Massachusetts adopted rules amending the Mortgage Lender and Broker Laws (MLBL). Under the adopted rules: the exemption status for subsidiaries and affiliates of depository institutions is clarified; the requirement that lenders and brokers display their license in each place of business is repealed; requirements with respect to the annual filing of financial statements are amended; temporary license provisions are repealed; “client funds account” (escrow account) requirements are amended; the requirement to deliver a Loan Originator and Compensation Agreement is repealed; recordkeeping requirements are amended; and events requiring Commissioner notification are expanded. The adopted rules also amend the Mortgage Loan Originator Laws (MLOL). The amendments to the MLOL: require licensing for loan processors and underwriters employed by an independent contractor; clarify requirements with respect to a mortgage loan originator’s termination of employment; and require loan originators to maintain license information in the mortgage loan originator’s NMLS record. The adopted rules went into effect August 26, 2016.
