reglab/statecodes huggingface dataset:
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.01 - Purpose and Scope

Current through Register 1525, July 5, 2024
(1)
Purpose
. Unfair or deceptive acts or practices in or
			 affecting consumer transactions are unlawful under M.G.L. c. 167, § 2A. In
			 addition, predatory home loan practices are prohibited under M.G.L. c.
			 183C.
(2)
Scope
.
			 209 CMR 40.00 applies to any
			 bank, any Massachusetts or out-of-state branch, any association or corporation
			 chartered and authorized to do a banking business by a state of the United
			 States other than the Commonwealth, by the District of Columbia, the
			 Commonwealth of Puerto Rico, any territory or possession of the United States
			 or by a country other than the United States, or a national banking
			 association, federal savings and loan association, federal savings bank or
			 federal credit union, which has its main office located in the Commonwealth or
			 in any other jurisdiction named herein.
			 209 CMR 40.00 also applies to
			 any lender.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.03 - Violations of Truth in Lending

Current through Register 1525, July 5, 2024
It is an unfair act or practice for a lender subject to
				209 CMR 32.00:
Truth
				in Lending
to make a high cost mortgage in violation of
				209 CMR
				32.32:
Requirements for High Cost
				Mortgages
or 32.34:
Prohibited Acts or Practices in Connection
				with High Cost Mortgages
.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.04 - High Cost Mortgage Disclosures

Current through Register 1525, July 5, 2024
It is an unfair act or practice for a lender not subject to
				209 CMR 32.00:
Truth
				in Lending
, other than a broker, to fail to make any of the
				disclosures required under
				12 CFR
				1026.32(c).
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.05 - High Cost Mortgage Limitations

Current through Register 1525, July 5, 2024
It is an unfair act or practice for a lender not subject to
				209 CMR 32.00:
Truth
				in Lending
to extend a high cost mortgage that imposes any of the
				limitations described in
				12 CFR
				1026.32(d).
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.06 - Prohibited Acts or Practices in Connection with High Cost Mortgages

Current through Register 1525, July 5, 2024
It is a deceptive act or practice for a lender not subject to
				209 CMR 32.00:
Truth
				in Lending
to engage in any act or practice prohibited under
				12
				CFR 1026.34 in connection with the extension
				of a high cost home loan.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.07 - Unfair High Cost Mortgage Practices

Current through Register 1525, July 5, 2024
It is an unfair act or practice for a lender not subject to
				209 CMR 32.00:
Truth
				in Lending
to engage in any of the following in a high cost home
				loan:
(1)
Financing of
			 Points, Fees or Charges
. Requiring a borrower to directly or
			 indirectly finance any portion of the points and/or fees or, in any case,
			 directly or indirectly finance points and fees payable to the lender or charges
			 payable to third parties (other than appraisal fees, credit report fees,
			 mortgage recording tax, fire and miscellaneous property insurance, voluntary
			 credit, disability, unemployment and/or life insurance, title report and title
			 insurance charges), in an amount that exceeds 5% of the total loan amount or
			 $800, whichever is greater.
(2)
Packing High Cost Home Loans
. That is, the practice of
			 selling credit life, accident and health, disability or unemployment insurance
			 products or unrelated goods or services in conjunction with a high cost home
			 loan without the informed consent of the borrower under circumstances where:
(a) the lender solicits the sale of such
			 insurance, goods or services;
(b)
			 the lender receives direct or indirect compensation for the sale of such
			 insurance, goods or services; and
(c) the charges for such insurance, goods or
			 services are prepaid with the proceeds of the loan and financed as part of the
			 principal amount of the loan.
Provided, however, it shall not constitute the practice of
				"packing" if the lender, at least three business days before the loan is
				closed, makes a separate oral and a separate clear and conspicuous written
				disclosure in at least 12 point type to the borrower containing the following
				information:
1. the cost of the credit
			 insurance or other goods and services;
2. the fact that the insurance, goods, or
			 services will be prepaid and financed at the interest rate provided for in the
			 loan; and
3. that the purchase of
			 such insurance, goods or services is not required to obtain the mortgage loan;
			 provided further, that
4. insurance
			 premiums shall not be considered financed as part of the loan transaction if
			 insurance premiums are calculated, earned and paid on a monthly or other
			 regular, periodic basis.
In addition, the written disclosure shall contain a signed and
				dated acknowledgment by the obligor(s) that the oral disclosure was made and a
				signed and dated acknowledgment by the lender that the oral disclosure was
				made. In addition to the disclosures required under 209 CMR 40.07(2) a creditor
				shall comply with the requirements of
				209 CMR 52.02(1) and
				(3) as well as
				209 CMR
				52.03:
Readability of the Required
				Disclosures
for credit life insurance or credit accident and health
				insurance.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.08 - Bona Fide Errors

Current through Register 1525, July 5, 2024
It shall not constitute a violation of
				209 CMR
				40.05 through
				40.07,
				if the lender shows by a preponderance of the evidence that either:
(1) Within 30 days of the loan closing, and
			 prior to the institution of any action under M.G.L. c. 183C, the lender
			 notifies the borrower of the compliance failure and makes appropriate
			 restitution and whatever adjustments are necessary are made to the loan, at the
			 choice of the borrower, to either:
(a) make
			 the high cost home loan satisfy the requirements of M.G.L. c. 183C and
			 209 CMR 40.00; or
(b) change the terms of the loan in a manner
			 beneficial to the borrower so that the loan will no longer be considered a high
			 cost home loan; or
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.09 - Unfair Credit Practices

Current through Register 1525, July 5, 2024
It is an unfair act or practice for a lender to violate 12 CFR
				27.00.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 40.00 - Unfair and deceptive acts and practices in consumer transactions › Section 40.10 - Administrative Enforcement

Current through Register 1525, July 5, 2024
(1) The
			 Commissioner, in his or her discretion, may compromise or settle any claims
			 under any proceeding brought, or to be brought against a lender for a violation
			 of
			 209 CMR 40.00, if he or she
			 determines that such compromise or settlement is in the public
			 interest.
(2) Nothing in
			 209 CMR 40.00 shall limit the
			 ability of the Attorney General to enforce the provisions of
			 209 CMR 40.00, M.G.L. c. 167,
			 §§ 2A through 2G, M.G.L. c. 93A, or M.G.L. c. 183C.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.01 - Purpose and Scope

Current through Register 1525, July 5, 2024
The purpose of
				209 CMR 41.00 is to establish
				procedures and requirements for the licensing and supervision of Mortgage Loan
				Originators under the provisions of M.G.L. c. 255F.
Nothing contained in
				209 CMR 41.00 shall limit the
				ability of the Commissioner to consider other information in determining
				whether or not to approve an application, or to require information in addition
				to that required by the application form completed by the
				applicant.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.03 - Licensing Exemptions

Current through Register 1525, July 5, 2024
The following are not required to obtain a Mortgage Loan
				Originator license:
(1) Registered
			 Mortgage Loan Originators.
(2) Any
			 person offering or negotiating a residential mortgage loan with or on behalf of
			 an immediate family member.
(3) Any
			 person offering or negotiating a residential mortgage loan secured by a
			 dwelling that served as the individual's primary residence.
(4) Any person admitted to practice law in
			 the Commonwealth negotiating the terms of a residential mortgage loan on behalf
			 of a client as an ancillary matter to the person's representation of the
			 client, unless the person is compensated by a lender, a mortgage broker, or
			 other Mortgage Loan Originator or by any agent of such lender, mortgage broker,
			 or other Mortgage Loan Originator.
(5) Any person engaged solely as a loan
			 processor or underwriter, unless:
1. said
			 person is acting as an independent contractor; or
2. said person is employed by an independent
			 contractor that provides loan processing and underwriting services for
			 entities.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.04 - Application Procedure

Current through Register 1525, July 5, 2024
(1)
Application
. Each Applicant for a license as a
			 Mortgage Loan Originator shall submit an application on a form prescribed by
			 the Commissioner through the NMLS, containing such information as the
			 Commissioner may require.
(2)
License Requirements
. An Applicant shall be required
			 to submit detailed information supporting the following requirements:
(a)
Financial
			 Responsibility
. An Applicant shall provide the Commissioner with
			 evidence of his or her financial responsibility. Such information shall include
			 an independent credit report obtained from a consumer reporting agency
			 described in § 603(p) of the Fair Credit Reporting Act, which shall be
			 evaluated pursuant to the policies and standards determined by the
			 Commissioner. A person shall have failed to demonstrate that he or she is
			 financially responsible when he or she has shown a disregard in the management
			 of his or her own financial condition; and provided further, that a
			 determination that an individual has not shown financial responsibility may
			 include, but shall not be limited to:
1.
			 current outstanding judgments, except judgments solely as a result of medical
			 expenses;
2. current outstanding
			 tax liens or other government liens and filings;
3. foreclosure within the past three years;
			 or
4. a pattern of seriously
			 delinquent accounts within the past three years.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.05 - Licensing Standards

Current through Register 1525, July 5, 2024
(1) A license to engage
			 in the activity of a Mortgage Loan Originator will be issued to an Applicant if
			 the Commissioner, upon review of the application and all other relevant
			 information, determines that all of the requirements of M.G.L. c. 255F and
			 209 CMR
			 41.04 have been met.
(2) A mortgage loan originator may be
			 employed by no more than one entity.
(3)
(a) The
			 Commissioner shall deny an application for a Mortgage Loan Originator license
			 if the Commissioner upon review of the application and any other relevant
			 information, determines that the Applicant has:
1. had a mortgage loan originator license
			 revoked in any governmental jurisdiction; provided, however, that a subsequent
			 formal vacation of such revocation shall not be deemed a revocation;
2. been convicted of, or pled guilty,
			 admitted to sufficient facts or
nolo contendere
to, a felony
			 in a domestic, foreign, or military court:
a.
			 during the seven-year period preceding the date of the application for
			 licensing;
b. at any time preceding
			 such date of application, if such felony involved an act of fraud, dishonesty,
			 or a breach of trust, or money laundering; or
c. has other convictions or admissions to
			 sufficient facts involving fraud, dishonesty, or a breach of trust, or that the
			 applicant has had any adverse civil judgments involving fraudulent
			 dealings;
3. failed to
			 demonstrate financial responsibility, character, reputation, integrity and
			 general fitness such as to command the confidence of the community and to
			 warrant a determination that such Applicant will operate honestly, fairly,
			 soundly and efficiently in the public interest;
4. failed to complete the pre-licensing
			 education requirement described in
			 209 CMR
			 41.04(2)(e);
5. failed to pass a written test that meets
			 the test requirement described in
			 209 CMR
			 41.04(2)(f); or
6. failed to satisfy the requirements of
			 M.G.L. c. 255F or
			 209 CMR
			 41.04.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.06 - Termination and Reassignment

Current through Register 1525, July 5, 2024
(1) Upon the
			 termination of the relationship between an Employing Entity and the Mortgage
			 Loan Originator, the Employing Entity shall notify the Division within five
			 business days after the termination. The Employing Entity shall set forth the
			 reason(s) for termination and shall submit such statement through the NMLS;
			 provided, however, that if the Employing Entity is unable to submit such
			 statement through the NMLS, it may submit the statement in writing directly to
			 the Division.
(2) For a period of
			 one year after the termination of employment or association, the Mortgage Loan
			 Originator may request re-assignment of the mortgage loan originator license to
			 another Entity by submitting an application for a change of sponsorship through
			 the NMLS to the Division and paying the required fee, as determined by the
			 Commissioner.
(3) When the
			 relationship between the Employing Entity and the Mortgage Loan Originator is
			 terminated, the license shall become inactive and the Mortgage Loan Originator
			 shall not be authorized to engage in any residential mortgage loan origination
			 activity unless and until the Mortgage Loan Originator's license has been
			 re-assigned to another Entity and all Division procedures have been followed to
			 re-assign and reactivate such license. A Licensee shall be required to continue
			 to submit a completed renewal application, with the applicable renewal fee, and
			 to complete the required continuing education courses while the license is in
			 an inactive status.
(4) A Mortgage
			 Loan Originator license that has been in an inactive status for over one year
			 shall be cancelled.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.07 - License Renewal and Expiration

Current through Register 1525, July 5, 2024
(1) The license of
			 a Mortgage Loan Originator shall not be transferable or assignable and shall be
			 valid for a period of not more than one year, with an expiration date of
			 December 31st of each year.
(2) The Division may renew a Mortgage Loan
			 Originator license if the Licensee fulfills the following requirements:
(a) Timely submission of a complete
			 application for renewal, in the form and manner established under the
			 NMLS.
(b) Continuing compliance
			 with M.G.L. c. 255F and
			 209 CMR 41.00.
(c) Satisfaction of annual continuing
			 education requirements, as described in
			 209 CMR
			 41.08.
(d) Payment of all required fees for the
			 renewal of the license, including but not limited to, investigation fees,
			 license fees, and any other outstanding fees, late penalties, or administrative
			 penalties owed to the Division or refunds ordered by the Division to be
			 returned to consumers.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.08 - Continuing Education

Current through Register 1525, July 5, 2024
(1) A Licensee shall,
			 annually, complete a minimum of eight hours of continuing education approved by
			 the NMLS, which shall include, without limitation:
(a) three hours of federal law and
			 regulation;
(b) two hours of
			 ethics, which shall include instruction on fraud, consumer protection, and fair
			 lending issues;
(c) two hours of
			 training related to lending standards for the nontraditional mortgage product
			 marketplace; and
(d) one hour of
			 Massachusetts state law and regulation, which shall include instruction on
			 Massachusetts consumer protection laws and other related statutes.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.09 - Notice of Significant Events

Current through Register 1525, July 5, 2024
A Licensee shall notify the Commissioner immediately, in
				writing, and amend the Licensee's information and disclosures in the NMLS,
				within two business days of the occurrence of any of the following significant
				developments:
(a) Being charged with
			 or convicted of any criminal felony offense.
(b) Being charged with or convicted of any
			 criminal misdemeanor offense involving financial services or a financial
			 services related business; or any charge involving fraud, false statements or
			 omissions, theft or wrongful taking of property, bribery, perjury, forgery,
			 counterfeiting, or extortion.
(c)
			 Receiving notification of the institution of license denial, cease and desist,
			 suspension or revocation procedures, or other formal or informal regulatory
			 action, in any state against the Licensee.
(d) Receiving notification of the initiation
			 of any action against the Licensee by the Attorney General of the Commonwealth
			 or of any other state, pursuant to M.G.L. c. 93A, or any other comparable
			 consumer protection statute.
(e)
			 The settlement or resolution of any civil action or proceeding against the
			 Licensee involving fraud, misrepresentation, and/or wrongful taking of
			 property.
(f) Filing a personal
			 bankruptcy petition or being the subject of an involuntary bankruptcy
			 petition.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.11 - Challenge Process

Current through Register 1525, July 5, 2024
(1) A Mortgage Loan
			 Originator may challenge information entered into the NMLS by the Division.
			 Such challenge must be in writing and must set forth the specific information
			 being challenged and include supporting evidence. The grounds for the challenge
			 shall be limited to the factual accuracy of the information pertaining to the
			 Mortgage Loan Originator's own license record that has been entered into the
			 NMLS by the Division. A Mortgage Loan Originator shall not submit a challenge
			 in order to protest disciplinary action taken against the Mortgage Loan
			 Originator by the Division or to appeal the underlying reasons for the
			 disciplinary action.
(2) The
			 Commissioner shall review all information submitted by the Mortgage Loan
			 Originator and shall determine the merits of the challenge. If the Commissioner
			 determines that the information submitted to the NMLS is factually incorrect,
			 the Commissioner shall take prompt steps to correct the information
			 submitted.
(3) A Mortgage Loan
			 Originator that is aggrieved by the Commissioner's decision in response to the
			 challenge submitted may appeal said decision within 30 days of the
			 Commissioner's decision, in accordance with M.G.L. c. 30A.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 41.00 - The Licensing Of Mortgage Loan Originators › Section 41.12 - License Disclosure

Current through Register 1525, July 5, 2024
(1) A Licensee shall
			 disclose his or her Mortgage Loan Originator license number to all clients
			 and/or residential mortgage loan applicants in writing at the time a fee is
			 paid or a mortgage loan application is accepted.
(2) A Licensee's Mortgage Loan Originator
			 license number shall be clearly shown on all residential mortgage loan
			 application forms, solicitations or advertisements including, without
			 limitation, business cards and websites.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.01 - Purpose and Scope

Current through Register 1525, July 5, 2024
The purpose of
				209 CMR 42.00 is to establish
				procedures and requirements for the licensing and supervision of mortgage
				lenders and brokers under the provisions of M.G.L. c. 255E. Nothing contained
				in
				209 CMR 42.00 shall limit the
				ability of the Commissioner to consider other information in determining
				whether or not to approve an application, or to require information in addition
				to that required by the application form provided to the
				applicant.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.03 - Application Procedure - Mortgage Lenders

Current through Register 1525, July 5, 2024
(1)
Application
.
			 Each Applicant for a license as a mortgage lender shall submit an application
			 for licensure through the NMLS, containing such information as the Commissioner
			 may require.
(2)
License Requirements
. An Applicant shall be required
			 to submit detailed information supporting the following general requirements:
(a)
Financial
			 Responsibility
. An Applicant shall demonstrate financial
			 responsibility and shall maintain:
1. a net
			 worth of not less than $200,000;
2.
			 a bond in such form and with such sureties as may be approved by the
			 Commissioner in a sum to be based on the amount of the Applicant's aggregate
			 mortgage loans, as determined by the Commissioner, but in no event shall the
			 sum of the bond be less than $100,000, up to a maximum of $500,000; provided
			 that the sum of such bond may be increased by the Commissioner at any time to
			 such amount, up to the $500,000 maximum, as shall be shown to be necessary. The
			 surety bond must contain a clause that the insurance company will notify the
			 Commissioner at least 30 days prior to canceling the surety bond for any
			 reason. The Commissioner shall automatically suspend the license on the date
			 the cancellation takes effect, unless the surety bond has been replaced or
			 renewed; and
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.04 - Licensing Standards - Mortgage Lenders

Current through Register 1525, July 5, 2024
(1) A license to engage in the business of a
			 mortgage lender will be issued to an Applicant if the Commissioner, upon review
			 of the application and all other relevant information, determines that all of
			 the requirements of M.G.L. c. 255E, §§ 3 and 4 and
			 209 CMR
			 42.03 have been met.
(2)
(a) The
			 Commissioner may deny an application to engage in the business of a mortgage
			 lender, if the Commissioner upon review of the application and any other
			 relevant information, determines that the Applicant has not satisfied the
			 requirements of M.G.L. c. 255E, §§ 3 and 4 or
			 209 CMR
			 42.03.
(b) The Commissioner may also deny such an
			 application if the Applicant has:
1. violated
			 any provision of M.G.L. c. 255E or
			 209 CMR 42.00;
2. violated or engaged in a pattern of
			 violations of any state or federal law applicable to the conduct of the
			 business of a mortgage lender including, but not limited to, M.G.L. chs. 93A,
			 140, 140D, 183, or 184 and any rule, regulation or administrative order or
			 directive promulgated thereunder;
3. conducted, or will conduct, its business
			 in an unsafe and unsound manner; or
4. engaged in conduct which has resulted in
			 the suspension or revocation of its license to engage in the business of a
			 mortgage lender by the licensing authority of any other state.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.05 - Application Procedure - Mortgage Brokers

Current through Register 1525, July 5, 2024
(1)
Application
.
			 Each Applicant for a license as a mortgage broker shall submit an application
			 for licensure through the NMLS, containing such information as the Commissioner
			 may require.
(2)
License Requirements
. An Applicant shall be required
			 to submit detailed information supporting the following general requirements:
(a)
Financial
			 Responsibility
. An Applicant shall demonstrate financial
			 responsibility and shall maintain:
1. a net
			 worth of not less than $25,000;
2.
			 a bond of $75,000 in such form and with such sureties as may be approved by the
			 Commissioner. The surety bond must contain a clause that the insurance company
			 will notify the Commissioner at least 30 days prior to canceling the surety
			 bond for any reason. The Commissioner shall automatically suspend the license
			 on the date the cancellation takes effect, unless the surety bond has been
			 replaced or renewed; and
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.06 - Licensing Standards - Mortgage Brokers

Current through Register 1525, July 5, 2024
(1) A license to engage in the business of
			 mortgage broker will be issued to an Applicant if the Commissioner, upon review
			 of the application and all other relevant information, determines that all of
			 the requirements of M.G.L. c. 255E, §§ 3 and 4 and
			 209 CMR
			 42.05 have been met.
(2)
(a) The
			 Commissioner may deny an application to engage in the business of a mortgage
			 broker, if the Commissioner upon review of the application and other relevant
			 information, determines that the Applicant has not satisfied the requirements
			 of M.G.L. c. 255E or
			 209 CMR
			 42.05.
(b) The Commissioner may also deny such an
			 application if the Applicant has:
1. violated
			 any provision of M.G.L. c. 255E or
			 209 CMR 42.00;
2. violated or engaged in a pattern of
			 violations of any state or federal law applicable to the conduct of the
			 business of a mortgage broker including, but not limited to, M.G.L. chs. 93A,
			 112, § 87RR, 140, 140D, 183, or 184 and any rule, regulation or
			 administrative order or directive promulgated thereunder;
3. conducted, or will conduct, its business
			 in an unsafe and unsound manner; or
4. engaged in conduct which has resulted in
			 the suspension or revocation of its license to engage in the business of a
			 mortgage broker by the licensing authority of this or any other
			 state.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.07 - Licensing of Certain Subsidiaries and Affiliates

Current through Register 1525, July 5, 2024
A non-bank subsidiary or non-bank affiliate of a bank, trust
				company, savings bank, savings and loan association, credit union or insurance
				company organized under the laws of any other state or of a bank holding
				company established in accordance with state or federal law shall be subject to
				the mortgage broker and mortgage lender licensing and other provisions of
				M.G.L. c. 255E and
				209 CMR
				42.00.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.08 - Minimum Financial Responsibility and Net Worth

Current through Register 1525, July 5, 2024
(1) The financial responsibility and net
			 worth requirements set out in
			 209 CMR
			 42.03(2)(a),
			 42.05(2)(a)
			  and
			 42.11A
			 are minimum acceptable standards for a Licensee whose overall financial
			 condition is fundamentally sound, which is well managed and which has no
			 material or significant financial weaknesses. Thus, the Commissioner is not
			 precluded from requiring a Licensee to maintain a higher net worth based on the
			 Licensee's particular risk profile. Where the Commissioner reasonably
			 determines, as a result of an examination under M.G.L. c. 255E, § 8, the
			 financial history or condition, managerial resources and/or active earnings
			 prospects of a Licensee are not adequate, or where a Licensee has sizeable off-
			 balance sheet or funding risks, excessive interest rate risk exposure, or a
			 significant volume of classified or criticized assets, the Commissioner may
			 prescribe a minimum net worth for a Licensee that is greater than the minimums
			 specified in
			 209 CMR
			 42.03(2)(a),
			 42.05(2)(a)
			  and
			 42.11A.
(2) The amount and time frames for attaining
			 a higher net worth prescribed under 209 CMR 42.08 shall be set forth in either:
(a) a corporate resolution executed by the
			 Licensee and approved by the Commissioner;
(b) a written Memorandum of Understanding or
			 other agreement between the licensee and the Commissioner; or
(c) as a provision in a temporary or
			 permanent Cease and Desist Order issued pursuant to M.G.L. c. 255E, §
			 7.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.09 - Books and Records

Current through Register 1525, July 5, 2024
(1) Each Licensee
			 shall keep and use its books, records and accounts in a manner which will allow
			 the Commissioner to determine whether the Licensee is complying with the
			 provisions of M.G.L. c. 255E and applicable state and federal laws and
			 regulations. Each Licensee shall comply with the provisions of
			 209 CMR
			 48.00:
Licensee Record Keeping
. The
			 following records shall be maintained:
(a)
Mortgage Lenders
. Each mortgage lender required to be
			 licensed by M.G.L. c. 255E, § 2 and
			 209 CMR
			 42.04 shall retain for a minimum of three
			 years after final payment is made on any mortgage loan or the mortgage loan is
			 sold, whichever occurs first, copies of: mortgage loan application(s); all
			 required mortgage disclosures; the note; closing documents; rate lock
			 commitment(s); results of any automated underwriting submissions;
			 correspondence including electronic communications; papers or records relating
			 to the loan; and such other documents as the Commissioner may
			 require.
(b)
Mortgage
			 Brokers
. Each mortgage broker required to be licensed by M.G.L. c.
			 255E, § 2 and
			 209 CMR
			 42.07 shall retain for a minimum of three
			 years after a mortgage loan is made copies of: mortgage loan application(s);
			 all required mortgage disclosures whether provided by the broker or the lender;
			 the note; closing documents; rate lock commitment(s); results of any automated
			 underwriting submissions; correspondence including electronic communications;
			 accounts of fees received in connection with the loan; papers or records
			 relating to the loan; and such other documents as the Commissioner may
			 require.
(c) For each mortgage loan
			 application taken by a Licensee that does not result in a closed loan
			 (including, but not limited to, denied, withdrawn and abandoned applications),
			 the Licensee shall retain all applicable books and records set forth in 209 CMR
			 42.09(1)(a) and (b) for a minimum of three years after the date the loan
			 application is taken or the date that the Licensee makes a credit decision,
			 whichever is later.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.10 - Annual Reports

Current through Register 1525, July 5, 2024
On or before a date determined by the Commissioner, each
				Licensee shall file an annual report with the Commissioner in such form as the
				Commissioner shall prescribe for the preceding calendar year. The annual report
				shall be in writing, subscribed by the Licensee under the pains and penalty of
				perjury.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.11 - Client Funds Account

Current through Register 1525, July 5, 2024
(1) All fees paid by
			 clients or residential mortgage loan applicants, to a licensed mortgage lender
			 or mortgage broker, shall be deposited in one or more client funds accounts
			 maintained at a federally insured bank. Said fees shall include, but not be
			 limited to, application fees, rate-lock commitment fees, prepaid commissions or
			 broker fees, prepaid attorney charges, and all other prepaid fees related to
			 the mortgage loan transaction. Said account(s) shall contain only those funds
			 collected from such clients or residential mortgage loan applicants.
(2) Each client funds account shall be titled
			 "trust account", "client funds account", "clients' trust account", "escrow
			 account", or other similar name that will evidence the fiduciary nature of the
			 account.
(3) For each client funds
			 account opened, the Licensee must provide a written notice to the bank
			 explaining the fiduciary nature of the account and that the account is for the
			 purpose of holding client funds. The Licensee shall obtain written
			 acknowledgment of receipt of the notice from a duly authorized representative
			 of the bank.
(4) Such Licensee may
			 offset funds in the client funds account(s) against commissions to which it is
			 entitled for services actually performed or for reimbursement for authorized
			 fees paid directly to third parties. A Licensee is deemed to have performed
			 when:
(a) a residential mortgage loan has
			 closed;
(b) the client or mortgage
			 loan applicant has withdrawn the loan application in writing; or
(c) a loan has been denied.
All offsets shall be accounted for through written
				documentation evidencing the amount of offset.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.11A - Mortgage Loan Rate Lock Commitments

Current through Register 1525, July 5, 2024
(1)
(a) Prior to entering into or issuing
			 interest rate lock commitments to any mortgage loan applicant or any other
			 mortgage lender, except as described in 209 CMR 42.11A(2)(a), a mortgage lender
			 shall have and maintain a net worth, as defined by
			 209 CMR 42.02 of not
			 less than $500,000 and shall be approved to sell mortgages directly to the
			 Federal National Mortgage Association, the Federal Home Loan Mortgage
			 Corporation, the Government National Mortgage Association or to an
			 institutional investor as approved by the Commissioner.
(b) A mortgage lender under 209 CMR
			 42.11A(1)(a), shall maintain a total net worth of at least 2% of the total
			 dollar amount of pending loans for which it has issued rate lock commitments to
			 a mortgage loan applicant or another mortgage lender at any one time, and which
			 are not covered by a binding commitment for the sale of the mortgage loans in
			 the secondary mortgage market. The portion of pending rate locked loans that
			 are deemed to be covered are those loans which can be sold under an existing
			 commitment from a mortgage lender or investor who is authorized to issue
			 interest rate lock commitments under 209 CMR 42.11A(1)(a).
(c) For the purpose of 209 CMR 42.11A(1), the
			 term "net worth" shall be defined as in
			 209 CMR 42.02 and
			 shall exclude real property and fixed assets and shall require the value of
			 mortgage loans held for sale and mortgage loan commitments entered into by the
			 licensee to be adjusted to their fair market value according to generally
			 accepted accounting principles for mark-to-market valuations.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.12 - Notice of Significant Events and Proposed Change in Ownership or Personnel

Current through Register 1525, July 5, 2024
(1) A Licensee shall
			 notify the Commissioner immediately, in writing within one business day, of the
			 occurrence of any of the following significant developments:
(a) Filing for bankruptcy or reorganization
			 of the Licensee.
(b) The Licensee,
			 its owner(s), officer(s), director(s), or employee(s) being charged with a
			 criminal offense that is in any way related to the mortgage lender or brokerage
			 activities of a Licensee including, but not limited to, the handling and/or
			 reporting of moneys received and/or instruments sold.
(c) Receiving notification of the institution
			 of license denial, cease and desist, suspension or revocation procedures, or
			 other formal or informal regulatory action, in any state against the Licensee,
			 and the reasons thereof.
(d)
			 Receiving notification of the initiation of any action by the Attorney General
			 of the Commonwealth or of any other state, pursuant to M.G.L. c. 93A, or any
			 other comparable consumer protection statute, and the reasons
			 thereof.
(e) Expiration,
			 termination or default, technical or otherwise, of any existing line of credit
			 or warehouse credit agreement.
(f)
			 Suspension or termination of the Licensee's status as an approved seller or
			 seller/servicer by a Government Sponsored Enterprise, or an investor approved
			 under
			 209 CMR
			 42.11A(1)(a); or any
			 administrative sanctions imposed against a FHA, VA, or USDA approved lender by
			 the Mortgage Review Board; or any administrative sanctions imposed by the
			 Consumer Financial Protection Bureau; or any other federal financial
			 regulator.
(g) Exercise of recourse
			 rights by investors or subsequent assignees of mortgage loans if such loans, in
			 the aggregate, exceed the licensee's net worth exclusive of real property and
			 fixed assets.
(h) Initiation of
			 Trustee Process or any other form of attachment on any of the Licensee's
			 assets.
(i) Issuance of an interest
			 rate lock commitment in violation of
			 209 CMR
			 42.11A.
(j) Existence of negative balances, exceeding
			 $100, in any operating account at any time or the return of checks, exceeding
			 $100, for insufficient funds.
(k)
			 Any change to net worth resulting from market valuation or future loss
			 liability or any other change which causes the net worth of the licensee to
			 fall below the requirements of
			 209 CMR
			 42.03,
			 42.05,
			 42.08,
			 and
			 42.11A(1)(a).
(l) Cancellation by the Licensee of the
			 surety bond required pursuant to
			 209 CMR
			 42.03(2)(a)2. or
			 42.05(2)(a)2. and shall provide a new surety bond to the Commissioner. If the
			 Licensee does not replace the surety bond, the Commissioner shall automatically
			 suspend the license until the Licensee has provided the required
			 bond.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.12A - Prohibited Acts and Practices

Current through Register 1525, July 5, 2024
(1) It is a
			 prohibited act or practice for a Licensee to make or broker a high cost
			 mortgage loan subject to
			 209 CMR
			 32.32:
Requirements for High Cost
			 Mortgages
, or a higher-priced mortgage loan subject to
			 209 CMR
			 32.35:
Requirements for Higher Priced
			 Mortgage Loans
which have rates, fees, terms, or features that violate
			 the following provisions, as applicable:
(a)
			 the disclosure requirements of
			 209 CMR
			 32.32(3):
Disclosures
;
(b)
			 the loan limitations set forth in
			 209 CMR
			 32.32(4):
Limitations
or 32.35:
Requirements for Higher Priced
			 Mortgage Loans
;
(c) the
			 prohibited acts and practices provisions of
			 209
			 CMR 32.34(1); or
(d) the unfair high cost loan practices
			 provisions of
			 209
			 CMR
			 32.34(2).
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.13 - Office Locations

Current through Register 1525, July 5, 2024
(1)
Branch Offices
. A Licensee who intends to carry on its
			 business at any location in addition to the address on its original license
			 shall file for a branch license through the NMLS, at least 30 days prior to the
			 opening of the branch location. Such notice shall contain the address of any
			 such place and such other information as the Commissioner may
			 require.
(2)
Relocations and Closings
. Licensees shall provide 30
			 days prior written notice through the NMLS of any change or closing of a
			 Massachusetts location and shall provide such other information as the
			 Commissioner may require.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers › Section 42.14 - License Disclosure

Current through Register 1525, July 5, 2024
A Licensee shall disclose the type and number of its license(s)
				to all clients and/or residential mortgage loan applicants in writing at the
				time a fee is paid or a mortgage loan application is accepted. A Licensee shall
				also disclose the type and number of its license(s) in all
				advertisements.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.01 - Purpose and Scope

Current through Register 1525, July 5, 2024
The purpose of
				209 CMR 43.00 is to establish
				examination and audit requirements for credit unions and their auditing
				committees. The frequency, scope and minimum requirements for credit union
				audits and share verifications are specified within
				209 CMR 43.00. In addition,
				209 CMR 43.00 includes
				provisions relative to compliance with federal regulations relative to security
				and protection of credit unions
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.02 - Definitions

Current through Register 1525, July 5, 2024
As used in
				209 CMR 43.00, the following
				words shall have the following meanings:
Audit
: an examination of the books,
				securities, cash, assets, liabilities, equity, income and expenditures of a
				credit union, including trial balance of the deposit and share account, in
				which a certified public accountant conducts an audit using generally accepted
				auditing standards (GAAS) and issues an opinion on whether the financial
				statements conform with generally accepted accounting principles (GAAP),
				subject to such other conditions and requirements that the Commissioner may
				impose from time to time under M.G.L. c. 171, § 16.
Auditing Committee
: the committee
				elected by the credit union's Board of Directors under M.G.L. c. 171, § 15
				and which operates under M.G.L. c. 171, § 16.
Auditing Committee Review
: a review
				performed by the Auditing Committee or a qualified individual that conforms, at
				a minimum, to the standards set forth in the National Credit Union
				Administration's (NCUA) Supervisory Committee Guide for Federal Credit
				Unions.
Commissioner
: the Commissioner of
				Banks.
Credit Union
: a credit union as
				defined by M.G.L. c. 171, § 1 and subject to supervision and examination
				by the Commissioner.
Members of Their Immediate Families
: a
				spouse, or a child, parent, grandchild, grandparent, brother or sister, or the
				spouse of any such individual.
NCUA
: The National Credit Union
				Administration, or any successor to such entity.
Qualified Individual
: any accounting
				or auditing professional, excluding a credit union employee, who performs the
				Auditing Committee Review or verification of members' accounts. Examples of
				such an individual could include a certified public accountant, a credit union
				auditor consultant, or an individual experienced in financial statement
				audits.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.03 - Auditing Committee Responsibilities

Current through Register 1525, July 5, 2024
As a member of the Auditing Committee, you are responsible for
				determining that the financial condition of the credit union is accurately and
				fairly presented in the credit union's statements and that management practices
				and procedures are sufficient to safeguard members' shares. This includes
				ensuring the timely and adequate completion of the annual audit under GAAS
				auditing procedures or Auditing Committee Review, as well as the verification
				of members' accounts.
To meet the requirements of
				209 CMR 43.00, the Auditing
				Committee shall determine that the credit union's accounting records and
				reports are prepared promptly and accurately reflect operations and results,
				that internal controls are established and effectively maintained to safeguard
				the credit union's assets, and that the plans, policies, and control procedures
				established by the board of directors are being properly administered. The
				Auditing Committee is also responsible for reviewing policies and control
				procedures to safeguard against error, carelessness, fraud, and conflicts of
				interest.
The activities generally used to carry out these
				responsibilities include performing or obtaining the annual audit and the
				verification of members' accounts; however, as a member of the Auditing
				Committee you are expected to oversee such other tests and reviews as may be
				necessary in the Auditing Committee's judgment to meet its responsibilities,
				such as ensuring high-risk areas of the credit union are audited or reviewed
				regularly.