January 24, 2008
To the Chief Executive of the Institution Addressed:
This letter is to inform you that the Division of Banks (the "Division") recently finalized Regulatory Bulletin 5.2-101 . Regulatory Bulletin 5.2-101, which became effective on January 24, 2008, sets forth guidance relative to the establishment and maintenance of the corporate surety bond by licensed mortgage lenders and mortgage brokers. Also effective on this date, the Division adopted a sample Mortgage Lender Bond Form and Mortgage Broker Bond Form in order to facilitate the implementation of the provisions of the regulatory bulletin. The sample bond forms can be obtained on the Division's website by following the links to Regulatory Bulletin 5.2-101 as described below.
As you will recall, amendments to 209 CMR 42.03(2)(a)(2) and 209 CMR 42.06(2)(a)(2) require that a new applicant for a mortgage lender and/or mortgage broker license, filing such application after September 7, 2007, must submit an executed corporate surety bond with the license application. All current mortgage lender and mortgage broker licensees, which held such license(s) under General Laws chapter 255E, section 2 as of September 7th, will be required to demonstrate compliance with the amendments to 209 CMR 42.03 and 209 CMR 42.06 by December 31, 2008.
The Division appreciates the time taken by those individuals who submitted comments on the proposed regulatory bulletin and the sample bond forms. All licensed mortgage lenders and mortgage brokers should carefully review Regulatory Bulletin 5.2-101 which is available on the Division's web site at www.mass.gov/dob under 'News and Updates' as well as 'Legal Resources.'
Very truly yours,
Steven L. Antonakes
Commissioner of Banks