The regional Mortgage Review Boards provide an independent review option for an applicant who received a residential mortgage loan denial and who believes his/her application was denied on the basis of the location of the property. For the purpose of reviews conducted by the Mortgage Review Boards, “residential mortgage loan denial” is defined as the denial of an extension of credit to finance or refinance the purchase of a first lien on residential property located in the Commonwealth of four units or less and occupied in whole or in part by the mortgagor.
A mortgagee must include with each residential mortgage loan denial, as defined above, a notice instructing the applicant of the right to appeal the denial to the appropriate mortgage review board. The content of the notice shall conform substantively with the form attached as Appendix A.
The Mortgage Review Board shall review all documentation relative to each appeal to determine whether the loan was denied because the property is located in a specific neighborhood or geographical area. If the Mortgage Review Board determines that the denial was made on the basis of the location of the property, the Mortgage Review Board shall refer the application back to the mortgagee, with a recommendation that the mortgagee reconsider the decision. The Board may also take such other action it deems appropriate including, but not limited to, referring any apparent violation of applicable law or regulation to the appropriate state or federal regulator for further investigation.