Alert April 08, 2008

Massachusetts Updates Bulletin on Subprime Adjustable Rate Mortgage Loans

The Massachusetts Division of Banks issued a letter informing the industry that it has modified and reissued Regulatory Bulletin 1.3-104 which took effect on January 30, 2008. The bulletin sets forth the Division’s revised guidance on standards to be used in determining whether a variable or adjustable rate mortgage loan to a first-time borrower qualifies as “subprime” for the purposes of Massachusetts law, and facilitates the implementation of the related consumer counseling and affirmative opt-in requirements. Click here for a copy of the letter which contains a link to the modified bulletin.