Alert May 06, 2008

Massachusetts Division of Banks Proposes Guidelines Regarding Satisfactory Credit History for Licensure

The Massachusetts Division of Banks issued proposed Regulatory Bulletin 5.2-102, which provides guidelines on the proper use of an applicant’s personal financial history in determining whether the applicant meets the financial responsibility requirement for obtaining a particular license. The guidelines, which apply to licenses issued by the Division, including mortgage lender and originator licenses, would be used during the Division’s review of individual licensees as well as the control persons and branch managers of a company applicant. The proposal would require every qualifying individual to submit a credit report, current within 30 days of the application date, to the Division. The proposal would assist Division staff in determining how to treat particular elements in an individual’s credit report, like adverse credit information, when determining the financial responsibility of the individual. The Division is accepting comments on the proposed Bulletin until May 23, 2008. Click here for a copy of the proposal.