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SD 2519

An Act relative to mortgage review boards and a small business loan review board within the division of banks

194th Legislature (2025-2026) Introduced by Paul Feeney

Bill creates mortgage and small business loan review boards under Massachusetts Division of Banks to oversee lending practices and address consumer complaints.

House concurred
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Bill Summary · SD 2519

Legislative bill overview

SD 2519 establishes mortgage review boards and a small business loan review board within Massachusetts's Division of Banks. These boards would provide oversight and review mechanisms for mortgage lending practices and small business lending decisions. The bill creates formal structures for examining complaints and potentially addressing unfair or problematic lending practices in these sectors.

Why is this important

Mortgage and small business lending directly affect economic opportunity and financial stability for individuals and entrepreneurs. Review boards can help identify systemic lending discrimination, predatory practices, or other consumer protection violations that might otherwise go unaddressed. This mechanism provides accountability within the banking sector and a potential recourse avenue for borrowers who believe they've been treated unfairly.

Potential points of contention

  • Industry compliance costs: Banks may argue that additional review requirements increase administrative burden and operational costs, potentially affecting lending availability or rates
  • Board authority and scope: Unclear what enforcement powers these boards would have—whether they can levy penalties, force loan modifications, or only make recommendations—creating questions about actual effectiveness
  • Small business lending concerns: Small business lenders may worry that stricter review processes could make them reluctant to lend to riskier borrowers, potentially reducing credit access for marginalized entrepreneurs

Compiled from official sources — confirm details with the bill’s official record.

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