HF 1055

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; requiring registration of 
  1.3             certain employees of residential mortgage originators; 
  1.4             amending Minnesota Statutes 2002, section 58.02, by 
  1.5             adding a subdivision; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 58. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 58.02, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 10a.  [INDIVIDUAL RESIDENTIAL MORTGAGE ORIGINATOR.] 
  1.11  "Individual residential mortgage originator" means a natural 
  1.12  person who engages in making or brokering a residential mortgage 
  1.13  loan as an employee of a residential mortgage originator 
  1.14  licensed under this chapter. 
  1.15     Sec. 2.  [58.18] [REGISTRATION OF INDIVIDUAL RESIDENTIAL 
  1.16  MORTGAGE ORIGINATORS.] 
  1.17     Subdivision 1.  [REGISTRATION REQUIREMENT.] A residential 
  1.18  mortgage originator that employs an individual residential 
  1.19  mortgage originator to engage in making or brokering a 
  1.20  residential mortgage loan in this state must register that 
  1.21  individual as required by this section. 
  1.22     Subd. 2.  [FORM OF REGISTRATION.] To register an individual 
  1.23  registered mortgage originator, a residential mortgage 
  1.24  originator that employs that individual must list that 
  1.25  individual's full name and business address on a form prescribed 
  1.26  by the commissioner.  The form must be signed by a person in 
  2.1   control of the residential mortgage originator, under penalty of 
  2.2   perjury, stating that, to the best of that person's knowledge, 
  2.3   each individual residential mortgage originator listed on the 
  2.4   form: 
  2.5      (1) is employed as an individual residential mortgage 
  2.6   originator by the residential mortgage originator submitting the 
  2.7   registration form; 
  2.8      (2) has completed at least 30 hours of continuing education 
  2.9   under subdivision 3, within the past 24 months, including at 
  2.10  least 3.75 hours of instruction each in the areas of: 
  2.11     (i) ethics; 
  2.12     (ii) Minnesota mortgage law; and 
  2.13     (iii) Minnesota or federal laws relating to fair housing or 
  2.14  other consumer protection provisions relating to mortgage 
  2.15  lending; and 
  2.16     (3) has been the subject of a criminal background check 
  2.17  obtained by the licensee from the Minnesota bureau of criminal 
  2.18  apprehension within the 60 days immediately preceding the 
  2.19  individual's initial registration, indicating that the 
  2.20  individual has not been convicted of a felony or has been 
  2.21  convicted of a felony, as indicated on the registration form by 
  2.22  specifying the offense, the date of conviction, and the court. 
  2.23     Subd. 3.  [CONTINUING EDUCATION.] (a) Continuing education 
  2.24  used for purposes of subdivision 2 must be instruction that is 
  2.25  relevant and useful in connection with residential mortgage 
  2.26  origination.  
  2.27     (b) An instructor of an approved course is eligible for 
  2.28  continuing education credit for purposes of this section equal 
  2.29  to 1.5 hours for each hour of instruction provided by the 
  2.30  instructor. 
  2.31     Subd. 4.  [CRIMINAL BACKGROUND DISQUALIFICATION.] If a 
  2.32  registration form indicates that a prospective individual 
  2.33  residential mortgage originator has been convicted of a felony 
  2.34  involving conduct by the prospective registrant that evidenced 
  2.35  fraud, misrepresentation, or theft in a financial transaction, 
  2.36  the registration is invalid.  
  3.1      Subd. 5.  [TIMING OF INITIAL REGISTRATION AND RENEWAL.] (a) 
  3.2   A registration form under this section must be submitted with 
  3.3   the residential mortgage originator's license renewal 
  3.4   application for license renewals effective on August 1 of each 
  3.5   odd-numbered year. 
  3.6      (b) An applicant for a new residential mortgage originator 
  3.7   license must submit the registration form with the application. 
  3.8      (c) On or before August 1, 2004, a residential mortgage 
  3.9   originator must submit to the commissioner a registration form 
  3.10  for a one-year interim registration under this section, which 
  3.11  will be effective from August 1, 2004, to July 31, 2005.  The 
  3.12  continuing education requirement for this interim registration 
  3.13  is at least 15 hours of instruction approved under subdivision 
  3.14  3, including at least 1.75 hours of instruction in each of the 
  3.15  three specific subject areas required under subdivision 2. 
  3.16     (d) A residential mortgage originator that begins business 
  3.17  after August 1, 2004, must comply with paragraph (c) no later 
  3.18  than the residential mortgage originator's initial licensure 
  3.19  under this chapter. 
  3.20     Subd. 6.  [AVAILABILITY TO THE PUBLIC.] (a) A residential 
  3.21  mortgage originator must post its current list of registered 
  3.22  individual residential mortgage originators in each of its 
  3.23  offices or other locations at which it regularly originates 
  3.24  residential mortgage loans in this state. 
  3.25     (b) A copy of the list must also be available upon request 
  3.26  of any person. 
  3.27     (c) The list made available under this subdivision must be 
  3.28  updated as required under subdivision 7. 
  3.29     Subd. 7.  [UPDATING REQUIRED.] (a) A residential mortgage 
  3.30  originator must update its list of registered individual 
  3.31  residential mortgage originators no later than 30 days after: 
  3.32     (1) the residential mortgage originator newly employs an 
  3.33  individual residential mortgage originator; 
  3.34     (2) the employment of an individual residential mortgage 
  3.35  originator by the residential mortgage originator terminates; or 
  3.36     (3) the residential mortgage originator learns of a felony 
  4.1   conviction that disqualifies the individual's eligibility for 
  4.2   registration under subdivision 4. 
  4.3      (b) The residential mortgage originator must submit an 
  4.4   updated registration to the commissioner in connection with the 
  4.5   next renewal of the residential mortgage originator's license. 
  4.6      (c) Upon an updating of a list under paragraph (a), the 
  4.7   residential mortgage originator must provide the updated list as 
  4.8   required under subdivision 6. 
  4.9      Subd. 8.  [FEES.] No fee is charged for registration 
  4.10  required under this section. 
  4.11     Subd. 9.  [EXEMPTIONS.] This section applies only to 
  4.12  residential mortgage originators required to be licensed under 
  4.13  this chapter. 
  4.14     Sec. 3.  [EFFECTIVE DATE.] 
  4.15     Sections 1 and 2 are effective August 1, 2004.