Does the state require a physical location within the state?
A physical presence in the state is not required to maintain a license.

Is there individual loan officer licensing?
No, Massachusetts does not register or license loan originators individually.

What are lenders, brokers and loan officers called?
The terms mortgage lender, mortgage broker and loan originator are commonly used in Massachusetts.

What is the cost of a license? Surety bond? Are there net worth requirements?
The Massachusetts Division of Banks will be among the first state agencies in the country to join the Nationwide Mortgage Licensing System ("NMLS") on January 2, 2008. The NMLS will allow companies to apply for licensure and manage its license(s) with the Division, as well as other participating state regulatory agencies, in an electronic form through a secure website. Please note that all mortgage lender and mortgage broker license applicants filing on or after January 2, 2008 must do so through the NMLS, and paper applications will no longer be accepted.

An "investigation fee" of $115 is required to apply for a license. Annual license fees are $1,100.00 for mortgage lenders and $600.00 for mortgage brokers. The annual license fee for each additional branch license is $50.00 for each license type. Mortgage lenders must maintain a net worth of not less than $200,000 as evidenced by annual audited financial statements. Mortgage brokers must maintain a net worth of not less than $25,000 as evidenced by annual audited or reviewed financial statements. Mortgage lenders must maintain a bond 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. Mortgage brokers must maintain a bond of $75,000.

Is there a pre-licensing education requirement? Is there a test?
An applicant must satisfy a business experience requirement whereby "an applicant shall demonstrate to the Commissioner’s satisfaction that the Applicant, and its applicable officers and employees, possess the necessary educational and business experience to engage in the business of a mortgage lender [or mortgage broker]." The Division has issued a bulletin explaining the experience requirement in greater detail.

Is there a CE requirement?
No.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license?).
Entities may obtain dual licenses as a mortgage lender and mortgage broker. However, a licensee may not act as a mortgage lender and a mortgage broker in the same transaction.

Are there any state specific high cost loan provisions?
Massachusetts enacted high-cost mortgage loan regulations that became effective January 22, 2001. The regulations establish criteria that define "high-cost" mortgages. Numerous restrictions and notice requirements are placed on loans falling into the high cost category. The high-cost mortgage loan regulations do not apply to reverse-mortgage transactions or to unsecured open-end credit plans. These regulations apply to a consumer credit transaction that is secured by the consumer's principal dwelling and that meets or exceeds one of the following thresholds:

APR test

For first-lien loans, the APR at consummation is greater than 8 percent above yield on Treasury securities with comparable periods of maturity measured as of the fifteenth day of the month immediately preceding the month in which the lender receives the loan application. For junior-lien loans, the APR at consummation is greater than 9 percent above yield on Treasury securities with comparable periods of maturity measured as of the fifteenth day of the month immediately preceding the month in which the lender receives the loan application. For loans carrying a reduced introductory or initial interest rate, measure the APR in effect at the end of the initial or introductory period.

Points and fees test

The total points and fees payable by the consumer at or before loan closing exceeds the greater of 5 percent of the total loan amount, or $480 (the $480 figure shall be adjusted annually on January 1 by the annual percentage change in the consumer price index that was reported on the preceding June 1), provided, however that bona fide loan discount points payable by the borrower in connection with the loan transaction may be excluded from the calculation of the total points and fees payable by the borrower for purposes of the points and fees test.