By the Division of Banks

The purpose of this email is to provide you with additional information and instruction regarding the submission of: (1) your Massachusetts Mortgage Lender and/or Mortgage Broker Surety Bond; (2) your 2008 Mortgage Lender and/or Mortgage Broker Annual Report; and (3) your audited or reviewed financial statements for the period ending December 31, 2008. The instructions provided below will supplement the instructions previously provided during the 2009 Streamlined License Renewal Process. This email will also be available on the Massachusetts Division of Banks' ("Division") website at www.mass.gov/dob, by clicking on 'Apply for or Amend a License' under 'Online Services,' and following the links.

Massachusetts Surety Bond

As of December 31, 2008, all Mortgage Lender and Mortgage Broker licensees in Massachusetts have been required to maintain a surety bond in accordance with the provisions of Regulatory Bulletin 5.2-101. Please review the following instructions carefully as they govern the procedures for filing your original, notarized surety bond form(s) with the Division.

  • Mortgage Brokers: The Division's regulation 209 CMR 42.06(2)(a) requires Mortgage Brokers to maintain a surety bond of $75,000, using the MASSACHUSETTS MORTGAGE BROKER BOND FORM which may be found on the Division's web site at www.mass.gov/dob, by clicking on 'Forms and Applications' under 'Industry Services', and following the links.

    • The original, notarized surety bond must be MAILED to the Division by March 31, 2009 at the address below:

      Massachusetts Division of Banks
      ATTN: Mortgage Lender/Broker Licensing Unit
      1000 Washington Street, 10 th Floor
      Boston, MA 02118-6400

    • If any licensee previously filed an original bond form with the Division as part of the licensee's most recent license renewal application, the Division's records have been updated to reflect the submission and the bond form will be filed by the Division with the Office of the Treasurer and Receiver General of the Commonwealth.

    • Please note that Mortgage Brokers which also hold a Mortgage Lender license must also obtain a Mortgage Lender Bond.

  • Mortgage Lenders: The Division's regulation 209 CMR 42.03(2)(a) requires Mortgage Lenders to maintain a surety bond in a sum between $100,000 and $500,000, such amount to be based on the aggregate annual dollar amount of Massachusetts mortgage loans closed by the licensee during the prior year. The MASSACHUSETTS MORTGAGE LENDER BOND FORM may be found on the Division's web site at www.mass.gov/dob, by clicking on 'Forms and Applications' under 'Industry Services', and following the links.

    • For additional instruction on calculating bond amounts, please see the Division's Regulatory Bulletin 5.2-101.

    • The original, notarized surety bond must be MAILED to the Division by March 31, 2009 at the address below:

      Massachusetts Division of Banks
      ATTN: Mortgage Lender/Broker Licensing Unit
      1000 Washington Street, 10 th Floor
      Boston, MA 02118-6400

    • If any licensee previously filed an original bond form with the Division as part of the licensee's most recent license renewal application, the Division's records have been updated to reflect the submission and the bond form will be filed by the Division with the Office of the Treasurer and Receiver General of the Commonwealth.

    • Please note that Mortgage Lenders which also hold a Mortgage Broker license must also obtain a Mortgage Broker Bond of $75,000.

Mortgage Lender/Broker 2008 Annual Report

In accordance with the Division's amended regulation 209 CMR 42.10, Mortgage Lender and Mortgage Broker licensees are required to submit a completed Annual Report form by March 31, 2009. The Mortgage Lender/Mortgage Broker 2008 Annual Report Form is available on the Division's website at www.mass.gov/dob, by clicking on 'Forms and Applications' under 'Industry Services', and following the links to the report form. This report must be MAILED to the Division by March 31, 2009 at the address below:

Massachusetts Division of Banks
ATTN: Mortgage Lender/Broker Licensing Unit
1000 Washington Street, 10 th Floor
Boston, MA 02118-6400

Please use the link provided above to access the current version of the Mortgage Lender/Mortgage Broker 2008 Annual Report Form as the Division amended the form used during prior years. Any licensee who completes and submits an outdated version of the form which was saved from prior years will be required to submit an amended Annual Report using the current version.

Please be advised that a $50.00 per calendar day late fee will be assessed to all licensees that fail to submit the Mortgage Lender/Mortgage Broker 2008 Annual Report by March 31, 2009.

Audited or Reviewed Financial Statements

Audited or reviewed financial statements, including a balance sheet, income statement, and statement of cash flows, are required to be submitted within 90 days of the end of the licensee's fiscal year end. Additional instructions governing the form of the financial statements are provided within the Annual Report Form. However, please note that the Division has changed the filing procedures from prior years for submitting the financial statements. Beginning March 9, 2009, licensees should not mail paper financial statements to the Division with the completed Annual Report Form. Rather, licensees will be required to file financial statements as PDF files through the Nationwide Mortgage Licensing System (NMLS). Further information and instruction will be posted on the NMLS website as it becomes available. Please consult www.stateregulatoryregistry.org periodically for updates.

Therefore, between March 9 th and March 31, 2009, all Mortgage Lender and Mortgage Broker licensees with a fiscal year end date of December 31 st are required to file the following through the NMLS:

  • Mortgage Brokers: Within 90 days of the end of a licensee's fiscal year end, mortgage brokers must submit AUDITED or REVIEWED financial statements prepared by an independent Certified Public Accountant (CPA) in accordance with: (a) Generally Accepted Accounting Principles, and (b) in accordance with either Generally Accepted Auditing Standards (GAAS), or with the Statement on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants (AICPA). Financial statements must include a Balance Sheet, Income Statement and Statement of Cash Flows and all relevant notes thereto.

  • Mortgage Lenders: Within 90 days of the end of a Licensee's fiscal year end, mortgage lenders must submit AUDITED financial statements prepared by an independent Certified Public Accountant (CPA) in accordance with Generally Accepted Accounting Principles, and in accordance with Generally Accepted Auditing Standards (GAAS). Financial statements must include a Balance Sheet, Income Statement and Statement of Cash Flows and all relevant notes thereto.

Licensees with a fiscal year end date other that December 31 st, will be required to submit to the Division financial statements, in paper format, for the twelve month period ending December 31, 2008 with their Annual Report Form. Any such licensee will then be required to submit their audited or reviewed financial statements in PDF format through the NMLS within 90 calendar days of their fiscal year end. For licensees with a fiscal year end date other that December 31 st only, financial statements for the period ending December 31, 2008, should be MAILED to the Division by March 31, 2009 at the following address: Massachusetts Division of Banks, ATTN: Mortgage Lender/Broker Licensing Unit, 1000 Washington Street,10 th Floor, Boston, MA 02118-6400.

If you have any questions regarding the filing instructions described above, or any other information outlined in this email, please contact the Division at 617-956-1500, extension 61480, or by email at DOBMortgageRenewal@state.ma.us.