Code of Massachusetts Regulations
209 CMR - DIVISION OF BANKS AND LOAN AGENCIES
Title 209 CMR 42.00 - The Licensing Of Mortgage Lenders And Mortgage Brokers
Section 42.09 - Books and Records

Universal Citation: 209 MA Code of Regs 209.42

Current through Register 1531, September 27, 2024

(1) Each Licensee shall keep and use its books, records and accounts in a manner which will allow the Commissioner to determine whether the Licensee is complying with the provisions of M.G.L. c. 255E and applicable state and federal laws and regulations. Each Licensee shall comply with the provisions of 209 CMR 48.00: Licensee Record Keeping. The following records shall be maintained:

(a) Mortgage Lenders. Each mortgage lender required to be licensed by M.G.L. c. 255E, § 2 and 209 CMR 42.04 shall retain for a minimum of three years after final payment is made on any mortgage loan or the mortgage loan is sold, whichever occurs first, copies of: mortgage loan application(s); all required mortgage disclosures; the note; closing documents; rate lock commitment(s); results of any automated underwriting submissions; correspondence including electronic communications; papers or records relating to the loan; and such other documents as the Commissioner may require.

(b) Mortgage Brokers. Each mortgage broker required to be licensed by M.G.L. c. 255E, § 2 and 209 CMR 42.07 shall retain for a minimum of three years after a mortgage loan is made copies of: mortgage loan application(s); all required mortgage disclosures whether provided by the broker or the lender; the note; closing documents; rate lock commitment(s); results of any automated underwriting submissions; correspondence including electronic communications; accounts of fees received in connection with the loan; papers or records relating to the loan; and such other documents as the Commissioner may require.

(c) For each mortgage loan application taken by a Licensee that does not result in a closed loan (including, but not limited to, denied, withdrawn and abandoned applications), the Licensee shall retain all applicable books and records set forth in 209 CMR 42.09(1)(a) and (b) for a minimum of three years after the date the loan application is taken or the date that the Licensee makes a credit decision, whichever is later.

(2) Every Licensee shall preserve its books and records for inspection for a minimum of three years. The Commissioner may also prescribe the extent to which such books, records and accounts shall be audited. Additional audits by independent certified public accountants shall be conducted whenever the Commissioner deems it expedient. Said audits shall be submitted to the Commissioner immediately upon completion. The cost of all such audits shall be borne by the Licensee.

(3) In addition to the reports required by law, a Licensee shall make such other statements and reports to the Commissioner as he or she may require. The Commissioner may require regular quarterly reports and may furnish blank forms for all such statements or reports, required by 209 CMR 42.09.

(4) Every mortgage broker or mortgage lender shall maintain a copy of each separate advertisement (including commercial scripts of all radio broadcasts, television broadcasts and electronic media) for examination by the Commissioner for a period of three years from the date of publication. If the exact same advertisement is used multiple times and in different media, only one copy need be retained.

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