#2022-7 March 11, 2022

Russia Divestment Amendments Fail in Mass. House

On Wednesday, during debate on a $1.6 billion supplemental state budget, a Republican-led effort to divest state pension holdings from companies with business interests in Russia was rejected in the House as members rejected an amendment offered by House Minority Leader Brad Jones (R-North Reading) that would make Massachusetts one of a number of states that have used their retirement funds to make a political statement against Russia's invasion of Ukraine.

The amendment would have given Treasurer Deb Goldberg the authority she needs to sell off the small fraction of the state's $104 billion pension fund invested in assets tied to Russia.  However, the amendment was not included in the bulk amendment crafted by House Democratic leaders and Rep. Jones chose not to force an individual vote on the measure. 

The amendment would have also prevented companies owned by, controlled by, or based in Russia from accessing any cash or securities in banks subject to Massachusetts oversight. Similar bills have been filed in the Senate by Minority Leader Bruce Tarr (R-Gloucester) and Sen. Walter Timilty (D-Norfolk).  Both of those measures have been referred to the Joint Committee on Rules.

The Pension Reserve Investment Management (PRIM) board has said that none of its investments have been impacted by US sanctions on Russia, but the fund does have a small "exposure" to Russia of $140 million, or less than 0.2 percent of the total fund.  According to PRIM, the holdings are currently tied up in public equity and debt and cannot be sold until the Russian stock market, which has been closed since February 28, reopens for trading.  With the continued economic pressure on Russia from the global community, it is likely PRIM’s investments will be significantly devalued or worthless at that time.

Before leaving for a family vacation in Utah, Gov. Charlie Baker also signed an executive order directing all Massachusetts executive branch agencies to review their contracts and terminate any agreements with Russian state-owned companies. 

To read the executive order, click here.

Division of Banks to Hold Virtual Hearing on Licensing of Mortgage Lenders and Brokers

The Division of Banks announced that it will hold a virtual public hearing on Wednesday, March 16, 2022 at 10:00 AM relative to the amendments to 209 CMR 42.00: The Licensing of Mortgage Lenders and Mortgage Brokers. 

The purpose of the proposed amendments to 209 CMR 42.00 is as follows: (1) to update the definition of “mortgage broker” to provide clarity regarding which activities by entities that provide information regarding prospective borrowers, known as lead generators, would require licensure; (2) to add a new section regarding licensure exemptions; and (3) to add two definitions to the regulation that were added to G.L. c. 255E pursuant to Chapter 228 of the Acts of 2018.  These two definitions added a new mortgage licensing exemption for bona fide nonprofit affordable homeownership organizations and clarified the existing mortgage licensing exemption for instrumentalities of the United States or any state. There are other technical updates to both regulations as well.

Written comments may be submitted to the Division on the proposed amendments until Wednesday, March 23, 2022 at 5:00 PM.

To review the public hearing notice and proposed amendments please click here.

New & Improved 2021 Massachusetts Banking Law Book **Electronic Access Only**

After months of compiling and integrating two years of new state laws, emergency COVID-19 orders, and numerous edits and revisions, we are pleased to report the 2021 Massachusetts Banking Law Book is not only back but going digital!

The 2021 edition of Law Book continues its tradition of including all updated relevant MA statutes, regulations, an updated comprehensive cross-reference matrix of Massachusetts banking law to regulatory bulletins and Division of Bank opinion letters and an up-to-date list of directives and opinions by the Division. The 2021 Edition also contains all the trust, probate and estate laws such as the Uniform Probate and Trust Codes, all in one single fully electronic and searchable book!

With numerous revisions, additions, and corrections this publication is an essential resource for legal and compliance professionals throughout the industry.

Please click here to download the order form to sign up for electronic access today! Discounts are available for larger orders.