May 17, 2007
SUBJECT: REVISED REGULATORY BULLETIN 5.1-102
EDUCATION AND EXPERIENCE REQUIREMENTS FOR MORTGAGE LENDER AND MORTGAGE BROKER LICENSING
To Licensees and Any Interested Parties:
The purpose of this letter is to inform you of proposed changes to Regulatory Bulletin 5.1-102 (the "Bulletin"), relative 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 of Banks (the "Division"). Any interested party who may consider seeking a license in the future is also invited to review and comment on these proposals. The changes to the Bulletin shall not apply to applicants seeking renewal of such licenses.
The proposed Bulletin sets forth the Division's revised policy relative to the education and experience requirements that applicants for licensure as mortgage lenders and mortgage brokers must satisfy in order to obtain such a license pursuant to General Laws chapter 255E and 209 CMR 42.00 et seq. The revised education and experience requirements were based upon recommendations developed by a Working Group on Rules and Enforcement which was assembled to implement the ideas discussed during the Mortgage Summit held in November 2006. In summary, the policy has been revised as follows:
- Increases the experience required to obtain a mortgage lender license to five years of full-time business experience and three years of full-time business experience to obtain a mortgage broker license;
- Formalizes the Division's position that individuals designated by an applicant to perform in the capacity of a branch manager must individually satisfy the education and experience requirement;
- Formalizes the Division's position that, in determining whether the applicant has satisfied the experience requirement, no consideration will be granted to business experience obtained while working for: (i) an unlicensed entity or individual which was required to be licensed under G.L. c. 255E during the relevant period or (ii) an unlicensed branch office location of a licensed entity or individual;
- Removes the option to submit evidence of the completion of a formal course of mortgage industry training to substitute for a portion of the business experience requirement; and
- Removes the two year experience requirement for applicants who will oversee other individuals conducting business under the applicant's license due to the increased experience requirement which will be applicable to all applicants.
A copy of Regulatory Bulletin 5.1-102 containing the proposed revisions is enclosed.
The Division is pleased to accept comments on the Bulletin from interested parties which should be submitted by June 8, 2007 via email to: email@example.com or via mail addressed to: Steven L. Antonakes, Commissioner of Banks, One South Station, 3rd Floor, Boston, MA 02110.
Very truly yours,
Steven L. Antonakes
Commissioner of Banks