mortgage lenders in the Commonwealth. The Division strongly supports the purpose of the statement adopted by the Agencies and is committed to promote the uniform application of consumer protections for all borrowers.
This Bulletin is intended to promote consistent regulation in the mortgage market and clarify how licensed mortgage brokers and mortgage lenders (referred to as "providers") can offer certain subprime mortgage products in a way that clearly discloses the risks that borrowers may assume.
In order to maintain regulatory consistency, this statement substantially mirrors the interagency statement, except for the deletion of sections not applicable to non-depository institutions.
The Division is pleased to accept comments on the Bulletin from interested parties which should be submitted by August 8, 2007 via e-mail to dob.comments@state.ma.us or by mail addressed to Steven L. Antonakes, Commissioner of Banks, One South Station, Boston, MA 02110.
Very truly yours,
Steven L. Antonakes
Commissioner of Banks