2020 Massachusetts ANNUAL REPORT Division of

2020 Massachusetts

ANNUAL REPORT Division of

Banks

dob

OCABR

The Office of Consumer Affairs and Business Regulation

Table of Contents

Accomplishments............................................................................................................................ 3 Activities Related to the COVID-19 Pandemic.............................................................................. 5 2020 Year in Review ....................................................................................................................... 8 Annual Enforcement ..................................................................................................................... 14 Agency Strategic Goals................................................................................................................. 16 Non-Depository Institution Supervision ......................................................................................... 17

Mortgage Supervision ............................................................................................................ 18 Consumer Finance/Money Services Business Activity ........................................................... 19 Depository Institution Supervision ................................................................................................. 20 Bank Summary: Balance Sheet and Income Statement ......................................................... 21 Credit Union Summary: Balance Sheet and Income Statement ............................................. 24 Consumer Protection and Outreach .............................................................................................. 27 Foreclosure Prevention & Other Grant Initiatives .......................................................................... 28 Community Reinvestment Act ....................................................................................................... 29 Cyber/IT/Fintech ........................................................................................................................... 31 Legal Unit...................................................................................................................................... 32 Major Depository Corporate Transactions ..................................................................................... 33 Legislative Summary..................................................................................................................... 36 Staff List........................................................................................................................................ 39 Appendix I: Cooperative Banks ..................................................................................................... 40 Appendix II: Savings Banks........................................................................................................... 79 Appendix III: Limited Purpose Trust Companies.......................................................................... 165 Appendix IV: Trust Companies.................................................................................................... 168 Appendix V: Credit Unions .......................................................................................................... 203

This annual report has been developed in accordance with Massachusetts General Laws chapter 167, ?13.

Residents of the Commonwealth:

The goal of the Office of Consumer Affairs & Business Regulation (OCABR) is to empower consumers through advocacy, educational programs, and community outreach, while ensuring a fair and competitive marketplace for the business our five agencies regulate. In advancing our mission, OCABR continually strives to find a balance between protecting consumer rights and supporting business vitality throughout the state.

I believe that local businesses are the lifeblood of our Massachusetts economy and many of these are within our regulatory purview. At no other time in recent history has that been more true than over the past year when the COVID-19 pandemic threatened our economy and forced many businesses to dramatically alter how they operate. Our agency heads and their staff worked tirelessly through the state of emergency to support the Commonwealth businesses that they regulate, and I commend them for their hard work, commitment, and leadership.

So, as we all return to some semblance of normalcy, I would like to share a few of the highlights from this past year with you. To that end, we have prepared an annual report for the Massachusetts Division of Banks (DOB).

Together, OCABR and its regulatory agencies employ over 600 individuals and have a combined operating budget of $87 million. In addition, OCABR oversees the state's Home Improvement Contractor (HIC) Program, Lemon Laws, and Data Breach Notification Law. Finally, we operate a Consumer Hotline Monday through Friday from 9:00AM - 4:30PM @ 617-973-8787.

I hope that the contents this report provide you with insight into the work that we have done this past year as well as our commitment to the citizens of the Commonwealth.

Sincerely,

Letter from

Undersecretary Palleschi

Edward A. Palleschi Undersecretary Office of Consumer Affairs and Business Regulation

MASSACHUSETTS DIVISION OF BANKS

As we emerge from a year fraught with the challenges of a global health pandemic, it is truly my pleasure to present the 2020 Annual Report of the Massachusetts Division of Banks (Division). As employers and employees of all industries grappled with response to the coronavirus, I am incredibly proud of my colleagues at the Division of Banks who continued to meet our agency mission of ensuring the safety and soundness of financial institutions and balancing consumer protections for Commonwealth residents with virtually zero interruption. Our team rose to the occasion with proactive and responsive engagement with stakeholders including the Baker-Polito Administration, the Massachusetts Legislature, industry, and our fellow state and federal regulators as we collectively navigated a rapidly evolving environment. I applaud our regulated financial institutions who demonstrated early in the COVID-19 pandemic a willingness to understand customer needs while balancing the health and safety considerations for their customers and employees alike.

While federal and state legislation (including the CARES Act and Massachusetts Chapter 65) included provisions for consumer financial relief particularly in the mortgage space, I note that many statechartered banks, credit unions, and finance companies played a pivotal role in our local economy. They provided financial relief to Massachusetts consumers (via waived fees, proactive engagement with borrowers, millions of dollars in covid-relief including contributions including PPE to the healthcare community and efforts to combat food insecurity for vulnerable populations), and notably they served as critical players in the Paycheck Protection Program to support small businesses.

The Division of Banks managed to conduct our "normal" business in an extraordinary year--notching several notable accomplishments amongst pages of highlights as the following report showcases. In 2020, the Division achieved re-accreditation in the areas of bank, credit union, and mortgage supervision--an event which occurs every five years and requires the attention of the entire agency. We pursued efficiency and technology solutions to achieve remote operation and engagement with regulated entities. We bolstered existing relationships with key stakeholders to reflect on prior financial crises as we brainstormed to anticipate the financial impacts of a novel coronavirus. We recognized the opportunity to leverage our existing industry outreach platform, DOB connects, to reach hundreds of participants from the industry and consumer groups on pertinent and emerging topics including COVID Compliance, Diversity/Equity/Inclusion, and Fintech & Innovation. We welcomed a dozen new colleagues to the Division via an entirely remote hiring and onboarding process. We witnessed significant licensee growth particularly in the mortgage space as consumers refinanced in record amounts. All the while, we managed to keep our agency functioning and our employees healthy.

While covid and its economic impact will continue to dominate our regulatory conversations and examinations for the foreseeable future, the Division and our regulated entities are well positioned for the year ahead.

Sincerely,

Letter from

Commissioner Gallagher

Mary L. Gallagher Commissioner Division of Banks

Accomplishments

2020 ANNUAL REPORT

14,591

Licenses issued or renewed by the Division to mortgage companies, mortgage loan originators, money services businesses, debt collectors, loan servicers, and consumer finance companies.

3,972

Consumers receiving reimbursements totaling $2.5 million from complaint resolution or Division enforcement actions.

449

Total number of completed bank, credit union, licensee, and other approval requests (443) and total number of legal opinions (6) issued.

390 77

Total number of examination reports mailed to depository (142) & non-depository (248) institutions.

Foreclosure delay requests received by the Division, of which 43 were granted. The number of foreclosure delay requests received by the Division was down 75% in 2020 compared with 2019. The decrease in requests was largely driven by the foreclosure moratoriums and forbearance opportunities provided in response to the COVID-19 pandemic.

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