HF 2418

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2017 09:07am

A bill for an act
relating to residential mortgage originators, residential mortgage servicers, and
mortgage loan originators; allowing expungement of certain violations; instituting
application process times; amending Minnesota Statutes 2016, sections 58.06, by
adding a subdivision; 58.11, by adding a subdivision; 58.12, by adding a
subdivision; 58A.04, by adding a subdivision; 58A.12.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 58.06, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Application; process time. new text end

new text begin The commissioner must process an application
within two weeks of receipt.
new text end

Sec. 2.

Minnesota Statutes 2016, section 58.11, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Renewal application; process time. new text end

new text begin The commissioner must process a renewal
application within two weeks of receipt.
new text end

Sec. 3.

Minnesota Statutes 2016, section 58.12, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Expungement of certain violations. new text end

new text begin (a) The commissioner must expunge from
all official records all recordation relating to a residential mortgage originator or servicer
that has received, due to a violation under this section, a censure or had a civil penalty
imposed against them when two years have passed from the date the censure or civil penalty
was imposed.
new text end

new text begin (b) The commissioner shall not expunge records under paragraph (a) if the residential
mortgage originator or servicer:
new text end

new text begin (1) has received more than one censure or civil penalty during a two-year period; or
new text end

new text begin (2) has had a disciplinary action entered against the residential mortgage originator or
servicer while licensed under this chapter, other than censure or civil penalty.
new text end

new text begin (c) A residential mortgage originator or servicer that received an expungement under
this subdivision shall not be held under any provision of law to be guilty of perjury or
otherwise giving a false statement by reason of failure to acknowledge or disclose a
disciplinary action or violation under this chapter.
new text end

Sec. 4.

Minnesota Statutes 2016, section 58A.04, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Application and renewal application; process time. new text end

new text begin The commissioner must
process an application or renewal application within two weeks of receipt.
new text end

Sec. 5.

Minnesota Statutes 2016, section 58A.12, is amended to read:

58A.12 ENFORCEMENT AUTHORITIES, VIOLATIONS, AND PENALTIES.

new text begin Subdivision 1. new text end

new text begin Powers of commissioner. new text end

(a) In order to ensure the effective supervision
and enforcement of this chapter, the commissioner may, pursuant to chapter 14:

(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of this
chapter, rules issued under this chapter, or order or directive entered under this chapter;

(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant or
licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or withholds
information or makes a material misstatement in an application for a license or renewal of
a license;

(3) order restitution against persons subject to this chapter for violations of this chapter;

(4) impose fines on persons subject to this chapter pursuant to paragraphs (b) to (d); and

(5) issue orders or directives under this chapter as follows:

(i) order or direct persons subject to this chapter to cease and desist from conducting
business, including immediate temporary orders to cease and desist;

(ii) order or direct persons subject to this chapter to cease any harmful activities or
violations of this chapter, including immediate temporary orders to cease and desist;

(iii) enter immediate temporary orders to cease business under a license if the
commissioner determines that the license was erroneously granted or the licensee is currently
in violation of this chapter; and

(iv) order or direct other affirmative action the commissioner considers necessary.

(b) The commissioner may impose a civil penalty on a mortgage loan originator or
person subject to this chapter if the commissioner finds, on the record after notice and
opportunity for hearing, that the mortgage loan originator or person subject to this chapter
has violated or failed to comply with any requirement of this chapter or any rule prescribed
by the commissioner under this chapter or order issued under authority of this chapter.

(c) The maximum amount of penalty for each act or omission described in paragraph
(b) is $25,000.

(d) Each violation or failure to comply with any directive or order of the commissioner
is a separate and distinct violation or failure.

new text begin Subd. 2. new text end

new text begin Expungement of certain violations. new text end

new text begin (a) The commissioner must expunge from
all official records all recordation relating to any mortgage loan originator that has received,
due to a violation under this section, an order or directive under subdivision 1, paragraph
(a), clause (5), or a civil penalty or fine, when two years have passed from the date the order
or directive, or civil penalty or fine, was imposed.
new text end

new text begin (b) The commissioner shall not expunge records under paragraph (a) if the mortgage
loan originator:
new text end

new text begin (1) has received more than one order or directive, or civil penalty or fine, during a
two-year period; or
new text end

new text begin (2) has had a disciplinary action entered against the mortgage loan originator while
licensed by this chapter, other than an order or directive, or civil penalty or fine.
new text end

new text begin (c) A mortgage loan originator who received an expungement under this subdivision
shall not be held under any provision of law to be guilty of perjury or otherwise giving a
false statement by reason of failure to acknowledge or disclose a disciplinary action or
violation under this chapter.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1, 2, and 4 are effective August 1, 2017, and apply to applications or renewal
applications submitted on or after that date. Sections 3 and 5 are effective August 1, 2017,
and apply to violations occurring on or after August 1, 2012.
new text end