209 CMR, § 42.04 - Licensing Standards - Mortgage Lenders

(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.

(3) An Applicant whose application has been denied under 209 CMR 42.04(2) may appeal the Commissioner's action under M.G.L. c. 255E, § 4.

(4) A person licensed as a mortgage broker under 209 CMR 42.05 through 42.07 may also be licensed as a mortgage lender under 209 CMR 42.03, 42.04, and 42.07, provided, however, that such Licensee shall be prohibited from acting as a mortgage broker in any transaction in which the Licensee is acting as a mortgage lender.

Notes

209 CMR, § 42.04

Amended by Mass Register Issue 1320, eff. 8/26/2016. Amended by Mass Register Issue 1470, eff. 5/27/2022.