Bill > H1272

This bill modifies two review boards within the Division of Banks: the regional mortgage review boards and the small business loan review board. For mortgage review boards, the bill establishes two regional boards (one for the Boston metropolitan area and another for central and western Massachusetts) consisting of 5 members appointed by the commissioner, including 2 mortgagees and 3 community representatives who live or work in the respective region. These boards will review residential mortgage loan denials where an applicant believes the denial was based on property location, with applicants having the right to appeal denials from mortgagees making 5 or more residential loans annually. The board must review and respond to appeals within 45 days, providing a written determination. For the small business loan review board, the bill creates a 5-member board with 2 bank representatives and 3 small business or community representatives, tasked with reviewing small business loan denials. This board must report findings to applicants within 30-60 days, provide information on alternative financing sources, and submit an annual report to legislative committees about credit availability for small businesses. A "small business loan" is defined as a loan to a business with gross annual revenues of $1 million or less, or meeting Small Business Administration size standards. Both boards will operate under rules and regulations established by the commissioner.

Business and Industry

https://malegislature.gov/Bills/194/H1272