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#2158434 - 12/27/17 09:31 AM Mass Gen. Laws Ann. ch. 184 Sect. 17B Disclosure
WestKerryGirl Offline
Junior Member

Registered: 12/27/13
Posts: 29
Under Massachusetts statute, Mass Gen. Laws Ann. ch. 184, Section 17B, you, the Borrower are entitled
to know the following:
1. The responsibility of the attorney for the Lender is to protect the interest of the Lender.
2. You, the Borrower, may at your own expense, engage an attorney of your own selection to represent
your interests in this transaction.

I would like to confirm that this initial disclosure is required for HE Loans and HELOCS are well as first lien mortgages for owner occupied 1-4 family?

When I looked up all the meaning of ''Residential mortgage loan'' -any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling as defined in section 103(v) of the Truth in Lending Act, 15 U.S.C.

TILA Section 103(cc) defines “residential mortgage loan” to mean a consumer credit transaction secured by a mortgage or equivalent consensual security interest “on a dwelling or on residential real property that includes a dwelling.” Under TILA and Regulation Z, the term “dwelling” means a residential structure with one to four units, whether or not the structure is attached to real property, and includes a condominium or cooperative unit, mobile home, and trailer, if used as a residence.

Thank you and Happy Holidays.

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#2158521 - 12/27/17 03:51 PM Re: Mass Gen. Laws Ann. ch. 184 Sect. 17B Disclosure [Re: WestKerryGirl]
John Burnett Offline

10K Club

Registered: 10/27/00
Posts: 36678
Loc: Cape Cod
Don't go to outside definitions unless they are cited in the statute itself. In this case, c. 184 § 17B makes no such outside references for definitions, so looking at federal law is not appropriate. Section 17B applies only to applications for a mortgage loan on 1-to-4 family residential property that is to be owner-occupied, in whole or in part. It does not apply to other than real estate. The notice requirement applies to mortgage loans, whether the security is a first lien or a junior lien, so it will apply to HE loans and HELOCs.

Here's what the statute says:

Section 17B: Mortgage loan application; real estate consisting of a certain dwelling house; required statements and information

Section 17B. Every application for a mortgage loan on 1–to–4–family residential property and occupied or to be occupied in whole or in part by the obligor on the mortgage debt shall be made on a printed form which shall contain the following 2 statements in type of at least 2 points larger than the other type used on the application:

(1) The responsibility of the attorney for the mortgagee is to protect the interest of the mortgagee.

(2) Mortgagors may, at their own expense, engage an attorney of their selection to represent their interests in the transaction.

A printed copy of the above statements shall be given to the mortgagor at the time of making the application.

That last paragraph means that the notice has to be in a form the applicant can keep after handing in the application.
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John S. Burnett
BankersOnline.com
Professional Compliance Nerd since 1976
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