Proposed new regulation 209 CMR 54.00: Mortgage Lender Community Investment
Overview of Proposed new regulation 209 CMR 54.00: Mortgage Lender Community Investment
Pursuant to the provisions of Massachusetts General Laws chapter 255E, section 8, and in accordance with Massachusetts General Laws chapter 30A, section 2, a public hearing will be held on Tuesday, July 29, 2008 at 10:00 a.m., One South Station, Hearing Room A on the 5th Floor, Boston, Massachusetts, at which oral comments will be received by the Division of Banks relative to the establishment of a proposed new regulation, 209 CMR 54.00: Mortgage Lender Community Investment.
The proposed regulation implements a recent amendment to section 8 of chapter 255E of the General Laws, which establishes a requirement for evaluating certain mortgage lenders' records of meeting the mortgage credit needs of the Commonwealth. This provision applies to licensed lenders who make 50 or more residential mortgage loans in the previous calendar year by establishing performance tests, standards for evaluation, and ratings to be assigned evaluating each mortgage lender's record of meeting specified mortgage credit needs in Massachusetts. This record will include efforts to meet residential mortgage credit needs in low- and moderate-income neighborhoods, consistent with the safe and sound operation of the mortgage lender. Under these provisions, the Commissioner must examine a lender for compliance with the new requirements and issue a public rating of the lender's performance and may take a lender's performance rating into consideration in a license renewal application or other application to the Division. This amendment to section 8 of said chapter 255E was added by SECTION 13 of Chapter 206 of the Acts of 2007.
Written comments may be submitted to the Division on the proposed regulation until 5:00 p.m. on August 1, 2008. A copy of the proposed regulation is available at, and may be obtained from, the Massachusetts Division of Banks, One South Station, Boston, Massachusetts 02110 or at www.state.ma.us/dob.
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Written comments accepted until August 1, 2008.