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Opinion Summary of Selected Opinion 98-206

Date: 10/04/1998
Organization: Division of Banks
Docket Number: 98-206

This opinion was issued during the fourth quarter of 1998.

Table of Contents

Summary of Selected Opinion 98-206

Mass. Gen. Laws chapter 140, section 96 requires that any person, unless otherwise exempted, making loans of $6,000.00 or less and charging interest in excess of 12% per annum must be licensed as a small loan agency by the Division. An entity intending to make loans, with a minimum amount of $7,000.00, to owners of mobile homes located on rented land, need not be licensed as a small loan agency. Additionally, as the loan is not secured by a mortgage on owner-occupied, 1-4 family real estate, the lender need not obtain a mortgage lender license under M.G.L. c. 255E. Even if a license is not required to make mobile home loans, the Commonwealth's Truth-In-Lending law, M.G.L. c. 140D and 209 CMR 32.00, does apply.