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Serving
Massachusetts Agencies

Licensing of Lending or Lender

Regulations

Lending money in Massachusetts and taking back security in an isolated transaction would not require licensing. First, Mass. Gen. Laws Chapter 255E, Section 2, although prohibiting a person from acting as a mortgage lender unless properly licensed, provides that the statute shall not apply to any mortgage lender making fewer than five mortgage loans within any period of twelve consecutive months. Moreover, the three-day rescission of the loan and other consumer credit disclosure regulations would appear not to be an issue because the applicable statute, Mass. Gen. Laws, Chapter 140D, Section 10, applies only to a "creditor," and that term is defined as a person who "regularly extends" consumer credit.