Assigned Ratings

(1) Ratings in General. Subject to 209 CMR 54.25(2) and (3), the Commissioner assigns to a mortgage lender a rating of "outstanding," "high satisfactory," "satisfactory," "needs to improve," or "substantial noncompliance" based on the mortgage lender’s performance under the lending and service tests. (2) Lending Test. No mortgage lender may receive an assigned overall rating of “satisfactory” or higher unless it receives a rating of at least “satisfactory” on the lending test. (3) Effect of Evidence of Discriminatory or Other Illegal Credit Practices. Evidence of discriminatory or other illegal credit practices adversely affects the Commissioner's evaluation of mortgage lender’s performance. In determining the effect on the mortgage lender’s assigned rating, the Commissioner considers the nature and extent of the evidence, the policies and procedures that the mortgage lender has in place to prevent discriminatory or other illegal credit practices, any corrective action that the mortgage lender has taken or has committed to take, particularly voluntary corrective action resulting from self- assessment, the mortgage lender’s compliance with written policies and directives with regard to fair lending, and other relevant information. In connection with any type of lending activity described in 209 CMR 54.22, evidence of discriminatory or other credit practices that violate an applicable law, rule, or regulation includes but is not limited to: (a) Discrimination against applicants on a prohibited basis in violation, for example of the Equal Credit Opportunity Act or Fair Housing Act or M.G.L. chapter 151B; (b) Violations of M.G.L. c. 183C, Predatory Home Loan Practices; (c) Violations of § 5 of the Federal Trade Commission Act or M.G.L. c. 93A, including regulations of the Office of the Attorney General (940 CMR); (d) Violations of § 8 of the Real Estate Settlement Procedures Act; and (e) Violations of the provisions of M.G.L. c. 140D regarding a consumer’s right of rescission or other violations of M.G.L. c. 140D and its implementing regulations 209 CMR 32.00: Truth in Lending.