1.1 	A bill for an act
1.2 	relating to residential mortgage lending; modifying licensing and education 
1.3 	requirements; prohibiting predatory lending practices; providing examination 
1.4 	powers to the commissioner; prescribing a criminal penalty;amending Minnesota 
1.5 	Statutes 2006, sections 58.04, subdivisions 1, 2; 58.05; 58.06, subdivision 2, 
1.6 	by adding a subdivision; 58.08, subdivision 3; 58.10, subdivision 1; 58.13, 
1.7 	subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 58; 
1.8 	609; repealing Minnesota Statutes 2006, section 58.08, subdivision 1.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:
1.11 		Subdivision 1.Residential mortgage originator licensing requirements. (a) 
1.12 	Beginning August 1, 1999, No person shall act as a residential mortgage originator, or 
1.13 	make residential mortgage loans without first obtaining a license from the commissioner 
1.14 	according to the licensing procedures provided in this chapter.
1.15 	(b) A licensee must be either a partnership, limited liability partnership, association, 
1.16 	limited liability company, corporation, or other form of business organization, and must 
1.17 	have and maintain at all times one of the following: (1) approval as a mortgagee by 
1.18 	either the federal Department of Housing and Urban Development or the Federal National 
1.19 	Mortgage Association; (2) a minimum net worth, net of intangibles, of at least $250,000; 
1.20 	or (3) a surety bond or irrevocable letter of credit in the amount of $50,000. Net worth, 
1.21 	net of intangibles, must be calculated in accordance with generally accepted accounting 
1.22 	principles.
1.23 	(c) The following persons are exempt from the residential mortgage originator 
1.24 	licensing requirements:
1.25 	(1) an employee of one mortgage originator licensee or one person holding a 
1.26 	certificate of exemption;
2.1 	(2) a person licensed as a real estate broker under chapter 82 who is not licensed to 
2.2 	another real estate broker;
2.3 	(3) an individual real estate licensee who is licensed to a real estate broker as 
2.4 	described in clause (2) if:
2.5 	(i) the individual licensee acts only under the name, authority, and supervision of the 
2.6 	broker to whom the licensee is licensed;
2.7 	(ii) the broker to whom the licensee is licensed obtains a certificate of exemption 
2.8 	according to section 58.05, subdivision 2; 
2.9 	(iii) the broker does not collect an advance fee for its residential mortgage-related 
2.10 	activities; and
2.11 	(iv) the residential mortgage origination activities are incidental to the real estate 
2.12 	licensee's primary activities as a real estate broker or salesperson;
2.13 	(4) an individual licensed as a property/casualty or life/health insurance agent under 
2.14 	chapter 60K if:
2.15 	(i) the insurance agent acts on behalf of only one residential mortgage originator, 
2.16 	which is in compliance with chapter 58;
2.17 	(ii) the insurance agent has entered into a written contract with the mortgage 
2.18 	originator under the terms of which the mortgage originator agrees to accept responsibility 
2.19 	for the insurance agent's residential mortgage-related activities;
2.20 	(iii) the insurance agent obtains a certificate of exemption under section 58.05, 
2.21 	subdivision 2; and 
2.22 	(iv) the insurance agent does not collect an advance fee for the insurance agent's 
2.23 	residential mortgage-related activities;
2.24 	(5)(1) a person who is not in the business of making residential mortgage loans and 
2.25 	who makes no more than three such loans, with its own funds, during any 12-month period;
2.26 	(6)(2) a financial institution as defined in section 58.02, subdivision 10; 
2.27 	(7)(3) an agency of the federal government, or of a state or municipal government;
2.28 	(8)(4) an employee or employer pension plan making loans only to its participants;
2.29 	(9)(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 
2.30 	of a specific order issued by a court of competent jurisdiction; or
2.31 	(10)(6) a person exempted by order of the commissioner.

2.32 	Sec. 2. Minnesota Statutes 2006, section 58.04, subdivision 2, is amended to read:
2.33 		Subd. 2.Residential mortgage servicer licensing requirements. (a) Beginning 
2.34 	August 1, 1999, No person shall engage in activities or practices that fall within the 
2.35 	definition of "servicing a residential mortgage loan" under section 58.02, subdivision 
3.1 	22, without first obtaining a license from the commissioner according to the licensing 
3.2 	procedures provided in this chapter. 
3.3 	(b) The following persons are exempt from the residential mortgage servicer 
3.4 	licensing requirements:
3.5 	(1) a person licensed as a residential mortgage originator;
3.6 	(2) an employee of one licensee or one person holding a certificate of exemption 
3.7 	based on an exemption under this subdivision;
3.8 	(3)(2) a person servicing loans made with its own funds, if no more than three such 
3.9 	loans are made in any 12-month period;
3.10 	(4)(3) a financial institution as defined in section 58.02, subdivision 10; 
3.11 	(5)(4) an agency of the federal government, or of a state or municipal government;
3.12 	(6)(5) an employee or employer pension plan making loans only to its participants;
3.13 	(7)(6) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 
3.14 	of a specific order issued by a court of competent jurisdiction; or
3.15 	(8)(7) a person exempted by order of the commissioner.

3.16 	Sec. 3. Minnesota Statutes 2006, section 58.05, is amended to read:
3.17 	58.05 EXEMPTIONS FROM LICENSE.
3.18 		Subdivision 1.Exempt person. An exempt person as defined by section 58.04, 
3.19 	subdivision 1, paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the 
3.20 	licensing requirements of this chapter, but is subject to all other provisions of this chapter. 
3.21 		Subd. 3.Certificate of exemption. A person must obtain a certificate of exemption 
3.22 	from the commissioner to qualify as an exempt person under section 58.04, subdivision 
3.23 	1, paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under 
3.24 	clause (4), a financial institution under clause (6) (2), or by order of the commissioner 
3.25 	under clause (10) (6); or under section 58.04, subdivision 2, paragraph (b), as a financial 
3.26 	institution under clause (4) (3), or by order of the commissioner under clause (8) (7). 

3.27 	Sec. 4. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:
3.28 		Subd. 2.Application contents. (a) The application must contain the name and 
3.29 	complete business address or addresses of the license applicant. If The license applicant is
3.30 	must be a partnership, limited liability partnership, association, limited liability company, 
3.31 	corporation, or other form of business organization, and the application must contain the 
3.32 	names and complete business addresses of each partner, member, director, and principal 
3.33 	officer. The application must also include a description of the activities of the license 
3.34 	applicant, in the detail and for the periods the commissioner may require. 
4.1 	(b) An applicant must submit one of the following:
4.2 	(1) evidence which shows, to the commissioner's satisfaction, that either the federal 
4.3 	Department of Housing and Urban Development or the Federal National Mortgage 
4.4 	Association has approved the applicant as a mortgagee;
4.5 	(2) a surety bond or irrevocable letter of credit in the amount of not less than 
4.6 	$50,000 in a form approved by the commissioner, issued by an insurance company or bank 
4.7 	authorized to do so in this state. The bond or irrevocable letter of credit must be available 
4.8 	for the recovery of expenses, fines, and fees levied by the commissioner under this chapter 
4.9 	and for losses incurred by borrowers. The bond or letter of credit must be submitted with 
4.10 	the license application, and evidence of continued coverage must be submitted with each 
4.11 	renewal. Any change in the bond or letter of credit must be submitted for approval by the 
4.12 	commissioner within ten days of its execution; or
4.13 	(3) a copy of the applicant's most recent audited financial statement, including 
4.14 	balance sheet, statement of income or loss, statements of changes in shareholder equity, 
4.15 	and statement of changes in financial position. Financial statements must be as of a date 
4.16 	within 12 months of the date of application.
4.17 	(c) The application must also include all of the following:
4.18 	(a)(1) an affirmation under oath that the applicant:
4.19 	(1) will maintain competent staff and adequate staffing levels, through direct 
4.20 	employees or otherwise, to meet the requirements of this chapter (i) is in compliance 
4.21 	with the requirements of section 58.125;
4.22 	(ii) will maintain a perpetual roster of individuals employed as mortgage residential 
4.23 	mortgage originators, including employees and independent contractors, which includes 
4.24 	the date that mandatory initial education was completed. In addition, the roster must 
4.25 	be made available to the commissioner on demand, within three business days of the 
4.26 	commissioner's request;
4.27 	(2)(iii) will advise the commissioner of any material changes to the information 
4.28 	submitted in the most recent application within ten days of the change;
4.29 	(3)(iv) will advise the commissioner in writing immediately of any bankruptcy 
4.30 	petitions filed against or by the applicant or licensee;
4.31 	(4) is financially solvent (v) will maintain at all times either a net worth, net of 
4.32 	intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the 
4.33 	amount of at least $50,000;
4.34 	(5)(vi) complies with federal and state tax laws; and
4.35 	(6)(vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property 
4.36 	law; and
5.1 	(7) is, or that a person in control of the license applicant is, at least 18 years of age;
5.2 	(b)(2) information as to the mortgage lending, servicing, or brokering experience 
5.3 	of the applicant and persons in control of the applicant;
5.4 	(c)(3) information as to criminal convictions, excluding traffic violations, of persons 
5.5 	in control of the license applicant;
5.6 	(d)(4) whether a court of competent jurisdiction has found that the applicant or 
5.7 	persons in control of the applicant have engaged in conduct evidencing gross negligence, 
5.8 	fraud, misrepresentation, or deceit in performing an act for which a license is required 
5.9 	under this chapter;
5.10 	(e)(5) whether the applicant or persons in control of the applicant have been the 
5.11 	subject of: an order of suspension or revocation, cease and desist order, or injunctive 
5.12 	order, or order barring involvement in an industry or profession issued by this or another 
5.13 	state or federal regulatory agency or by the Secretary of Housing and Urban Development 
5.14 	within the ten-year period immediately preceding submission of the application; and
5.15 	(f)(6) other information required by the commissioner.

5.16 	Sec. 5. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision to 
5.17 	read:
5.18 		Subd. 3.Waiver. The commissioner may, for good cause shown, waive any 
5.19 	requirement of this section with respect to any license application or to permit a license 
5.20 	applicant to submit substituted information in its license application in lieu of the 
5.21 	information required by this section.

5.22 	Sec. 6. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:
5.23 		Subd. 3.Exemption. Subdivisions 1 andSubdivision 2 dodoes not apply to 
5.24 	mortgage originators or mortgage servicers who are approved as seller/servicers by the 
5.25 	Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

5.26 	Sec. 7. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:
5.27 		Subdivision 1.Amounts. The following fees must be paid to the commissioner:
5.28 	(1) for an initial residential mortgage originator license, $850 $2,550, $50 of which 
5.29 	is credited to the consumer education account in the special revenue fund;
5.30 	(2) for a renewal license, $450 $1,350, $50 of which is credited to the consumer 
5.31 	education account in the special revenue fund;
5.32 	(3) for an initial residential mortgage servicer's license, $1,000;
5.33 	(4) for a renewal license, $500; and
6.1 	(5) for a certificate of exemption, $100.

6.2 	Sec. 8. [58.115] EXAMINATIONS.
6.3 	The commissioner has under this chapter the same powers with respect to 
6.4 	examinations that the commissioner has under section 46.04, including the authority to 
6.5 	charge for the direct costs of the examination, including travel and per diem expenses.

6.6 	Sec. 9. [58.126] EDUCATION REQUIREMENT.
6.7 	No person shall serve as a residential mortgage originator before the completion 
6.8 	of 16 hours of educational training which has been approved by the commissioner, and 
6.9 	covering state and federal laws concerning residential mortgage lending.

6.10 	Sec. 10. Minnesota Statutes 2006, section 58.13, subdivision 1, is amended to read:
6.11 		Subdivision 1.Generally. No person acting as a residential mortgage originator 
6.12 	or servicer, including a person required to be licensed under this chapter, and no person 
6.13 	exempt from the licensing requirements of this chapter under section 58.04, shall: 
6.14 	(1) fail to maintain a trust account to hold trust funds received in connection with a 
6.15 	residential mortgage loan;
6.16 	(2) fail to deposit all trust funds into a trust account within three business days of 
6.17 	receipt; commingle trust funds with funds belonging to the licensee or exempt person; or 
6.18 	use trust account funds for any purpose other than that for which they are received;
6.19 	(3) unreasonably delay the processing of a residential mortgage loan application, 
6.20 	or the closing of a residential mortgage loan. For purposes of this clause, evidence of 
6.21 	unreasonable delay includes but is not limited to those factors identified in section 47.206, 
6.22 	subdivision 7, clause (d); 
6.23 	(4) fail to disburse funds according to its contractual or statutory obligations;
6.24 	(5) fail to perform in conformance with its written agreements with borrowers, 
6.25 	investors, other licensees, or exempt persons;
6.26 	(6) charge a fee for a product or service where the product or service is not actually 
6.27 	provided, or misrepresent the amount charged by or paid to a third party for a product 
6.28 	or service;
6.29 	(7) fail to comply with sections 345.31 to 345.60, the Minnesota unclaimed property 
6.30 	law; 
6.31 	(8) violate any provision of any other applicable state or federal law regulating 
6.32 	residential mortgage loans including, without limitation, sections 47.20 to 47.208; 
7.1 	(9) make or cause to be made, directly or indirectly, any false, deceptive, or 
7.2 	misleading statement or representation in connection with a residential loan transaction 
7.3 	including, without limitation, a false, deceptive, or misleading statement or representation 
7.4 	regarding the borrower's ability to qualify for any mortgage product;
7.5 	(10) conduct residential mortgage loan business under any name other than that 
7.6 	under which the license or certificate of exemption was issued;
7.7 	(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for 
7.8 	the purpose of influencing the independent judgment of the appraiser with respect to the 
7.9 	value of real estate that is to be covered by a residential mortgage or is being offered as 
7.10 	security according to an application for a residential mortgage loan;
7.11 	(12) issue any document indicating conditional qualification or conditional approval 
7.12 	for a residential mortgage loan, unless the document also clearly indicates that final 
7.13 	qualification or approval is not guaranteed, and may be subject to additional review;
7.14 	(13) make or assist in making any residential mortgage loan with the intent that the 
7.15 	loan will not be repaid and that the residential mortgage originator will obtain title to 
7.16 	the property through foreclosure;
7.17 	(14) provide or offer to provide for a borrower, any brokering or lending services 
7.18 	under an arrangement with a person other than a licensee or exempt person, provided that 
7.19 	a person may rely upon a written representation by the residential mortgage originator that 
7.20 	it is in compliance with the licensing requirements of this chapter;
7.21 	(15) claim to represent a licensee or exempt person, unless the person is an employee 
7.22 	of the licensee or exempt person or unless the person has entered into a written agency 
7.23 	agreement with the licensee or exempt person;
7.24 	(16) fail to comply with the record keeping and notification requirements identified 
7.25 	in section 58.14 or fail to abide by the affirmations made on the application for licensure; 
7.26 	(17) represent that the licensee or exempt person is acting as the borrower's agent 
7.27 	after providing the nonagency disclosure required by section 58.15, unless the disclosure 
7.28 	is retracted and the licensee or exempt person complies with all of the requirements of 
7.29 	section 58.16; 
7.30 	(18) make, provide, or arrange for a residential mortgage loan that is of a lower 
7.31 	investment grade if the borrower's credit score or, if the originator does not utilize credit 
7.32 	scoring or if a credit score is unavailable, then comparable underwriting data, indicates 
7.33 	that the borrower may qualify for a residential mortgage loan, available from or through 
7.34 	the originator, that is of a higher investment grade, unless the borrower is informed that 
7.35 	the borrower may qualify for a higher investment grade loan with a lower interest rate 
8.1 	and/or lower discount points, and consents in writing to receipt of the lower investment 
8.2 	grade loan.
8.3 	For purposes of this section, "investment grade" refers to a system of categorizing 
8.4 	residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or 
8.5 	"subprime"; (ii) commonly designated by an alphabetical character with "A" being the 
8.6 	highest investment grade; and (iii) are distinguished by interest rate or discount points 
8.7 	or both charged to the borrower, which vary according to the degree of perceived risk 
8.8 	of default based on factors such as the borrower's credit, including credit score and 
8.9 	credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior 
8.10 	bankruptcy or foreclosure;
8.11 	(19) make, publish, disseminate, circulate, place before the public, or cause to be 
8.12 	made, directly or indirectly, any advertisement or marketing materials of any type, or any 
8.13 	statement or representation relating to the business of residential mortgage loans that is 
8.14 	false, deceptive, or misleading;
8.15 	(20) advertise loan types or terms that are not available from or through the licensee 
8.16 	or exempt person on the date advertised, or on the date specified in the advertisement. 
8.17 	For purposes of this clause, advertisement includes, but is not limited to, a list of sample 
8.18 	mortgage terms, including interest rates, discount points, and closing costs provided by 
8.19 	licensees or exempt persons to a print or electronic medium that presents the information 
8.20 	to the public;
8.21 	(21) use or employ phrases, pictures, return addresses, geographic designations, or 
8.22 	other means that create the impression, directly or indirectly, that a licensee or other 
8.23 	person is a governmental agency, or is associated with, sponsored by, or in any manner 
8.24 	connected to, related to, or endorsed by a governmental agency, if that is not the case; or
8.25 	(22) violate section 82.49, relating to table funding;
8.26 	(23) make, provide, or arrange for a residential mortgage loan without verifying 
8.27 	the borrower's reasonable ability to pay the principal and interest on the loan, and pay 
8.28 	real estate taxes and home insurance. For loans in which the interest rate may vary, the 
8.29 	reasonable ability to pay must be determined based on the maximum monthly payment 
8.30 	that could be due during the first five years of the loan term, which amount must be 
8.31 	calculated with reference to the maximum interest rate allowable under the loan assuming 
8.32 	no default by the borrower and assuming a fully indexed rate and a repayment schedule 
8.33 	which achieves full amortization over the life of the loan. For all residential mortgage 
8.34 	loans, the borrower's income and financial resources must be verified by tax returns, 
8.35 	payroll receipts, bank records, or other similarly reliable documents. A statement by 
8.36 	the borrower to the residential mortgage originator or exempt person of the borrower's 
9.1 	income and resources is not sufficient to establish the existence of the income or resources 
9.2 	when verifying the reasonable ability to pay;
9.3 	(24) whenever the residential mortgage originator informs a borrower, orally or in 
9.4 	writing, of the anticipated or actual periodic payment amount for a first-lien residential 
9.5 	mortgage loan, the residential mortgage originator must inform the borrower that an 
9.6 	additional amount will be due for taxes and insurance and, if known, disclose to the 
9.7 	borrower the amount of the anticipated or actual periodic escrow payments. A residential 
9.8 	mortgage originator need not make this disclosure concerning a refinancing loan if the 
9.9 	residential mortgage originator knows that the borrower's existing loan that is anticipated 
9.10 	to be refinanced does not have an escrow account. Compliance with federal laws requiring 
9.11 	disclosure of a periodic payment amount constitutes compliance with this paragraph but 
9.12 	only for purposes of the particular disclosure required under federal law;
9.13 	(25) make, provide, or arrange for a residential mortgage loan, other than a reverse 
9.14 	mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance 
9.15 	with any repayment option offered pursuant to the terms of the loan will result in negative 
9.16 	amortization during any six-month period; or
9.17 	(26) make, provide, or arrange for a residential mortgage loan all or a portion of 
9.18 	the proceeds of which are used to fully or partially pay off a "special mortgage" unless 
9.19 	the borrower has obtained a written certification from a counselor with a third-party 
9.20 	nonprofit or governmental organization approved by the United States Department of 
9.21 	Housing and Urban Development or the commissioner that the borrower has received 
9.22 	counseling on the advisability of the loan transaction. The commissioner shall maintain a 
9.23 	list of approved counseling programs. For purposes of this section, "special mortgage" 
9.24 	means a residential mortgage loan originated, subsidized, or guaranteed by or through 
9.25 	a state, tribal, or local government, or nonprofit organization, that bears one or more of 
9.26 	the following nonstandard payment terms which substantially benefit the borrower: (i) 
9.27 	payments vary with income; (ii) payments of principal or interest are not required or 
9.28 	can be deferred under specified conditions; (iii) principal or interest is forgivable under 
9.29 	specified conditions; or (iv) where no interest or an annual interest rate of two percent or 
9.30 	less is charged in connection with the loan.

9.31 	Sec. 11. [609.614] RESIDENTIAL MORTGAGE FRAUD.
9.32 		Subdivision 1.Residential mortgage fraud prohibited. Whoever with the intent to 
9.33 	defraud for the purpose of depriving another of property or for pecuniary gain, commits, 
9.34 	or permits its employees or its agents to commit, any of the following acts, is guilty of 
9.35 	residential mortgage fraud and may be sentenced as provided in subdivision 2:
10.1 	(1) knowingly makes any deliberate misstatement, misrepresentation, or omission 
10.2 	during the mortgage lending process with the intention that it be relied on by a mortgage 
10.3 	lender, borrower, or any other party to the mortgage lending process;
10.4 	(2) knowingly uses or facilitates the use of any deliberate misstatement, 
10.5 	misrepresentation, or omission, knowing the same to contain a misstatement, 
10.6 	misrepresentation, or omission, during the mortgage lending process with the intention 
10.7 	that it be relied on by a mortgage lender, borrower, or any other party to the mortgage 
10.8 	lending process;
10.9 	(3) receives any proceeds or any other funds in connection with a residential 
10.10 	mortgage closing that such person knew resulted from a violation of clause (1) or (2);
10.11 	(4) conspires to violate any of the provisions of clause (1), (2), or (3); or
10.12 	(5) files or causes to be filed with the official registrar of deeds of any county 
10.13 	of this state any document such person knows to contain a deliberate misstatement, 
10.14 	misrepresentation, or omission.
10.15 	An offense of residential mortgage fraud must not be predicated solely upon information 
10.16 	lawfully disclosed under federal disclosure laws, regulations, and interpretations related 
10.17 	to the mortgage lending process.
10.18 		Subd. 2.Sentence. Whoever violates this provision may be sentenced as provided 
10.19 	in section 609.52, subdivision 3, based on the greater of (1) the value of property, services, 
10.20 	or other benefit wrongfully obtained or attempted to obtain, or (2) the aggregate economic 
10.21 	loss suffered by any person as a result of the violation. A person convicted of a violation 
10.22 	of this section must be ordered to pay restitution to persons aggrieved by the violation. 
10.23 	Restitution must be ordered in addition to a fine or imprisonment but not in lieu of a 
10.24 	fine or imprisonment.
10.25 		Subd. 3.Definitions. (a) "Mortgage lending process" means the process through 
10.26 	which a person seeks or obtains a residential mortgage loan including, but not limited 
10.27 	to, solicitation, application, or origination, negotiation of terms, third-party provider 
10.28 	services, underwriting, signing and closing, and funding of the loan. Documents involved 
10.29 	in the mortgage lending process include, but are not limited to, uniform residential loan 
10.30 	applications or other loan applications; appraisal reports; HUD-1 settlement statements; 
10.31 	supporting personal documentation for loan applications such as W-2 forms, verifications 
10.32 	of income and employment, bank statements, tax returns, and payroll stubs; and any 
10.33 	required disclosures.
10.34 	(b) "Pattern of residential mortgage fraud" means one or more misstatements, 
10.35 	misrepresentations, or omissions made during the mortgage lending process that involve 
10.36 	two or more residential properties, which have the same or similar intents, results, 
11.1 	accomplices, victims, or methods of commission or otherwise are interrelated by 
11.2 	distinguishing characteristics.
11.3 	(c) "Person" means a natural person, corporation, company, limited liability 
11.4 	company, partnership, trustee, association, or any other entity.
11.5 	(d) "Residential mortgage loan" means a loan or agreement to extend credit made to 
11.6 	a person, which loan is secured by a deed to secure debt, security deed, mortgage, security 
11.7 	interest, deed of trust, or other document representing a security interest or lien upon any 
11.8 	interest in one-to-four family residential property located in Minnesota including the 
11.9 	renewal or refinancing of any such loan.

11.10 	Sec. 12. LICENSE RENEWAL EXTENSION.
 11.11 	The July 31, 2007, renewal date for mortgage originators is extended to October 30, 
11.12 	2007, because of the changes to the licensing requirements made by this act.

11.13 	Sec. 13.  REPEALER.
 11.14 	Minnesota Statutes 2006, section 58.08, subdivision 1, is repealed.