Date: | 10/09/1997 |
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Organization: | Division of Banks |
Docket Number: | 97-245 |
This opinion was issued during the fourth quarter of 1997.
Date: | 10/09/1997 |
---|---|
Organization: | Division of Banks |
Docket Number: | 97-245 |
This opinion was issued during the fourth quarter of 1997.
Loans for personal, household or family purposes in the amount less than may $6,000 trigger the requirements of Mass. Gen. Laws chapter 140, § 96. In the event that a building supply company displays signs indicating that financing is available through a bank and provides interest rate sheets to customers, licensing requirements under said statute would not be triggered. Although such a building supply company may fall within the description of a "loan arranger", under Mass. Gen. Laws chapter 140, § 96, the building supply company would not be required to obtain a small loan license if it does not receive a fee for the referral services. Additionally, it is the position of the Division of Banks that the building supply company would not be required to register as a mortgage broker, even if the bank intends to secure the loans with a mortgage on the borrower's principal residence, if the building supply company does not receive any compensation or gain for its services in the transaction under Mass. Gen. Laws chapter 255E.