Types of loans are eligible for review by the Mortgage Review Board
Any denied mortgage for a 1 to 4 family first mortgage or refinance in Massachusetts is eligible for review by the Mortgage Review Board. The mortgage must also be for an owner occupied property.
Appeal process
The Commissioner of Banks appoints an employee from the Division of Banks (DOB) to be Mortgage Review Board's Administrative Secretary.
- The Administrative Secretary contacts the lender requesting copies of your entire loan package be sent to the DOB.
- Your loan package is presented for review at the Mortgage Review Board's next scheduled meeting.
- You are notified by mail of appeal decision.
Members of the Mortgage Review Board
Seven members appointed by the Commissioner of Banks serve on each Mortgage Review Board.
- 3 members are community representatives
- 3 members are employees of mortgage lenders
- 1 member is a member of the public
At least 5 of the members of each Mortgage Review Board must either live or work within the region of the property location.
Regional Mortgage Review Boards
Massachusetts law states that there must be four regional Small Business Loan Review Boards.
- Boston Metropolitan Area Small Business Loan Review Board
- includes Suffolk, Essex, Middlesex, and Norfolk counties
- Southeastern Massachusetts Small Business Loan Review Board
- includes Bristol, Plymouth, Barnstable, Dukes, and Nantucket counties
- Central Massachusetts Small Business Loan Review Board
- includes Worcester County
- Western Massachusetts Small Business Loan Review Board
- includes Franklin, Hampden, Hampshire, and Berkshire counties
Meetings
Members of the Mortgage Review Board review each mortgage loan denial to determine if the basis of the denial was property location. Based on the information presented, members vote to agree with the denial or to recommend the lender reconsider the loan denial.
Neither the applicant nor the lender is present during the Mortgage Review Board meeting.
You may submit written material related to your application. These written materials will be included in the presented loan package. The decision is based on the information contained in the loam package and any other relevant information presented by you or the lender.
The Mortgage Review Board reviews most appeals within 45 days of receipt.
Unsuccessful appeals - decision to agree with lender's denial of mortgage application
If the Mortgage Review Board votes to agree with the lender's decision to deny your application this ends the matter at the Mortgage Review Board level and the appeal is considered closed. Massachusetts law allows you the ability to seek judicial review of the decision. You may also choose to bring a civil action under Massachusetts General Laws Chapter 183, section 64.
If you still believe you there was discrimination based on the property location, or on a basis that is arbitrary or unsupported by a reasonable analysis of the lending risks associated with a residential mortgage, you may bring a civil action in the district court or housing court (where applicable) of the county the lender is located in.
If you believe that your loan application was denied on a prohibited basis (i.e. on the basis of race, color, religion, national origin, ethnic origin, sex, marital status, age, income derived from public assistance, sexual orientation or handicap) you may proceed independently of the Mortgage Review Board by contacting the Massachusetts Commission Against Discrimination.