Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S751 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 1 of 1
22 SENATE DOCKET, NO. 2519 FILED ON: 1/17/2025
33 SENATE . . . . . . . . . . . . . . No. 751
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Paul R. Feeney
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to mortgage review boards and a small business loan review board within the
1313 division of banks.
1414 _______________
1515 PETITION OF:
1616 NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and Norfolk 1 of 5
1717 SENATE DOCKET, NO. 2519 FILED ON: 1/17/2025
1818 SENATE . . . . . . . . . . . . . . No. 751
1919 By Mr. Feeney, a petition (accompanied by bill, Senate, No. 751) of Paul R. Feeney for
2020 legislation to establish mortgage review boards and a small business loan review board within
2121 the division of banks. Financial Services.
2222 The Commonwealth of Massachusetts
2323 _______________
2424 In the One Hundred and Ninety-Fourth General Court
2525 (2025-2026)
2626 _______________
2727 An Act relative to mortgage review boards and a small business loan review board within the
2828 division of banks.
2929 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3030 of the same, as follows:
3131 1 SECTION 1. Chapter 167 of the General Laws, as appearing in the 2022 Official
3232 2Edition, is hereby amended by striking out section 14A and inserting in place thereof the
3333 3following section:-
3434 4 Section 14A. There shall be established within the Division of Banks 2 regional mortgage
3535 5review boards in the commonwealth. There shall be a Boston metropolitan area mortgage review
3636 6board which shall include the counties of Suffolk, Essex, Middlesex, Norfolk, Bristol, Plymouth,
3737 7Barnstable, Dukes, and Nantucket; and a central and western Massachusetts mortgage review
3838 8board which shall include the counties of Worcester, Franklin, Hampden, Hampshire and
3939 9Berkshire. Each such board shall consist of 5 members appointed by the commissioner for a term
4040 10of 3 years, 2 of whom shall be mortgagees and 3 of whom shall be community representatives;
4141 11provided, however, that all members of each such board shall live or work within the respective 2 of 5
4242 12region. The commissioner shall provide minority and demographic representation in the
4343 13membership of each board.
4444 14 Upon the expiration of the term of any member of a regional board, a successor shall be
4545 15appointed, in like manner, for a term of 3 years. In the event of a vacancy, the commissioner
4646 16may, in like manner, appoint a member who shall serve for the remainder of the unexpired term.
4747 17Members of each such board shall serve without compensation, and shall be sworn to the faithful
4848 18performance of their duties. Each regional board shall suggest for consideration by the
4949 19commissioner 1 or more names for each such expiring term or vacancy.
5050 20 The mortgage review boards shall meet on a regular basis to review each residential
5151 21mortgage loan denial that an applicant believes was denied on the basis of the location of the
5252 22property. Any applicant whose residential mortgage loan application is denied by any mortgagee
5353 23making 5 or more residential mortgage loans in any calendar year shall be instructed by the
5454 24mortgagee, in writing, at the time of denial of his or her right to appeal any such denial to the
5555 25appropriate mortgage review board.
5656 26 For the purposes of this section, a “residential mortgage loan denial” shall mean the
5757 27denial of a loan on real property located within the respective regions of the Boston metropolitan
5858 28area mortgage review board or the central and western Massachusetts mortgage review board
5959 29having thereon a dwelling house with accommodations for 4 or less separate households and
6060 30occupied, or to be occupied, in whole or in part by the obligor on the mortgage debt; provided,
6161 31however, that residential property shall be limited to the primary residence of a person; provided
6262 32further, that residential property shall not include an investment property or residence other than 3 of 5
6363 33a primary residence; and provided further, that residential property shall not include residential
6464 34property taken in whole or in part as collateral for a commercial loan.
6565 35 Said board shall review each such submitted mortgage application, make its
6666 36determination and advise the applicant thereof, in writing, within 45 days of such appeal of a
6767 37mortgage loan application denial and if such board fails to complete said action within said 45
6868 38days, the applicant will be considered to have exhausted his or her administrative remedies. The
6969 39decision of the board shall be subject to review in the manner provided in chapter 30A, or in
7070 40accordance with the provisions of section 64 of chapter 183.
7171 41 The commissioner may promulgate rules and regulations governing the establishment,
7272 42operation and procedures of said mortgage review boards.
7373 43 SECTION 2. Chapter 167 of the General Laws, as so appearing, is hereby amended by
7474 44striking out section 14C and inserting in place thereof the following section:-
7575 45 Section 14C. There shall be established within the Division of Banks a small business
7676 46loan review board in the commonwealth. The board shall consist of 5 members appointed by the
7777 47commissioner for a term of 3 years, 2 of whom shall be representatives of banks or bank holding
7878 48companies and 3 of whom shall be small business or community representatives. In making such
7979 49appointments, the commissioner may take into consideration geographic diversity within the
8080 50commonwealth.
8181 51 Upon the expiration of the term of any member of the board, a successor shall be
8282 52appointed, in like manner, for a term of 3 years. In the event of a vacancy, the commissioner
8383 53may, in like manner, appoint a member who shall serve for the remainder of the unexpired term.
8484 54Members of the board shall be sworn to the faithful performance of their duties. The board shall 4 of 5
8585 55suggest for consideration by the commissioner 1 or more names for each such expiring term or
8686 56vacancy.
8787 57 The small business loan review board shall meet on a regular basis or, as demand for its
8888 58services requires, to review small business loan denials that applicants believe were
8989 59unreasonably denied. The small business loan review board shall be required to report the results
9090 60of its findings to the applicant within 30 days of submission of request for review; provided,
9191 61however, that the board may, at its discretion, extend the review period to within 60 days of a
9292 62submission or request. Upon making a determination for reason of denial, the small business loan
9393 63review board shall be required to provide information on its findings to the applicant and
9494 64commissioner and shall provide information to the applicant on alternative sources of financing,
9595 65including information on any small business financing programs or other relevant programs
9696 66offered by the commonwealth. The commissioner shall file a report regarding the activities of the
9797 67small business loan review board for each calendar year with the chairs of the joint committee on
9898 68community development and small business, chairs of the joint committee on economic
9999 69development and emerging technologies, and chairs of the joint committee on financial services.
100100 70Such report shall be filed within 60 days of the end of each calendar year.
101101 71 In addition, the small business loan review board may conduct annual studies or issue an
102102 72annual report on the availability of credit to small businesses within all regions of the
103103 73commonwealth and report back to the commissioner on its findings. The report may be made
104104 74available to the public through the website of the office of consumer affairs and business
105105 75regulation or the small business website established under section 3 of chapter 23A. The
106106 76commissioner shall also promote the small business review board as a resource for small
107107 77businesses on the small business website established under section 3 of chapter 23A. 5 of 5
108108 78 For the purposes of this section, a “small business loan” shall mean a loan by a bank,
109109 79federal bank or federally chartered credit union to a business organization or entity which either
110110 80had gross annual revenues of $1 million or less in its preceding calendar year or which meets the
111111 81size standards and revenue requirements of the Small Business Administration for each industry
112112 82sector pursuant to 13 CFR 121.201.
113113 83 The commissioner may promulgate rules and regulations governing the establishment,
114114 84operation and procedures of said small business loan review board.