The Massachusetts Divisions of Banks last week issued a letter clarifying whether or not an employee of a nonprofit entity who originates a mortgage needs to be licensed by the commonwealth.

Prior to July 31, 2009, an employee of a nonprofit agency that was exempt from licensure was not required to obtain an MLO license. But the law changed and from that date forward even employees of a nonprofit have been required to be licensed, the DOB clarified in its letter.

“The division has become aware that some nonprofit entities exempted from the mortgage lender and mortgage broker license requirements may have failed to properly license their employees who were acting as MLOs, as was required after July 31, 2009,” it said in a statement. The full letter can be found here.