1 of 1
HOUSE DOCKET, NO. 2680 FILED ON: 1/16/2025
HOUSE . . . . . . . . . . . . . . . No. 1272
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
James M. Murphy
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to mortgage review boards and a small business loan review board within the
Division of Banks.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:James M. Murphy4th Norfolk1/16/2025 1 of 5
HOUSE DOCKET, NO. 2680 FILED ON: 1/16/2025
HOUSE . . . . . . . . . . . . . . . No. 1272
By Representative Murphy of Weymouth, a petition (accompanied by bill, House, No. 1272) of
James M. Murphy relative to mortgage review boards and a small business loan review board
within the Division of Banks. Financial Services.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 1104 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act relative to mortgage review boards and a small business loan review board within the
Division of Banks.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 167 of the General Laws, as appearing in the 2020 Official
2Edition, is hereby amended by striking out section 14A and inserting in place thereof the
3following section:-
4 Section 14A. There shall be established within the Division of Banks 2 regional mortgage
5review boards in the commonwealth. There shall be a Boston metropolitan area mortgage review
6board which shall include the counties of Suffolk, Essex, Middlesex, Norfolk, Bristol, Plymouth,
7Barnstable, Dukes, and Nantucket; and a central and western Massachusetts mortgage review
8board which shall include the counties of Worcester, Franklin, Hampden, Hampshire and
9Berkshire. Each such board shall consist of 5 members appointed by the commissioner for a term 2 of 5
10of 3 years, 2 of whom shall be mortgagees and 3 of whom shall be community representatives;
11provided, however, that all members of each such board shall live or work within the respective
12region. The commissioner shall provide minority and demographic representation in the
13membership of each board.
14 Upon the expiration of the term of any member of a regional board, a successor shall be
15appointed, in like manner, for a term of 3 years. In the event of a vacancy, the commissioner
16may, in like manner, appoint a member who shall serve for the remainder of the unexpired term.
17Members of each such board shall serve without compensation, and shall be sworn to the faithful
18performance of their duties. Each regional board shall suggest for consideration by the
19commissioner 1 or more names for each such expiring term or vacancy.
20 The mortgage review boards shall meet on a regular basis to review each residential
21mortgage loan denial that an applicant believes was denied on the basis of the location of the
22property. Any applicant whose residential mortgage loan application is denied by any mortgagee
23making 5 or more residential mortgage loans in any calendar year shall be instructed by the
24mortgagee, in writing, at the time of denial of his or her right to appeal any such denial to the
25appropriate mortgage review board.
26 For the purposes of this section, a “residential mortgage loan denial” shall mean the
27denial of a loan on real property located within the respective regions of the Boston metropolitan
28area mortgage review board or the central and western Massachusetts mortgage review board
29having thereon a dwelling house with accommodations for 4 or less separate households and
30occupied, or to be occupied, in whole or in part by the obligor on the mortgage debt; provided,
31however, that residential property shall be limited to the primary residence of a person; provided 3 of 5
32further, that residential property shall not include an investment property or residence other than
33a primary residence; and provided further, that residential property shall not include residential
34property taken in whole or in part as collateral for a commercial loan.
35 Said board shall review each such submitted mortgage application, make its
36determination and advise the applicant thereof, in writing, within 45 days of such appeal of a
37mortgage loan application denial and if such board fails to complete said action within said 45
38days, the applicant will be considered to have exhausted his or her administrative remedies. The
39decision of the board shall be subject to review in the manner provided in chapter 30A, or in
40accordance with the provisions of section 64 of chapter 183.
41 The commissioner may promulgate rules and regulations governing the establishment,
42operation and procedures of said mortgage review boards.
43 SECTION 2. Chapter 167 of the General Laws, as so appearing, is hereby amended by
44striking out section 14C and inserting in place thereof the following section:-
45 Section 14C. There shall be established within the Division of Banks a small business
46loan review board in the commonwealth. The board shall consist of 5 members appointed by the
47commissioner for a term of 3 years, 2 of whom shall be representatives of banks or bank holding
48companies and 3 of whom shall be small business or community representatives. In making such
49appointments, the commissioner may take into consideration geographic diversity within the
50commonwealth.
51 Upon the expiration of the term of any member of the board, a successor shall be
52appointed, in like manner, for a term of 3 years. In the event of a vacancy, the commissioner
53may, in like manner, appoint a member who shall serve for the remainder of the unexpired term. 4 of 5
54Members of the board shall be sworn to the faithful performance of their duties. The board shall
55suggest for consideration by the commissioner 1 or more names for each such expiring term or
56vacancy.
57 The small business loan review board shall meet on a regular basis or, as demand for its
58services requires, to review small business loan denials that applicants believe were
59unreasonably denied. The small business loan review board shall be required to report the results
60of its findings to the applicant within 30 days of submission of request for review; provided,
61however, that the board may, at its discretion, extend the review period to within 60 days of a
62submission or request. Upon making a determination for reason of denial, the small business loan
63review board shall be required to provide information on its findings to the applicant and
64commissioner and shall provide information to the applicant on alternative sources of financing,
65including information on any small business financing programs or other relevant programs
66offered by the commonwealth. The commissioner shall file a report regarding the activities of the
67small business loan review board for each calendar year with the chairs of the joint committee on
68community development and small business, chairs of the joint committee on economic
69development and emerging technologies, and chairs of the joint committee on financial services.
70Such report shall be filed within 60 days of the end of each calendar year.
71 In addition, the small business loan review board may conduct annual studies or issue an
72annual report on the availability of credit to small businesses within all regions of the
73commonwealth and report back to the commissioner on its findings. The report may be made
74available to the public through the website of the office of consumer affairs and business
75regulation or the small business website established under section 3 of chapter 23A. The 5 of 5
76commissioner shall also promote the small business review board as a resource for small
77businesses on the small business website established under section 3 of chapter 23A.
78 For the purposes of this section, a “small business loan” shall mean a loan by a bank,
79federal bank or federally chartered credit union to a business organization or entity which either
80had gross annual revenues of $1 million or less in its preceding calendar year or which meets the
81size standards and revenue requirements of the Small Business Administration for each industry
82sector pursuant to 13 CFR 121.201.
83 The commissioner may promulgate rules and regulations governing the establishment,
84operation and procedures of said small business loan review board.