Massachusetts enacted legislation in compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, which calls for states to establish a scheme for the licensing and supervision of individuals originating mortgage loans. Among other things, the new law requires mortgage loan originators to register with the Nationwide Mortgage Licensing System, complete pre-licensing and continuing education, submit to fingerprinting for the purpose of a criminal history background check, pass a written test and meet surety bond coverage requirements. Mortgage loan originators employed by a depository institution or its operating subsidiary who have registered with the Nationwide Mortgage Licensing System are exempt from the new law. The law became effective July 31, 2009, with the mortgage loan originator licensing provisions taking effect on July 31, 2010 or July 31, 2011, depending on certain factors. Click here for the new law.
Alert August 11, 2009