offered by
Regulatory Bulletin

Regulatory Bulletin Regulatory Bulletin update 4

Date: 07/31/2015
Organization: Division of Banks
Referenced Sources: Regulatory Bulletins issued by the Division of Banks

Table of Contents

The Division of Banks (DOB) issues fourth round of results from Regulatory Review Initiative

One of the key objectives for the DOB is to complete a comprehensive review of all Regulatory Bulletins and regulations to determine opportunities to reduce unnecessary regulatory burden by streamlining, updating, or repealing requirements wherever possible. This initiative is a component of the DOB’s strategic planning process. The DOB believes it is helpful to issue periodic updates of the changes being made to date. Below are brief descriptions of such changes made in this fourth round of the review.

Banks, credit unions, and licensees - general

  • 1.1-101 Examination policy
    • This Bulletin was revised to reflect updates to the DOB’s examination policies and was significantly streamlined for clarity. The procedural aspects of the previous version were eliminated in order to focus this bulletin on the agency’s examination policies. It is also updated to include CRA for mortgage lender examinations. In addition, sections relative to the confidentiality of examination reports and related materials as well as the examination appeal process are moved to separate bulletins.
  • 1.1-105 Confidentiality of reports of examination and related materials
    • The This Bulletin is revised to reflect updates to the DOB’s examination policies and is significantly streamlined for clarity. The procedural aspects of the previous version are eliminated in order to focus this bulletin on the agency’s examination policies. It is also updated to include CRA for mortgage lender examinations. In addition, sections relative to the confidentiality of examination reports and related materials as well as the examination appeal process are moved to separate bulletins.

Banks only - risk management

  • 3.2-101 Reserve requirements for state-chartered banks
    • This bulletin was repealed in its entirety as the result of the passage of Chapter 482 of the Acts of 2014, An Act Modernizing the Banking Laws and Enhancing the Competitiveness of State-Chartered Banks. Massachusetts state-chartered banks are now required to be at least adequately capitalized under applicable federal rules.
  • 3.2-102 Audit policy requirements for banks
    • This bulletin was repealed in its entirety as the requirements are provided for in generally accepted auditing standards and Federal Deposit Insurance Corporation (FDIC) guidance.

Licensees only

  • 5.1-101 Enforcement policy for unlicensed entities
    • This bulletin set forth the DOB's enforcement policies relative to unlicensed business activity.
      Licensing standards are intended to ensure that individuals and businesses operate honestly, fairly,
      soundly, and in the public interest. This Bulletin outlines measures the DOB may take against persons or entities engaging in unlicensed activity including: cease directives, monetary penalties, referrals to other regulatory authorities, and consumer alerts.
  • 5.1-102 Experience requirements for mortgage lender and mortgage broker licensing; and education requirements for mortgage loan originator licensing
    • This bulletin updated and formalized experience and pre-licensing education requirements. In order to become licensed as a mortgage broker or branch manager, individuals must provide evidence of three years of full-time experience, or the equivalent in part-time experience, working for a licensed mortgage broker, mortgage lender, or financial institution exempt from licensing under G.L. c.255E. If you seek to be licensed as a mortgage lender, the experience requirement increases to 5 years of full time, or the equivalent in part time experience. The bulletin also set forth prelicensing education as well as continuing education requirements.

Conclusion

The changes reflected above are effective immediately.  The DOB will send additional updates as we make further progress on this streamlining initiative. We hope that you find this information beneficial. Should you have any questions
relative to this initiative, please contact Senior Deputy Commissioner Jay Bienvenu at (617)956-1535 or
jay.bienvenu@state.ma.us. 

Referenced Sources:
Feedback