Document Updates: MA Borrowers Interest Worksheet (Cx5771)

The Massachusetts Borrower’s Interest Worksheet (Cx5771), is provided in accordance with Massachusetts General Laws Chapter 183, Section 28C, which prohibits a lender from knowingly making a home loan that pays off all or part of an existing home loan consummated within the prior 60 months—or other borrower debt—unless the refinancing is in the borrower’s interest. The “borrower’s interest” standard is to be narrowly construed, and the burden is on the lender to determine and demonstrate that the refinancing meets this standard.

Additionally, 209 CMR 53.03 reinforces this requirement, stating that a lender shall not knowingly refinance a home loan consummated within the previous 60 months unless the refinancing is in the borrower’s interest.

Under 209 CMR 53.02, a “home loan” is defined as a loan (excluding reverse mortgages) where:

• The borrower is a natural person;
• The debt is incurred primarily for personal, family, or household purposes; and
• The debt is secured by a mortgage on real estate improved with a dwelling designed for occupancy by no more than four families, and occupied (or intended to be occupied) in whole or in part by the borrower.

Accordingly, we are updating the document configuration to exclude investment properties, as they do not meet the definition of a “home loan” under these regulations.

These changes are available for testing on Stage & Stage 2 servers and will take effect on November 13. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.