Alert July 30, 2013

MA Division of Banks Holds Hearings Regarding 11 Banking, Credit Union and Other Licensee Regulations

The Massachusetts Division of Banks (the “Division”) announced that it would hold two public, informational hearings to solicit comments regarding 11 of the Division’s banking, credit union and other licensee regulations.  The Division said that the hearings were being held to “streamline and modernize regulations governing the financial services industry,…”

The first hearing was held on July 30, 2013 in Boston and covered the following six of the Division’s  bank and credit union regulations:

  • 209 CMR 31.00: Establishment and Operation of Electronic Branches of Financial Institutions and for the Protection of Consumers in Electronic Fund Transfers
  • 209 CMR 32.00: Disclosure of Consumer Credit Costs and Terms
  • 209 CMR 33.00: Conversion by Co-Operative Banks and Savings Banks from Mutual to Stock Form (Sub-parts C&D Only)
  • 209 CMR 40.00: Unfair and Deceptive Practices in Consumer Transactions
  • 209 CMR 49.00: Insurance Sales by Banks and Credit Unions
  • 209 CMR 53.00: Determination and Documentation of Borrower’s Interest

The second hearing will be held in Boston on August 13, 2013 and will cover the following five regulations related to non-banks that cover mortgage lenders, brokers and originators, consumer finance companies and money service businesses, debt collectors, check cashers and loan servicers:

  • 209 CMR 20.00:  Small Loans, Sales Finance Companies and Insurance Premium Finance Companies
  • 209 CMR 42.00: The Licensing of Mortgage Lenders and Mortgage Brokers
  • 209 CMR 44.00: Licensing of Foreign Transmittal Agencies
  • 209 CMR 45.00: The licensing and Regulation of Check Cashers
  • 209 CMR 48.00: Licensee Record Keeping

All written comments on the above-listed regulations must be submitted to the Division by 5:00 p.m. on August 20, 2013.