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Mortgage licensing / Massachusetts

Massachusetts Third Party Loan Servicer Registration

company licence · NMLS MATHRDPARTYLNSERV_C · DOB

This registration is required of any company or sole proprietorship who uses an instrumentality of interstate commerce or the mails in any business the principal purpose of which is servicing a loan directly or indirectly, owed or due or asserted to be owed or due another.

Requirements (19)

  1. Step 1

    Submission of Company Form (MU1): Complete and submit the Company Form (MU1) in NMLS. This form serves as the application for the registration through NMLS.

    Submitted via: NMLS

  2. Step 2

    Other Trade Name: If operating under a name that is different from the applicant’s legal name, that name (“Trade Name”, “Assumed Name” or “DBA”) must be listed under the Other Trade Names section of the Company Form (MU1). If the applicant intends to operate under more than one trade name or DBA designation, separate “Other Trade Name (OTN) licenses” are required for each additional trade name. However, the applicant should not apply for any OTN “licenses” through NMLS until they are approved and licensed to conduct business in Massachusetts. When adding the additional trade names, the licensee must apply for separate company “[License Type] – Other Trade Name [#] licenses” in the License /Registration section of the Company Form (MU1). A licensee may apply for up to 8 OTN “licenses” per business license type. The fees associated with each OTN “license” are equal to the corresponding company license fees, and all fees collected through NMLS are non-refundable. It is the applicant’s responsibility to ensure that all names are properly registered with the required municipality or government agency.

    Submitted via: NMLS

  3. Step 3

    The following parameters regarding trade names and/or use of multiple trade names have been established: 1) the trade name may not be a separate legal entity from the applicant; and 2) Registrants must consistently use one single trade name when dealing with a consumer over the life of the loan agreement, installment contract, credit application, debt obligation, remittance transaction, cashing or sale of a check, money order, etc.

  4. Step 4

    Resident/Registered Agent: The Resident/Registered Agent, the entity that will receive service of legal process on behalf of the applicant or licensee must be listed under the Resident/Registered Agent section of the Company Form (MU1), and must match the information currently on record with Secretary of the Commonwealth of Massachusetts.

    Submitted via: NMLS

  5. Step 5

    Primary Contact Employees: The following individuals must be entered into the Contact Employees section of the Company Form (MU1). • Primary Company Contact • Primary Consumer Complaint Contact

    Submitted via: NMLS

  6. Step 6

    Non-Primary Contact Employees: Massachusetts requires that an individual(s) be identified as a Non-Primary Contact for the following areas. These contacts must be listed in the Contact Employees section of the Company Form (MU1). • Accounting • Exam Billing • Licensing • Consumer Complaint (Public) • Exam Delivery • Litigation • Consumer Complaint (Regulator) • Legal • Pre-Exam Contact

    Submitted via: NMLS

  7. Step 7

    Bank Account: Bank account information is not required. The Bank Account section of the Company Form (MU1) can be left blank.

  8. Step 8

    Disclosure Questions: Provide a complete and detailed explanation and document upload for each “Yes” response to Disclosure Questions made by the company or related control persons (MU2). See the Company Disclosure Explanations Quick Guide for instructions.

    Submitted via: Upload in NMLS in the Disclosure Explanations section of the Company Form (MU1) or Individual Form (MU2).

  9. Step 9

    Control Person (MU2) Attestation: Complete the Individual Form (MU2) in NMLS. This form must be attested to by the applicable control person before it is able to be submitted along with the Company Form (MU1). Please review the NMLS Policy Guidebook for more information on the definition of Control and Control Person.

    Submitted via: NMLS

  10. Step 10

    Qualifying Individual: An on-site manager is required to be appointed for the applicant’s main office location. This individual, referred to as the Location Manager in Massachusetts, must be listed in the Qualifying Individual section of Company Form (MU1), and his/her business address must match the address listed as the “Main Address” on the MU1.

    Submitted via: NMLS

  11. Step 11

    Credit Report: Individuals in a position of control are NOT required to authorize a credit report through NMLS.

  12. Step 12

    FBI Criminal Background Checks MU2 Individual FBI Criminal Background Checks are NOT required

  13. Step 13

    Business Plan: Upload a business plan outlining the following information: • Marketing strategies • Products and services available to consumers through the applicant • Operating structure the applicant intends to employ • Operational policies and procedures • Types of loans the applicant intends to service • Anticipated sources and methods of obtaining loans and portfolios This document should be named [Company Legal Name] Business Plan. Note: If the existing uploaded business plan already includes the above information, an additional document does not need to be uploaded. A company should only upload a single business plan. If state-specific material is required, this information should be added to the existing uploaded business plan.

    Submitted via: Upload in NMLS: under the Document Type Business Plan in the Document Uploads section of the Company Form (MU1).

  14. Step 14

    Certificate of Authority/Good Standing Certificate: Upload a State-issued and approved document by the Secretary of the Commonwealth of Massachusetts, dated not more than 60 days prior to the filing of the application through NMLS that demonstrates authorization to do business in Massachusetts. This document should be named [MA Certificate of Authority OR MA Certificate of Good Standing].

    Submitted via: Upload in NMLS: under the Document Type Certificate of Authority/Good Standing Certificate in the Document Uploads section of the Company Form (MU1).

  15. Step 15

    Formation Documents: Determine classification of applicant’s legal status and submit a State certified copy of the requested applicable documentation detailed below. Original formation documents and all subsequent amendments, thereto including a list of any name changes. Sole Proprietor • Business Registration, if applicable Unincorporated Association: • By-Laws or constitution (including all amendments). General Partnership: • Partnership Agreement (including all amendments). Limited Liability Partnership: • Certificate of Limited Liability Partnership; and • Partnership Agreement (including all amendments). Limited Partnership: • Certificate of Limited Partnership; and • Partnership Agreement (including all amendments). Limited Liability Limited Partnership: • Certificate of Limited Liability Limited Partnership; and • Partnership Agreement (including all amendments). Limited Liability Company (“LLC”): • Articles of Organization (including all amendments); • Operating Agreement (including all amendments); • IRS Form 2553 or IRS Form 8832 if S-corp treatment elected; and • LLC resolution if authority not in operating agreement. Corporation: • Articles of Incorporation (including all amendments); • By-laws (including all amendments), if applicable; • Shareholder Agreement (including all amendments), if applicable; • IRS Form 2553 if S-corp treatment elected; and • Corporate resolution if authority to complete application not in By-Laws or Shareholder Agreement, as amended, as applicable. Not for Profit Corporation • Documents requested of a Corporation; and • Proof of nonprofit status • Internal Revenue Service (“IRS”) 501(c)(3) designation letter; or • statement from a State taxing body or the State attorney general certifying that: (i) the entity is a nonprofit organization operating within the State; and (ii) no part of the entity’s net earnings may lawfully benefit any private shareholder or individual; or • entity's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or • Any of the three preceding items described, if that item applies to a State or national parent organization, together with a statement by the State or parent organization that the applicant is a local nonprofit affiliate. Trust (Statutory) • Certificate of Trust; and • Governing instrument (all amendments)

    Submitted via: Upload in NMLS: under the Document Type Formation Document in the Document Uploads section of the Company Form (MU1). This document should be named Formation Documentation [Date of Creation (MM-DD-YYYY)].

  16. Step 16

    Management Chart: Submit a Management chart displaying the applicant’s directors, officers, and managers (individual name and title). Must also identify compliance reporting and internal audit structure. This document should be named [Company Legal Name] Management Chart. Note: If the existing uploaded management chart already includes the above information, an additional document does not need to be uploaded. A company should only upload a single management chart.

    Submitted via: Upload in NMLS: under the Document Type Management Chart in the Document Uploads section of the Company Form (MU1).

  17. Step 17

    Organizational Chart/Description: Submit a chart showing (or a description which includes) the percentage of ownership of: • Direct Owners (total direct ownership percentage must equate to 100%) • Indirect Owners • Subsidiaries and Affiliates of the applicant This document should be named [Company Legal Name] Organizational Chart – Description. Note: If the existing uploaded Organizational Chart/Description already includes the above information, an additional document does not need to be uploaded. A company should only upload a single organizational chart.

    Submitted via: Upload in NMLS: under the Document Type Organizational Chart/Description in the Document Uploads section of the Company Form (MU1).

  18. Step 18

    Form W-9: Obtain a Form W-9 from the IRS website. Complete and submit the Form for the applicant. Please be advised that the applicant who is a sole proprietor must obtain an IRS Employee Identification Number. For the purposes of this application, do not submit a W-9 Form with a social security number provided. This document should be named MA – Form W-9

    Submitted via: Upload in NMLS: under the Document Type Additional Requirements in the Document Uploads section of the Company Form (MU1).

  19. Step 19

    EIN Assignment Letter: Upload a copy of the Employer Identification Number (EIN) Assignment Letter issued by the IRS. This Document should be name EIN Assignment Letter – Applicant Name

    Submitted via: Upload in NMLS: under the Document Type Additional Requirements in the Document Uploads section of the Company Form (MU1)

General information

Who Is Required to Have This Registration? • Any company or person who uses an instrumentality of interstate commerce or the mails in any business the principal purpose of which servicing a loan directly or indirectly, owed or due or asserted to be owed or due to another. Note: Third Party Loan Servicing means receiving a scheduled periodic payment from a consumer pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments to the owner of the loan or other third party of principal and interest and other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the servicing loan document or servicing contract. In the case of a home equity conversion mortgage or reverse mortgage, servicing includes making payments to the borrower. Who Is Not Required to Have This Registration? • A student loan servicer licensed under Massachusetts General Laws Chapter 93L who is engaged in the activities of a student loan servicer; provided, however, that if a student loan servicer acts, represents, operates or holds itself out as a third party loan servicer outside of the scope of said chapter 93L, the student loan servicer shall register as a third party loan servicer. • Any company or person licensed as a debt collector shall not be required to register as a third party loan servicer pursuant to Division of Banks Regulation 209 CMR 18.01(2)(b). Please see Massachusetts General Law chapter 93, sections 24 to 28 and the Division of Banks’ regulation 209 CMR. 18.00 for more information on the distinctions between the debt collector license and the third party loan servicer registration. Please be advised that any company or person who collects or attempts to collect a debt owed or due or asserted to be owed or due another to the extent the activity concerns a debt which is in default at the time it was obtained by the company or person must be licensed as a debt collector in Massachusetts. Additionally, any company or person who purchases and collects a debt that was purchased while in default is also required to be licensed as a debt collector. Companies must apply for a debt collector license through NMLS. Massachusetts General Laws chapter 93, section 24C: Registration of third-party loan servicer Massachusetts Division of Banks Regulation 209 CMR 18.00: Business of Debt Collectors, Student Loan Servicers, & Third Party Loan Servicers The Massachusetts Division of Banks does not issue paper licenses for this registration type.

Other Massachusetts mortgage licenses

Sourced from the NMLS/CSBS state licensing record, last updated June 18, 2024. Requirements change — confirm against the state agency before filing. Not legal advice.

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