Massachusetts Adopts Provisions Regarding Unfair and Deceptive Acts and Practices in Consumer Transactions
Effective immediately, the Massachusetts Office of Consumer Affairs and Business Regulations has adopted revisions to 209 CMR 40.00 in order to bring Massachusetts regulations regarding Unfair and Deceptive Practices in Consumer Lending in line with their counterpart Federal regulations. The primary revisions affect High Cost Mortgage Disclosures, High Cost Mortgage Limitations, and Prohibited Practices in Connection with High Cost Mortgages.
40.04 High Cost Mortgage Disclosures
The Massachusetts specific provisions regarding disclosures have been eliminated. Under revised 40.04, it is considered an unfair and deceptive act for a lender who is not subject to 209 CMR 32.00 to fail to make any disclosures required by 12 CFR 1026.32(c).
40.05 High Cost Mortgage Limitations
The Massachusetts provisions regarding disclosures have been eliminated. Under revised 40.05, it is considered an unfair act or practice for a lender who is not subject to 209 CMR 32.00 to make a high cost mortgage that imposes any limitations described in 12 CFR 1026.32(d)
40.06 Prohibited Practices in Connection with High Cost Mortgages
The Massachusetts provisions regarding disclosures have been eliminated. Under revised 40.06, it is considered an unfair act or practice for a lender not subject to 209 CMR 32.00 to engage in any act or practice prohibited under 12 CFR 1026.34 when extending a high cost home loan.
Revised 209 CMR 40.00 can be found at: http://www.mass.gov/courts/docs/lawlib/201-209cmr/209cmr40.pdf
Adam Faria, JD, is a regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at Suffolk University Law School. He is admitted to the bar in Massachusetts and New Hampshire.
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