Massachusetts law about mortgage loans, brokers and lenders

A compilation of laws, regulations, cases and web sources on mortgages compiled by the Trial Court Law Libraries. See Related Links below for foreclosure information.

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Table of Contents

Massachusetts laws

MGL c.183, § 61 Escrow and interest on escrow accounts

MGL c.184, § 17B Mortgage loan application; required statements and information

MGL c.184, § 17B 1/2 Variable or adjustable-rate subprime loans for first-time home loan borrowers

MGL c.255E Licensing of certain mortgage lenders and brokers

MGL c.266, § 33 Larceny; false pretenses relating to contracts, banking transactions or credit

MGL c.266, § 34 Larceny; inducement to part with property

MGL c.266, § 35A False material statements or omissions during or in connection to mortgage lending process

MGL c.277, § 62C Jurisdiction over violations of § 35A of chapter 266

Massachusetts regulations

209 CMR 41 Licensing of mortgage loan originators

209 CMR 42 Licensing of mortgage lenders and mortgage brokers

209 CMR 54 Mortgage lender community investment

940 CMR 8 Mortgage brokers and mortgage lenders
Defines prohibited unfair and deceptive advertising practices and "expand[s] the scope of previous home improvement loan regulations to apply to all mortgage loans."

Selected case law

Bank of New York Mellon vs. Timothy Morin & others, 96 Mass. App. Ct. 503 (2019)
Reversed summary judgment in favor of plaintiff bank, over issues of material fact including whether foreclosure protections applied and if the lender took all reasonable steps to avoid the action.

Thornton vs. Thornton, 97 Mass. App. Ct. 694 (2020)
A “payable on demand” mortgage without reference to a maturity date remained enforceable for thirty-five years from the recording date. Expiration of a statute of limitations is no bar to recovery under a mortgage, so long as the underlying debt remains unpaid.

Wells Fargo Bank v. Comeau, 92 Mass. App. Ct. 462 (2017)
Provides extensive discussion of the doctrine of equitable subrogation.

Web sources

Loans and mortgages, Mass. Division of Banks.
Learn more about lending products and services that may be available to you in Massachusetts, including pay day loans, pawn brokers, adjustable-rate loans, debt collection and more.

Mortgages, Consumer Financial Protection Bureau.
Learn about how to get a mortgage, understanding statements, what to do if you have trouble paying, know your rights, and how to file a complaint.  Includes definitions of key words.

Mortgages and assignments, Lowell Registry of Deeds. 
Explains how mortgages are recorded and the difference between a mortgage and a promissory note.

Nationwide mortgage licensing system, Conference of State Bank Supervisors.
"The Nationwide Mortgage Licensing System (NMLS) is a web-based system that will allow state licensed mortgage lenders, mortgage brokers, and loan officers to apply for, amend, update or renew a license online for all participating state agencies using a single set of uniform applications." Verify a financial service provider here.

Print sources

Consumer law, 4th ed. (Mass Practice v.36A), Thomson Reuters, 2021 with supplement.
Sections 28:41 Required disclosures for all mortgage loans and 28:42 Counseling of certain subprime borrowers.

Lender liability law and litigation, Matthew Bender, loose-leaf.

Mortgage lending, NCLC, 2019.

Real estate law with forms, 5th ed., (Mass. Practice v.28-28B), Thomson West, 2016 with supplements, Chapter 9 Mortgages.


Last updated: December 28, 2022

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