209 CMR 53.07 - Demonstration and Documentation of Compliance
(1) A lender shall develop policies and
procedures to demonstrate compliance with
209 CMR 53.00. Such policies
and procedures shall include, at a minimum, a worksheet or other document to be
dated at or before closing by the lender indicating how the lender determined
that the home loan is in the borrower's interest. Such worksheet or other
document shall include, at a minimum:
(a) if
a lender determines that a home loan meets one of the factors in
209 CMR
53.04(1), the lender shall
indicate specifically how the home loan fulfills such factor; or
(b) if a home loan does not meet one of the
factors in
209 CMR
53.04(1), a lender shall
indicate specifically how the lender determined that the home loan was in the
borrower's interest.
A lender may request that a borrower acknowledge receipt of such a worksheet or other documentation; provided, however, a lender shall not shift the burden to the borrower to demonstrate that a home loan is in the borrower's interest; and provided further that a lender shall not require a borrower to sign a waiver of future claims under M.G.L. c. 183, ยง 28C or 209 CMR 53.00.
(2) A lender shall
maintain the documentation required under 209 CMR 53.07(1) for a period of
three years and shall make such documentation available for inspection by the
Commissioner.
(3) A mortgage broker
may not make an affirmative determination that a home loan is in the borrower's
interest. Nothing herein shall prohibit a mortgage broker from requesting
information from a borrower on behalf of the lender or from transmitting
information to the borrower on behalf of the lender.
Notes
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No prior version found.