1.1 	A bill for an act
1.2 	relating to financial institutions; adding an exemption to licensing requirements 
1.3 	for residential mortgage originators; providing for conformity with federal truth 
1.4 	in lending requirements;amending Minnesota Statutes 2018, section 58.04, 
1.5 	subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2018, section 58.04, subdivision 1, is amended to read:
1.8 		Subdivision 1.Residential mortgage originator licensing requirements. (a) No person 
1.9 	shall act as a residential mortgage originator, or make residential mortgage loans without 
1.10 	first obtaining a license from the commissioner according to the licensing procedures 
1.11 	provided in this chapter.
1.12 	(b) A licensee must be either a partnership, limited liability partnership, association, 
1.13 	limited liability company, corporation, or other form of business organization, and must 
1.14 	have and maintain a surety bond in the amounts prescribed under section 58.08.
1.15 	(c) The following persons are exempt from the residential mortgage originator licensing 
1.16 	requirements:
1.17 	(1) a person who is not in the business of making residential mortgage loans and who 
1.18 	makes no more than three such loans, with its own funds, during any 12-month period;
1.19 	(2) a financial institution as defined in section 58.02, subdivision 10;
1.20 	(3) an agency of the federal government, or of a state or municipal government;
1.21 	(4) an employee or employer pension plan making loans only to its participants;
2.1 	(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a 
2.2 	specific order issued by a court of competent jurisdiction; or
2.3 	(6) a person exempted by order of the commissioner.; or
2.4 	(7) a manufactured home dealer, as defined in section 327B.01, subdivision 7 or 11b, 
2.5 	or a manufactured home salesperson, as defined in section 327B.01, subdivision 19, that:
2.6 	(i) performs only clerical or support duties in connection with assisting a consumer in 
2.7 	filling out a residential mortgage loan application but does not in any way offer or negotiate 
2.8 	loan terms, or hold themselves out as a housing counselor;
2.9 	(ii) does not receive any direct or indirect compensation or gain from any individual or 
2.10 	company for assisting consumers with a residential mortgage loan application, in excess of 
2.11 	the customary salary or commission from the employer in connection with the sales 
2.12 	transaction; and
2.13 	(iii) discloses to the borrower in writing:
2.14 	(A) any corporate affiliation with a lender; and
2.15 	(B) if an affiliation with a corporate lender exists, that the lender cannot guarantee the 
2.16 	lowest or best terms available and the consumer has the right to choose their lender.