Mortgages and Assignments 

In our February, 2008 issue, we reported that DocMagic, Inc.'s Compliance Department had updated Fannie Mae's/Freddie Mac's Massachusetts mortgage as well as its other mortgages and assignments to comply with Section 3 of Chapter 206 of the Acts of 2007.  Although the mortgages and assignments were updated to reflect the required mortgage broker's name, post office address, and license number, the name, post office address and license number of the mortgage loan originator were not added to these documents, because the law governing mortgage loan originators does not become effective until July 1, 2008.

Note that in April, 2008, the Massachusetts mortgages were again updated to modify the manner in which a mortgage broker's information was being reflected in these documents based on changes authorized by Freddie Mac. (Although Fannie Mae has not yet posted this authorized change to its website, Fannie Mae's Legal Department has advised the Compliance Department that Freddie Mac's authorized change may be implemented into Fannie's mortgages.)  Specifically, a new Paragraph (C-1) (in the case of a MERS mortgage, Paragraph (D-1)) was added to the mortgages, as follows:

(C-1) or (D-1)        "Mortgage Broker" is _________________________. Mortgage Broker's post office address is________________________________ and Mortgage Broker's license number is_____________________.

If there is no mortgage broker or the mortgage broker is unknown, the above blanks would be completed with either "no mortgage broker" or "unknown", as applicable.

By July 1, 2008, the Massachusetts mortgages will be updated once again to reflect mortgage loan originator information by adding a new Paragraph C-2 ((D-2) in the case of MERS mortgages), which provides as follows:

(C-2) or (D-2)  "Mortgage Loan Originator" is __________________________.  Mortgage Loan Originator's post office address ________________________ and Mortgage Loan Originator's license number is ______________________.

If there is no mortgage loan originator or the mortgage loan originator is unknown, the blanks will be completed to indicate "no Mortgage Loan Originator" or "unknown," as applicable.

With respect to Massachusetts assignments, DocMagic's Compliance Department will add the following mortgage loan originator verbiage after the acknowledgement section:

   No Mortgage Loan Originator was involved with this Mortgage.

   The following Mortgage Loan Originator was involved with this Mortgage:

Name of Mortgage Loan Originator:

License No.:

Address:

For instructions on entering mortgage loan originator information in DocMagic so that the above blank fields populate correctly, please see the section below on the License Disclosure. 

Please note that investors' Massachusetts mortgages and assignments have not been updated unless requested to be updated by a particular investor. 

License Disclosure

Effective July 1, 2008, mortgage loan originators will be subject to laws governing mortgage loan originators, including a requirement that the originator be licensed in order to continue conducting business as of July 1.  Regulations implementing the mortgage loan originator laws, which became effective on May 30, 2008, established procedures and requirements for the licensing and supervision of mortgage loan originators under the provisions of M.G.L. c. 255F.

Section 1 of Chapter 255F defines a "mortgage loan originator" as a natural person who: (a) is employed by or associated with 1 and not more than 1 entity; and (b) negotiates, solicits, arranges, provides or accepts residential mortgage loan applications, or assists consumers in completing such applications, except that employees whose responsibilities are limited to clerical and administrative tasks and who do not solicit borrowers, accept applications or negotiate the terms of residential mortgage loans on behalf of the employer shall not be considered mortgage loan originators and do not require licenses.

Among the regulations applying to mortgage loan originators is 209 CMR 41.15, which provides:

41.10: License Disclosure

A Licensee shall disclose his/her Mortgage Loan Originator license number to all clients and/or residential mortgage loan applicants in writing at the time a fee is paid or a mortgage loan application is accepted.

To assist mortgage loan originators in complying with Section 41.10 on and after July 1, DocMagic's Compliance Department has updated its Massachusetts License Disclosure (MALD.MSC) to add a section that identifies the name of the mortgage loan originator and specifies his/her license number.

In order for the above information to appear in the License Disclosure, the DocMagic user must enter the information in the "Providers/Liens" tab of DocMagic.  "O," for Origination, must be selected as the "Type" in the first column of the screen.  The name and address of the originator together with his/her telephone number and email address would also be entered in this section of DocMagic.  The originator's license number would be entered under the column entitled "Ref #."  A screen shot showing where this information would be entered is set forth below.

If you have any questions regarding the contents of this article, please contact the Compliance Department.