Alert July 29, 2008

Massachusetts Regulator Issues Opinion on Exemption for Nonprofits from Mortgage Licensing Statute

The Massachusetts Division of Banks issued an opinion concerning the amendment to Massachusetts’ mortgage lender law that eliminated the licensing exemption for all nonprofit entities, effective July 1, 2008. In its opinion, the Division takes the position that licensure does not apply to a nonprofit agency or corporation incorporated under Massachusetts law, which is tax exempt under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code, and whose residential mortgage lending or brokering activities are solely limited to government programs and the use of public funds. Click here for the opinion.