| Date: | 09/01/1999 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 99-077 |
This opinion was issued in the 3rd quarter of 1999.
- This page, Summary of Selected Opinion 99-077, is offered by
- Division of Banks
Opinion
Opinion Summary of Selected Opinion 99-077
Table of Contents
Inquiry as to whether transfer of stock to an experienced individual is sufficient to satisfy the experience requirement of the Division of Banks' mortgage broker licensing requirement
An applicant seeks to transfer 5% of the stock in his company to a third party who has much greater than the minimum one year's experience in the mortgage industry in order to satisfy the applicant's experience requirement set forth in the Division's Regulatory Bulletin 5.1-102 and, ultimately, to obtain a mortgage broker license. The Bulletin requires that an applicant for a mortgage broker license provide evidence of one year of experience working for a licensed mortgage broker, mortgage lender, small loan agency, or financial institution exempt from licensing under Mass. Gen. Laws chapter 255E, or a similar institution licensed or chartered in a state other than Massachusetts. Additionally, the Bulletin provides that where an applicant shall oversee other individuals who will engage in the activities of a mortgage broker, mortgage lender, or small loan agency under the applicant's license, the individual shall demonstrate not less than two year's experience, as defined in the Bulletin. The Division would not consider the qualifications of a stockholder with only a 5% ownership position in the company's stock in assessing an applicant's qualifications under the Bulletin's requirements. The Division also considers other requirements in its review of applications.