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Opinion

Opinion Summary of Selected Opinion 99-161

Date: 11/01/1999
Organization: Division of Banks
Docket Number: 99-161

This opinion was issued in the 4th quarter of 1999.

Licensure requirement for mortgage wholesaler

Massachusetts General Laws chapter 255E requires that any person or entity which makes or issues commitments for five or more residential mortgage loans in a consecutive twelve month period on 1-4 family owner-occupied property in the Commonwealth obtain a mortgage lender license from the Division. However, chapter 255E does not require a license for an entity that purchases existing mortgage loans from a Massachusetts lender. It has been the consistent position of the Division that a wholesale lender that simply purchases existing mortgage loans is not required to be licensed in Massachusetts. However, in the event that a company funds the loans and closes same in its own name as reflected on the mortgage documents, it would be required to obtain a mortgage lender license.

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