The state Division of Banks now requires nonprofit agencies that take part in a certain number of real estate transactions to be licensed as mortgage lenders and brokers.
In a letter to nonprofit and tax exempt organizations, division commissioner Steven L. Antonakes explained that previously, tax-exempt, nonproft organizations were exempt from licensing, but the division successfully pushed for an amendment to Chapter 206 of the Acts of 2007. The amendment specifically affects an Act Protecting and Preserving Home Ownership, which was signed into law in November.
The amendment deletes the mortgage lender and mortgage broker licensing exemption for any nonprofit or tax exempt agency or corporation with the purpose of assisting low to moderate income households in the purchase or rehabilitation of homes of four or fewer units.
Now, the law requires a license for any person or entity that acts as a mortgage lender or a mortgage broker with respect to residential property in Massachusetts five or more times in a year.
