Public Hearing Notice Proposed Amendments to 209 CMR 18.00 and 209 CMR 48.00
Overview of Proposed Amendments to 209 CMR 18.00 and 209 CMR 48.00
Proposed Amendments to 209 CMR 18.00: Conduct of the Business of Debt Collectors, Student Loan Servicers, and Third Party Loan Servicers
209 CMR 48.00: Licensee Record Keeping
Pursuant to the provisions of G.L. c. 93L, as added by St. 2020, c. 358, s. 65 and in accordance with the provisions of Massachusetts General Laws chapter 30A, section 2, a public hearing will be held on Wednesday, August 4, 2021 at 10:00 a.m. at which comments will be received by the Division of Banks (Division) relative to amendments to 209 CMR 18.00 et seq. and 209 CMR 48.00 et seq., which were filed as Emergency Regulations effective July 1, 2021.
The link providing information regarding the hearing will be posted by Tuesday, August 3, 2021 by 12:00 noon, and will be available at www.mass.gov/dob/. While it is not necessary to pre-register to provide oral testimony, anyone who emails their intention to provide oral testimony at the hearing in advance will receive preference in the order of testimony provided. Such optional notice must include the person’s name, telephone number, and email address and should be sent to firstname.lastname@example.org via email by Tuesday, August 3, 2021 by 5:00 p.m. In addition, written testimony can also be provided in advance via email to email@example.com. If there are any questions, please contact the Division’s Legal Unit at 617-956-1525.
209 CMR 18.00: Conduct of the Business of Debt Collectors, Student Loan Servicers, and Third Party Loan Servicers
Chapter 358 of the Acts of 2020 sets forth several provisions relative to student loan servicing, including the creation of G.L. c. 93L, which requires the licensure of certain student loan servicers by the Division. The amendments to 209 CMR 18.00 would expressly incorporate the new student loan servicer licenses into the current regulation setting forth the requirements for licensure, as well as providing standards for conduct and prohibited practices, among other provisions. The amendments add the particular application requirements and licensing standards for student loan servicers, as well as the requirements for licensure as an automatic federal student loan servicer. In addition, the amendments incorporate the student loan servicers and automatic federal student loan servicers into the applicable existing provisions governing the requirements for office locations, changes in ownership, and the filing of annual reports. There are also amendments relative to unfair servicing practices as well as standards of conduct and unfair or deceptive acts or practices. In addition, there is a section relative to confidentiality of examination and investigation records for debt collectors, student loans servicers, automatic federal student loan servicers, and loan servicers.
209 CMR 48.00: Licensee Record Keeping
The purpose of 209 CMR 48.00: Licensee Record Keeping is to establish procedures and requirements for record keeping by the Division’s licensees. In order to implement Chapter 358, the amendments to 209 CMR 48.00 would expressly incorporate the new student loan servicer license into the regulation setting forth the record keeping requirements for all of the Division’s licensees. The amendments make the following changes: adding student loan servicers and automatic federal student loan servicers to the definition of “licensee” so that they are included within the requirements of the regulation; incorporating the specific record retention period for student loans servicers; and including the specific time period within which student loan servicers must respond to records requests from the Commissioner.
There are other technical updates to both regulations as well.
Written comments may be submitted to the Division on the proposed amendments until Wednesday, August 11, 2021 at 5:00 p.m. Copies of the amendments are available at, and copies may be obtained from, the Massachusetts Division of Banks, at www.mass.gov/dob/.