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 42.02A - Licensing Exemptions

Current through Register 1525, July 5, 2024
The following are not required to be licensed as a mortgage
				broker or mortgage lender:
(1)
Bona fide
nonprofit affordable homeownership organizations
			 determined by the Commissioner to be exempt from licensure pursuant to M.G.L.
			 c. 255E, § 2;
(2)
			 Instrumentalities created by the United States or any state;
(3) Mortgage lenders making fewer than five
			 mortgage loans within any period of 12 consecutive months shall not be required
			 to obtain a mortgage lender license; provided, however, that in computing the
			 number of mortgage loans, there shall be counted in the loans of more than one
			 partnership, association, trust or corporation, the majority interest of which
			 are owned or controlled directly or indirectly by the same person or persons,
			 partnerships, associations, trusts or corporations and including in the loans
			 of a partnership or company not incorporated the loans of the several members
			 thereof.
(4) Persons who act as a
			 mortgage broker fewer than five times within any period of 12 consecutive
			 months shall not be required to obtain a mortgage broker license;
(5) Banks as defined in M.G.L. c. 167, §
			 1, national banking associations, federally chartered credit unions, federal
			 savings banks, or any subsidiary or affiliate of the above;
(6) Insurance companies;
(7) Banks, trust companies, savings banks and
			 credit unions organized under the laws of any other state; provided, however,
			 that such provisions shall apply to any subsidiary or affiliate, as described
			 in
			 209 CMR
			 42.07;
(8) Any nonprofit, public or independent
			 post-secondary educational institution within the Commonwealth authorized by
			 law to grant degrees by the Commonwealth, or by any agency or instrumentality
			 thereof, for mortgage loans made by any such educational institution to its
			 faculty or staff;
(9) Any
			 charitable organization originally created by a last will and testament before
			 January 1, 1950 which makes no more than 12 mortgage loans during a 12-month
			 period;
(10) A real estate broker
			 or real estate salesman as defined in M.G.L. c. 112, § 87PP who, in
			 connection with services performed in a prospective real estate transaction,
			 provides mortgage information or assistance to a buyer if such real estate
			 broker or real estate salesman is not compensated for the same in addition to
			 the compensation received from the seller for such real estate services;
			 and
(11) Persons whose activities
			 are exclusively limited to collecting and transmitting one or more of the
			 following types of information regarding a prospective mortgage loan borrower
			 to a third party:
(a) Contact
			 information;
(b) Property street
			 address;
(c) Type of
			 property;
(d) Property
			 use;
(e) Property zip
			 code;
(f) Estimated credit
			 score;
(g) Foreclosure and/or
			 bankruptcy history;
(h) Veteran or
			 military status;
(i) Estimated
			 existing home value;
(j) Existing
			 home mortgage loan payoff amount;
(k) Estimated cash out from refinance;
			 or
(l) Status as current FHA loan
			 borrower.
Notwithstanding 209 CMR 42.02A(11)(a) through (l), a person who
				collects and transmits any information regarding a prospective mortgage loan
				borrower to a third party and who receives compensation or gain, or expects to
				receive compensation or gain, that is contingent upon whether the prospective
				mortgage loan borrower in fact obtains a mortgage loan from the third party or
				any subsequent transferee of such information, is required to be licensed as a
				mortgage broker.