Related to:
Opinion

Opinion Summary of Selected Opinion 99-067

Date: 09/01/1999
Organization: Division of Banks
Docket Number: 99-067

This opinion was issued in the 3rd quarter of 1999.

Activities not requiring a mortgage broker license

A company which provides a lender or broker with marketing assistance does not require a mortgage broker license under Massachusetts General Laws chapter 255E where the company: will be engaged by mortgage lenders and mortgage brokers; will not have contact with potential borrowers; will provide a mailing list and property evaluations to a broker/lender for a target area in which the broker/lender wishes to make mortgage loans; will prepare a sample marketing letter that will be mailed by the broker/lender on the broker/lender's letterhead; will receive a flat fee for each address and property evaluation provided to the broker/lender; will have the right to review and approve other materials including mailings; and will not provide the property evaluations to any other party for marketing purposes. Said chapter 255E defines a mortgage broker as "any person who for compensation or gain, or in the expectation of compensation or gain, directly or indirectly, negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement or find mortgage loans on residential property for others. It is the position of the Division that the company performing the functions as described above, would not fall within the definition of a mortgage broker.

Feedback

Tell us what you think