Bill > H846

This bill establishes two new review boards within the Division of Banks: regional mortgage review boards and a small business loan review board. The mortgage review boards, one for the Boston metropolitan area and another for central and western Massachusetts, will consist of five members each, appointed by the commissioner of banks for three-year terms, with a mix of mortgagees and community representatives. These boards will review residential mortgage loan denials where the applicant believes the denial was based on the property's location, and mortgagees will be required to inform applicants of their right to appeal to these boards. The small business loan review board will also have five members, appointed for three-year terms, comprising representatives from banks and small business or community representatives. This board will review small business loan denials that applicants believe were unreasonable, provide findings to the applicant and commissioner, and offer information on alternative financing sources. Both boards will operate under rules and regulations promulgated by the commissioner, and the small business loan review board will also be required to file annual reports on its activities and the availability of credit to small businesses.