1.1 	A bill for an act
1.2 	relating to commerce; requiring licensed mortgage originators and servicers to 
1.3 	know Minnesota lending laws and ethical lending practices;amending Minnesota 
1.4 	Statutes 2004, section 58.06, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 58.06, subdivision 2, is amended to read:
1.7 		Subd. 2.Application contents. The application must contain the name and 
1.8 	complete business address or addresses of the license applicant. If the license applicant 
1.9 	is a partnership, limited liability partnership, association, limited liability company, 
1.10 	corporation, or other form of business organization, the application must contain the 
1.11 	names and complete business addresses of each partner, member, director, and principal 
1.12 	officer. The application must also include a description of the activities of the license 
1.13 	applicant, in the detail and for the periods the commissioner may require. The application 
1.14 	must also include all of the following:
1.15 	(a) an affirmation under oath that the applicant:
1.16 	(1) will maintain competent staff, knowledgeable about Minnesota lending law 
1.17 	and ethical lending practices, and adequate staffing levels, through direct employees or 
1.18 	otherwise, to meet the requirements of this chapter;
1.19 	(2) will advise the commissioner of any material changes to the information 
1.20 	submitted in the most recent application within ten days of the change;
1.21 	(3) will advise the commissioner in writing immediately of any bankruptcy petitions 
1.22 	filed against or by the applicant or licensee;
1.23 	(4) is financially solvent;
1.24 	(5) complies with federal and state tax laws;
2.1 	(6) complies with sections  345.31 to  345.60, the Minnesota unclaimed property 
2.2 	law; and 
2.3 	(7) is, or that a person in control of the license applicant is, at least 18 years of age;
2.4 	(b) information as to the mortgage lending, servicing, or brokering experience of the 
2.5 	applicant and persons in control of the applicant;
2.6 	(c) information as to criminal convictions, excluding traffic violations, of persons in 
2.7 	control of the license applicant;
2.8 	(d) whether a court of competent jurisdiction has found that the applicant or persons 
2.9 	in control of the applicant have engaged in conduct evidencing gross negligence, fraud, 
2.10 	misrepresentation, or deceit in performing an act for which a license is required under 
2.11 	this chapter;
2.12 	(e) whether the applicant or persons in control of the applicant have been the subject 
2.13 	of: an order of suspension or revocation, cease and desist order, or injunctive order, or 
2.14 	order barring involvement in an industry or profession issued by this or another state or 
2.15 	federal regulatory agency or by the Secretary of Housing and Urban Development within 
2.16 	the ten-year period immediately preceding submission of the application; and
2.17 	(f) other information required by the commissioner.

2.18 	EFFECTIVE DATE. This section is effective August 1, 2006.