Public Hearing on Proposed Amendments to Regulations 209 CMR 43.00, 48.00, and 53.00

Pursuant to the provisions of Massachusetts General Laws chapter 171, section 16; chapter 93, section 24D; and chapter 183, section 28C, and in accordance with Massachusetts General Laws chapter 30A, section 2, a public hearing will be held on Wednesday, April 9, 2014 at 10:00 a.m., 1000 Washington Street, Hearing Room 1-E, Boston, Massachusetts, at which the Division of Banks will receive oral comments relative to the adoption of proposed amendments to the following regulations: 209 CMR 43.00: Audit Requirements for Credit Unions; 209 CMR 48.00: Licensee Record Keeping; and 209 CMR 53.00: Determination and Documentation of Borrower's Interest.

The proposed amendments to 209 CMR 43.00 will clarify the existing regulation concerning the responsibilities of a state-chartered credit union’s Auditing Committee; remove the requirement for the Auditing Committee to notify the Commissioner of Banks of their selected accountant; and specify that credit unions that are not required to have an outside opinion audit performed must meet certain audit requirements in lieu of an opinion audit. Language has also been added to clarify the minimum requirements for engagement letters that are provided to the Auditing Committee by compensated auditors.

The proposed amendments to 209 CMR 48.00 are designed to modernize the regulations to better address electronic records and to include requirements for maintaining updated information in the Nationwide Multi-State Licensing System (NMLS) relating to the location and accessibility of a licensee’s books and records. In addition, the proposed amendments to this regulation extend the proposed record keeping requirements to third party loan servicers, foreign transmittal agencies, check cashers, and check sellers.

The purpose of the proposed amendments to 209 CMR 53.00 is to establish an additional “safe harbor” for any home loan that meets the definition of a “Qualified Mortgage” under the regulations of the Consumer Financial Protection Bureau (CFPB). A Qualified Mortgage would be deemed to be in the borrower’s interest under the regulation.

Additional changes may be made based on comments received at the public hearing or during the comment period.

Written comments may be submitted to the Massachusetts Division of Banks, 1000 Washington St., 10^th Floor, Boston, MA  02118-6400 or at dob.comments@state.ma.us until 5:00 p.m. on Wednesday, April 16, 2014.  A copy of the proposed amendments is available at, and copies may be obtained from, the Massachusetts Division of Banks or at www.mass.gov/dob