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December 21, 2024 Clear | 18°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 14A: Mortgage review boards; members; terms; appointment; meetings; rules and regulations

Section 14A. There shall be four regional mortgage review boards operating in the commonwealth. There shall be a Boston metropolitan area mortgage review board which shall include the counties of Suffolk, Essex, Middlesex and Norfolk; a southeastern mortgage review board which shall include the counties of Bristol, Plymouth, Barnstable, Dukes County and Nantucket; a central Massachusetts mortgage review board which shall include Worcester county; and a western Massachusetts mortgage review board which shall include the counties of Franklin, Hampden, Hampshire and Berkshire. Each such board shall consist of seven members appointed by the commissioner, three of whom shall be mortgagees, three of whom shall be community representatives and one of whom shall be a member of the public; provided, however, that at least five of the members of each such board shall either live or work within the respective region. The commissioner shall provide proper minority and geographical representation in the membership of each board.

Upon the expiration of the term of any member of a regional board, a successor shall be appointed, in like manner, for a term of three years. In the event of a vacancy, the commissioner may, in like manner, appoint a member who shall serve for the remainder of the unexpired term. Members of each such board shall serve without compensation, and shall be sworn to the faithful performance of their duties. Each regional board shall suggest for consideration by the commissioner one or more names for each such expiring term or vacancy. No member shall be appointed for more than two consecutive three year terms.

The mortgage review boards shall meet on a regular basis to review each residential mortgage denial that an applicant believes was denied on the basis of the location of the property. Any applicant whose residential mortgage loan application is denied by any mortgagee making five or more mortgage loans in any calendar year on residential property located in the commonwealth of four units or less and occupied in whole or in part by the mortgagor shall be instructed by the mortgagee, in writing, at the time of denial of his right to appeal any such denial to the appropriate mortgage review board.

Said board shall review each such submitted mortgage application, make its determination and advise the applicant thereof, in writing, within forty-five days of such appeal of a mortgage loan application denial and if such board fails to complete said action within said forty-five days, the applicant will be considered to have exhausted his administrative remedies. The decision of the board shall be subject to review in the manner provided in chapter thirty A, or in accordance with the provisions of section sixty-four of chapter one hundred and eighty-three.

The commissioner may promulgate rules and regulations governing the establishment, operation and procedures of said mortgage review boards.