Public Hearing Notice  Public hearing relative to proposed amendments: 209 CMR 20.00, 32.00, 42.00, 43.00, 50.00, 54.00, 55.00, 57.00

Pursuant to the provisions of M.G.L. c. 140, § 96; M.G.L. c. 140D, §§ 3 and 29; M.G.L. c. 167, §§ 1A and 6; M.G.L. c. 167E, § 7A; M.G.L. c. 171, §§ 6A, 16, and 65C½; M.G.L. c. 183, § 69; M.G.L. c. 183C; M.G.L. c. 255B, § 3; M.G.L. c. 255C, § 6; M.G.L. c. 255D, § 3; M.G.L. c. 255E, §§ 2 and 8; and in accordance with M.G.L. c. 30A, § 2, a public hearing will be held on Tuesday, July 15, 2025 at 10:00 a.m., One Federal Street, Room 6017, Boston, Massachusetts, at which the Division of Banks (Division) will receive oral comments relative to the proposed amendments to the following regulations:

• 209 CMR 20.00: Small Loans, Sales Finance Companies and Insurance Premium Finance Companies;
• 209 CMR 32.00: Truth in Lending;
• 209 CMR 42.00: The Licensing of Mortgage Lenders and Mortgage Brokers;
• 209 CMR 43.00: Audit and Security Requirements for Credit Unions;
• 209 CMR 50.00: Parity with Federal Credit Unions;
• 209 CMR 54.00: Mortgage Lender Community Investment;
• 209 CMR 55.00: Reverse Mortgage Loans; and
• 209 CMR 57.00: Flood Insurance.

209 CMR 20.00: Small Loans, Sales Finance Companies and Insurance Premium Finance Companies

The purpose of 209 CMR 20.00: Small Loans, Sales Finance Companies and Insurance Premium Finance Companies, is to provide the licensing and supervisory requirements applicable to the identified licensees. The proposed amendments would create consistency across the Division’s license types with regard to several provisions and eliminate another outdated provision in the regulation.

209 CMR 32.00: Truth in Lending

The purpose of 209 CMR 32.00, Truth in Lending, is to set forth the disclosure requirements for open and closed end credit. The Commonwealth maintains its own Truth in Lending Act, however, it largely mirrors the federal Truth in Lending Act, 15 U.S.C. § 1601 et seq. (TILA). The Division of Banks’ (Division) regulation currently aligns with TILA’s implementing regulation, the federal Regulation Z, except in cases where the Commonwealth’s statutes differ. The proposed amendment would update the Division’s regulation addressing timing requirements for loans with an adjustable rate.

209 CMR 42.00: The Licensing of Mortgage Lenders and Mortgage Brokers

The purpose of 209 CMR 42.00 is to establish procedures and requirements for the licensing and supervision of mortgage lenders and brokers under the provisions of M.G.L. c. 255E. The proposed amendments would update a provision in 209 CMR 42.14 to require disclosure of a unique identifier, rather than the lender’s license type and number, as well as the inclusion of a definition of “unique identifier.”

209 CMR 43.00: Audit and Security Requirements for Credit Unions

The purpose of 209 CMR 43.00 is to establish examination and audit requirements for Massachusetts-chartered credit unions (credit unions) and their auditing committees.  The frequency, scope and minimum requirements for credit union audits and share verifications are specified within 209 CMR 43.00.  In addition, 209 CMR 43.00 includes provisions relative to compliance with federal regulations relative to security and protection of credit unions.  The proposed amendments would update a provision in 209 CMR 43.05(3) relative to credit committees of credit unions to reflect that credit unions are no longer required by law to have these committees, as permitted by statute.  The proposed amendments would also make a technical amendment to the definition of a “Auditing Committee Review” in 209 CMR 43.02, to update the reference to the pertinent National Credit Union Administration authority.

209 CMR 50.00: Parity with Federal Credit Unions

The purpose of 209 CMR 50.00 et seq. is to specify authorized powers and activities of credit unions, pursuant to M.G.L. c. 171, §6A, and to establish procedures and requirements, applicable to credit unions seeking to exercise powers granted to or conduct activities authorized for federal credit unions under federal law, to the extent that such powers are not otherwise prohibited. The proposed amendments restructure and streamline procedural requirements by: allowing state-chartered credit unions to exercise certain authorities that previously required approval to be done by notice or neither approval nor notice; including some notice authorities to now require neither approval nor notice; reflecting changes set forth in the 2020 Credit Union Modernization Act; offering a broader scope for certain existing authorities, including subordinated debt authority, incidental powers, and credit union service organization (CUSO) authorities, and investment authorities; and new authority for certain incidental powers authorities.

209 CMR 54.00: Mortgage Lender Community Investment

The purpose of 209 CMR 54.00: Mortgage Lender Community Investment is to carry out the mortgage lender community investment purposes of M.G.L. c. 255, § 8 by establishing the framework and criteria by which the Commissioner of Banks (Commissioner) assesses a mortgage lender’s record of helping to meet the mortgage credit needs of the Commonwealth, including low- and moderate-income neighborhoods and individuals, consistent with the safe and sound operation of the mortgage lender, and by providing that the Commissioner takes that record into account in considering certain applications pursuant to 209 CMR 54.26. The proposed changes to 209 CMR 54.00 update citations regarding federal Regulation C, regarding Home Mortgage Disclosures.

209 CMR 55.00: Reverse Mortgage Loans

The purpose of 209 CMR 55.00 is to implement the additional consumer protections afforded by the law to reverse mortgage borrowers that fall within a certain income and asset threshold.  Pursuant to M.G.L. c. 167E, Section 7 or M.G.L. c. 171, Section 65C, a mortgagee is prohibited from  making a reverse mortgage loan unless the mortgagor has affirmatively opted in to the reverse mortgage and has received counseling from a counselor employed by a third-party organization whose counseling program has been approved by the Executive Office of Aging and Independence. The proposed amendments would update the regulation to reflect theat the law now authorizes the thrid-party counseling to take place via synchronous, real-time video conference or by telephone, in addition to in-person.  In addition, the amendments would update the regulation to refer to the Executive Office of Again and Independence.

209 CMR 57.00: Flood Insurance

The purpose of 209 CMR 57.00 is to implement the requirements of M.G.L. c. 183, s. 69 when a purchaser or owner of residential property is required to purchase or pay for flood insurance coverage on residential property located in a designated special flood hazard area.  The proposed amendment would update a provision in 209 CMR 57.04(3)(b) to eliminate a record retention requirement when multiple creditors or creditor representatives are involved in a single residential loan transaction.

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

To request interpretive services, please submit your request at least three (3) business days prior to the public hearing to Jennifer DeWitt at 617-956-1549 or jennifer.dewitt@mass.gov.

If there are any questions, please contact the Division’s Legal Unit at 617-956-1520.

Written comments may be submitted to the Division on the proposed amendments until Tuesday, July 22, 2025 at 5:00 p.m. to dob.comments@mass.gov.  Copies of the amendments are available at, and copies may be obtained from, the Massachusetts Division of Banks, at www.mass.gov/dob/.