HF 2600

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/15/2010 01:13pm

A bill for an act
relating to financial institutions; providing for the licensing and regulation
of an individual engaged in the business of a mortgage loan origination or
the mortgage loan business; providing certain conforming and transitional
provisions; appropriating money; amending Minnesota Statutes 2008, sections
58.04, subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision
1; 58.11; Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2;
proposing coding for new law as Minnesota Statutes, chapter 58A; repealing
Minnesota Statutes 2009 Supplement, section 58.126.

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

ARTICLE 1

MINNESOTA S.A.F.E. MORTGAGE LICENSING ACT OF 2010

Section 1.

new text begin [58A.01] TITLE.
new text end

new text begin This chapter may be cited as the "Minnesota Secure and Fair Enforcement for
Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E. Mortgage Licensing Act of
2010."
new text end

Sec. 2.

new text begin [58A.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the definitions in
subdivisions 2 to 15 have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Depository institution. new text end

new text begin "Depository institution" has the meaning given in
United States Code, title 12, section 1813, and includes a credit union.
new text end

new text begin Subd. 3. new text end

new text begin Federal banking agencies. new text end

new text begin "Federal banking agencies" means the Board
of Governors of the Federal Reserve System, the comptroller of the currency, the director
of the Office of Thrift Supervision, the National Credit Union Administration, and the
Federal Deposit Insurance Corporation.
new text end

new text begin Subd. 4. new text end

new text begin Immediate family member. new text end

new text begin "Immediate family member" means a spouse,
child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren,
stepsiblings, and adoptive relationships.
new text end

new text begin Subd. 5. new text end

new text begin Individual. new text end

new text begin "Individual" means a natural person.
new text end

new text begin Subd. 6. new text end

new text begin Loan processor or underwriter. new text end

new text begin "Loan processor or underwriter" means
an individual who performs clerical or support duties as an employee at the direction
of and subject to the supervision and instruction of a person licensed or exempt from
licensing under chapter 58. For purposes of this subdivision, the term "clerical or support
duties" may include after the receipt of an application:
new text end

new text begin (1) the receipt, collection, distribution, and analysis of information common for the
processing or underwriting of a residential mortgage loan; and
new text end

new text begin (2) communicating with a consumer to obtain the information necessary for the
processing or underwriting of a loan, to the extent that the communication does not include
offering or negotiating loan rates or terms, or counseling consumers about residential
mortgage loan rates or terms.
new text end

new text begin Subd. 7. new text end

new text begin Mortgage loan originator. new text end

new text begin "Mortgage loan originator":
new text end

new text begin (1) means an individual who for compensation or gain or in the expectation of
compensation or gain:
new text end

new text begin (i) takes a residential mortgage loan application; or
new text end

new text begin (ii) offers or negotiates terms of a residential mortgage loan;
new text end

new text begin (2) does not include an individual engaged solely as a loan processor or underwriter
except as otherwise provided in section 58A.03, subdivision 3;
new text end

new text begin (3) does not include a person or entity that only performs real estate brokerage
activities and is licensed or registered according to Minnesota law, unless the person or
entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or
by an agent of the lender, mortgage broker, or other mortgage loan originator; and
new text end

new text begin (4) does not include a person or entity solely involved in extensions of credit relating
to timeshare plans, as that term is defined in United States Code, title 11, section 101(53D).
new text end

new text begin Subd. 8. new text end

new text begin Nationwide Mortgage Licensing System and Registry. new text end

new text begin "Nationwide
Mortgage Licensing System and Registry" means a mortgage licensing system developed
and maintained by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators for the licensing and registration of
licensed mortgage loan originators.
new text end

new text begin Subd. 9. new text end

new text begin Nontraditional mortgage product. new text end

new text begin "Nontraditional mortgage product"
means a mortgage product other than a 30-year fixed rate mortgage loan.
new text end

new text begin Subd. 10. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, corporation, company, limited
liability company, partnership, or association.
new text end

new text begin Subd. 11. new text end

new text begin Real estate brokerage activity. new text end

new text begin "Real estate brokerage activity" means
an activity that involves offering or providing real estate brokerage services to the public,
including:
new text end

new text begin (1) acting as a real estate agent or real estate broker for a buyer, seller, lessor,
or lessee of real property;
new text end

new text begin (2) bringing together parties interested in the sale, purchase, lease, rental, or
exchange of real property;
new text end

new text begin (3) negotiating, on behalf of a party, a portion of a contract relating to the sale,
purchase, lease, rental, or exchange of real property other than in connection with
providing financing with respect to the transaction;
new text end

new text begin (4) engaging in an activity for which a person engaged in the activity is required to
be registered or licensed as a real estate agent or real estate broker under any applicable
law; and
new text end

new text begin (5) offering to engage in any activity, or act in any capacity, described in clause
(1), (2), (3), or (4).
new text end

new text begin Subd. 12. new text end

new text begin Registered mortgage loan originator. new text end

new text begin "Registered mortgage loan
originator" means an individual who:
new text end

new text begin (1) meets the definition of mortgage loan originator and is an employee of:
new text end

new text begin (i) a depository institution;
new text end

new text begin (ii) a subsidiary that is owned and controlled by a depository institution and
regulated by a federal banking agency; or
new text end

new text begin (iii) an institution regulated by the Farm Credit Administration; and
new text end

new text begin (2) is registered with, and maintains a unique identifier through, the Nationwide
Mortgage Licensing System and Registry.
new text end

new text begin Subd. 13. new text end

new text begin Residential mortgage loan. new text end

new text begin "Residential mortgage loan" means a loan
primarily for personal, family, or household use that is secured by a mortgage, deed of
trust, or other equivalent consensual security interest on a dwelling, as defined in United
States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is
constructed or intended to be constructed.
new text end

new text begin Subd. 14. new text end

new text begin Residential real estate. new text end

new text begin "Residential real estate" means real property
located in Minnesota, upon which a dwelling is constructed or is intended to be
constructed.
new text end

new text begin Subd. 15. new text end

new text begin Unique identifier. new text end

new text begin "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage Licensing System and
Registry.
new text end

Sec. 3.

new text begin [58A.03] LICENSE AND REGISTRATION REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin An individual, unless specifically exempted from this
chapter under subdivision 2, shall not engage in the business of a mortgage loan originator
with respect to a dwelling located in this state without first obtaining and maintaining a
license under this chapter. An individual may not engage in the mortgage loan business
unless the individual is employed and supervised by an entity which is either licensed
or exempt from licensing under chapter 58. A licensed mortgage loan originator must
register with and maintain a valid unique identifier issued by the Nationwide Mortgage
Licensing System and Registry.
new text end

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

new text begin The following are exempt from this chapter:
new text end

new text begin (1) a registered mortgage loan originator, when acting for an entity described in
section 58A.02, subdivision 12, clause (1);
new text end

new text begin (2) an individual who offers or negotiates terms of a residential mortgage loan with
or on behalf of an immediate family member of the individual;
new text end

new text begin (3) an individual who offers or negotiates terms of a residential mortgage loan
secured by a dwelling that served as the individual's residence;
new text end

new text begin (4) a licensed attorney who negotiates the terms of a residential mortgage loan
on behalf of a client as an ancillary matter to the attorney's representation of the client,
unless the attorney is compensated by a lender, a mortgage broker, or other mortgage
loan originator or by any agent of the lender, mortgage broker, or other mortgage loan
originator; and
new text end

new text begin (5) an employee of a nonprofit organization exempt from taxation under section
501(c)(3) of the Internal Revenue Code if the organization is not otherwise engaged in the
mortgage loan business, but is exclusively engaged in the financing of homeownership
through a zero percent interest mortgage product for low and moderate income
households, to the extent exempted by the commissioner through rule, advisory ruling,
or interpretation, if the United States Department of Housing and Urban Development
has authorized this exemption, and if the employee is certified for this exemption in a
certification method set forth by rule, instruction, or procedure of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Independent contractor loan processors or underwriters. new text end

new text begin A loan
processor or underwriter who is an independent contractor may not engage in the activities
of a loan processor or underwriter unless the independent contractor loan processor
or underwriter obtains and maintains a license under subdivision 1. An independent
contractor loan processor or underwriter licensed as a mortgage loan originator must have
and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing
System and Registry.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin In order to facilitate an orderly transition to licensing and
minimize disruption in the mortgage marketplace, the effective date for subdivision 1
is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of
Housing and Urban Development, under the authority granted in Public Law 110-289,
section 1508(a).
new text end

Sec. 4.

new text begin [58A.04] STATE LICENSE AND REGISTRATION APPLICATION AND
ISSUANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Application form. new text end

new text begin An applicant for a license shall apply in a form
as prescribed by the commissioner. The form must contain content as set forth by rule,
instruction, or procedure of the commissioner and may be changed or updated as necessary
by the commissioner in order to carry out the purposes of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner may establish relationships or contracts. new text end

new text begin In order
to fulfill the purposes of this chapter, the commissioner is authorized to establish
relationships or contracts with the Nationwide Mortgage Licensing System and Registry
or other entities designated by the Nationwide Mortgage Licensing System and Registry to
collect and maintain records and process transaction fees or other fees related to licensees
or other persons subject to this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Waive or modify requirements. new text end

new text begin For the purpose of participating in the
Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to
waive or modify, in whole or in part, by rule or order, any or all of the requirements of
this chapter and to establish new requirements as reasonably necessary to participate in
the Nationwide Mortgage Licensing System and Registry.
new text end

new text begin Subd. 4. new text end

new text begin Background checks. new text end

new text begin In connection with an application for licensing as a
mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide
Mortgage Licensing System and Registry information concerning the applicant's identity,
including:
new text end

new text begin (1) fingerprints for submission to the Federal Bureau of Investigation, and a
governmental agency or entity authorized to receive the information for a state, national,
and international criminal history background check; and
new text end

new text begin (2) personal history and experience in a form prescribed by the Nationwide
Mortgage Licensing System and Registry, including the submission of authorization for
the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
new text end

new text begin (i) an independent credit report obtained from a consumer reporting agency
described in United States Code, title 15, section 1681a(p); and
new text end

new text begin (ii) information related to administrative, civil, or criminal findings by a
governmental jurisdiction.
new text end

new text begin Subd. 5. new text end

new text begin Agent for purposes of requesting and distributing criminal
information. new text end

new text begin For the purposes of this section and in order to reduce the points of
contact which the Federal Bureau of Investigation may have to maintain for purposes of
subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage
Licensing System and Registry as a channeling agent for requesting information from and
distributing information to the Department of Justice or any governmental agency.
new text end

new text begin Subd. 6. new text end

new text begin Agent for purposes of requesting and distributing noncriminal
information. new text end

new text begin For the purposes of this section and in order to reduce the points of contact
which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i)
and (ii), the commissioner may use the Nationwide Mortgage Licensing System and
Registry as a channeling agent for requesting and distributing information to and from any
source so directed by the commissioner.
new text end

Sec. 5.

new text begin [58A.045] TERM OF LICENSE AND FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Term. new text end

new text begin Licenses for mortgage loan originators issued under this
chapter expire on December 31 and are renewable on January 1 of each year after that date.
new text end

new text begin Subd. 2. new text end

new text begin Fees. new text end

new text begin The following fees must be paid to the commissioner:
new text end

new text begin (1) for a mortgage loan originator license, $90; and
new text end

new text begin (2) for a renewal mortgage loan originator license, $50.
new text end

Sec. 6.

new text begin [58A.05] ISSUANCE OF LICENSE.
new text end

new text begin The commissioner shall not issue a mortgage loan originator license unless the
commissioner finds at a minimum, that:
new text end

new text begin (1) the applicant has never had a mortgage loan originator license revoked in a
governmental jurisdiction, except that a subsequent formal vacation of a revocation shall
not be deemed a revocation;
new text end

new text begin (2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a
felony in a domestic, foreign, or military court:
new text end

new text begin (i) during the seven-year period preceding the date of the application for licensing
and registration;
new text end

new text begin (ii) at any time preceding the date of application, if the felony involved an act of
fraud, dishonesty, or a breach of trust, or money laundering; or
new text end

new text begin (iii) provided that a pardon of a conviction is not a conviction for purposes of this
clause;
new text end

new text begin (3) the applicant has demonstrated financial responsibility, character, and general
fitness such as to command the confidence of the community and to warrant a
determination that the mortgage loan originator will operate honestly, fairly, and efficiently
within the purposes of this chapter. For purposes of this chapter, a person has shown that
the person is not financially responsible when the person has shown a disregard in the
management of the person's own financial condition. A determination that an individual
has not shown financial responsibility may include, but is not limited to:
new text end

new text begin (i) current outstanding judgments, except judgments solely as a result of medical
expenses;
new text end

new text begin (ii) current outstanding tax liens or other government liens and filings;
new text end

new text begin (iii) foreclosures within the past three years; and
new text end

new text begin (iv) a pattern of seriously delinquent accounts within the past three years;
new text end

new text begin (4) the applicant has completed the prelicensing education requirement described
in section 58A.06;
new text end

new text begin (5) the applicant has passed a written test that meets the test requirement described
in section 58A.07; and
new text end

new text begin (6) the applicant has met the surety bond requirement as required under section
58A.13.
new text end

Sec. 7.

new text begin [58A.06] PRELICENSING AND RELICENSING EDUCATION OF
LOAN ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Minimum educational requirements. new text end

new text begin In order to meet the
prelicensing education requirement referred to in section 58A.05, clause (4), a person
shall complete at least 20 hours of education approved according to subdivision 2, that
includes at least:
new text end

new text begin (1) three hours of federal law and regulations;
new text end

new text begin (2) three hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; and
new text end

new text begin (3) two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Approved educational courses. new text end

new text begin For purposes of subdivision 1,
prelicensing education courses must be reviewed, and approved by the Nationwide
Mortgage Licensing System and Registry based upon reasonable standards. Review
and approval of a prelicensing education course must include review and approval of
the course provider.
new text end

new text begin Subd. 3. new text end

new text begin Approval of employer and affiliate educational courses. new text end

new text begin Nothing in
this section precludes a prelicensing education course, as approved by the Nationwide
Mortgage Licensing System and Registry, that is provided by the employer of the applicant
or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or
affiliate of the employer or entity.
new text end

new text begin Subd. 4. new text end

new text begin Venue of education. new text end

new text begin Prelicensing education may be offered in a classroom,
online, or by any other means approved by the Nationwide Mortgage Licensing System
and Registry.
new text end

new text begin Subd. 5. new text end

new text begin Reciprocity of education. new text end

new text begin The prelicensing education requirements
approved by the Nationwide Mortgage Licensing System and Registry in subdivision
1 for a state must be accepted as credit toward completion of prelicensing education
requirements in Minnesota.
new text end

new text begin Subd. 6. new text end

new text begin Relicensing education requirements. new text end

new text begin A person previously licensed under
this chapter after the effective date of this chapter applying to be licensed again must
prove that the person has completed all of the continuing education requirements for
the year in which the license was last held.
new text end

Sec. 8.

new text begin [58A.07] TESTING OF LOAN ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to meet the written test requirement referred to
in section 58A.05, clause (5), an individual shall pass, in accordance with the standards
established under this section, a qualified written test developed by the Nationwide
Mortgage Licensing System and Registry and administered by a test provider approved
by the Nationwide Mortgage Licensing System and Registry based upon reasonable
standards.
new text end

new text begin Subd. 2. new text end

new text begin Qualified test. new text end

new text begin A written test must not be treated as a qualified written
test for purposes of subdivision 1 unless the test adequately measures the applicant's
knowledge and comprehension in appropriate subject areas, including:
new text end

new text begin (1) ethics;
new text end

new text begin (2) federal law and regulation pertaining to mortgage origination;
new text end

new text begin (3) state law and rule pertaining to mortgage origination; and
new text end

new text begin (4) federal and state law and rule, including instruction on fraud, consumer
protection, the nontraditional mortgage marketplace, and fair lending issues.
new text end

new text begin Subd. 3. new text end

new text begin Testing location. new text end

new text begin Northing in this section prohibits a test provider approved
by the Nationwide Mortgage Licensing System and Registry from providing a test at the
location of the employer of the applicant or the location of a subsidiary or affiliate of the
employer of the applicant, or the location of an entity with which the applicant holds an
exclusive arrangement to conduct the business of a mortgage loan originator.
new text end

new text begin Subd. 4. new text end

new text begin Minimum competence. new text end

new text begin (a) An individual is not considered to have
passed a qualified written test unless the individual achieves a test score of not less than
75 percent correct answers to questions.
new text end

new text begin (b) An individual may retake a test three consecutive times with each consecutive
taking occurring at least 30 days after the preceding test.
new text end

new text begin (c) After failing three consecutive tests, an individual shall wait at least six months
before taking the test again.
new text end

new text begin (d) A licensed mortgage loan originator who fails to maintain a valid license for a
period of five years or longer shall retake the test, not taking into account any time during
which the individual is a registered mortgage loan originator.
new text end

Sec. 9.

new text begin [58A.08] STANDARDS FOR LICENSE RENEWAL.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The minimum standards for license renewal for a
mortgage loan originator include that the mortgage loan originator:
new text end

new text begin (1) continues to meet the minimum standards for license issuance under section
58A.05;
new text end

new text begin (2) has satisfied the annual continuing education requirements described in section
58A.09; and
new text end

new text begin (3) has paid all required fees for renewal of the license.
new text end

new text begin Subd. 2. new text end

new text begin Failure to satisfy minimum standards of license renewal. new text end

new text begin The license of
a mortgage loan originator failing to satisfy the minimum standards for license renewal
expires. The commissioner may adopt procedures for the reinstatement of expired licenses
consistent with the standards established by the Nationwide Mortgage Licensing System
and Registry.
new text end

Sec. 10.

new text begin [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN
ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to meet the annual continuing education
requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage
loan originator shall complete at least eight hours of education approved according to
subdivision 2 that includes at least:
new text end

new text begin (1) three hours of federal law and regulations;
new text end

new text begin (2) two hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; and
new text end

new text begin (3) two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Approved educational courses. new text end

new text begin For purposes of subdivision 1, continuing
education courses must be reviewed and approved by the Nationwide Mortgage Licensing
System and Registry based upon reasonable standards. Review and approval of a
continuing education course must include review and approval of the course provider.
new text end

new text begin Subd. 3. new text end

new text begin Approval of employer and affiliate educational courses. new text end

new text begin Nothing in
this section precludes an education course, as approved by the Nationwide Mortgage
Licensing System and Registry, that is provided by the employer of the mortgage loan
originator or an entity that is affiliated with the mortgage loan originator by an agency
contract, or a subsidiary or affiliate of the employer or entity.
new text end

new text begin Subd. 4. new text end

new text begin Venue of education. new text end

new text begin Continuing education may be offered either in a
classroom, online, or by other means approved by the Nationwide Mortgage Licensing
System and Registry.
new text end

new text begin Subd. 5. new text end

new text begin Calculation of continuing education credits. new text end

new text begin A licensed mortgage loan
originator:
new text end

new text begin (1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive
credit for a continuing education course in the year in which the course is taken; and
new text end

new text begin (2) may not take the same approved course in the same or successive years to meet
the annual requirements for continuing education.
new text end

new text begin Subd. 6. new text end

new text begin Instructor credit. new text end

new text begin A licensed mortgage loan originator who is an approved
instructor of an approved continuing education course may receive credit for the licensed
mortgage loan originator's own annual continuing education requirement at the rate of
two hours credit for every one hour taught.
new text end

new text begin Subd. 7. new text end

new text begin Reciprocity of education. new text end

new text begin A person having successfully completed the
education requirements approved by the Nationwide Mortgage Licensing System and
Registry in subdivision 1 for a state must be accepted as credit toward completion of
continuing education requirements in Minnesota.
new text end

new text begin Subd. 8. new text end

new text begin Lapse in license. new text end

new text begin A licensed mortgage loan originator who subsequently
becomes unlicensed must complete the continuing education requirements for the last year
in which the license was held before a new or renewed license is issued.
new text end

new text begin Subd. 9. new text end

new text begin Deficiency. new text end

new text begin A person meeting the requirements of section 58A.08,
subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as
established by rule of the commissioner.
new text end

Sec. 11.

new text begin [58A.10] AUTHORITY TO REQUIRE LICENSE.
new text end

new text begin In addition to any other duties imposed upon the commissioner by law, the
commissioner shall require mortgage loan originators to be licensed and registered
through the Nationwide Mortgage Licensing System and Registry. In order to carry out
this requirement, the commissioner may participate in the Nationwide Mortgage Licensing
System and Registry. For this purpose, the commissioner may establish by rule or order
requirements as necessary, including but not limited to:
new text end

new text begin (1) background checks for:
new text end

new text begin (i) criminal history through fingerprint or other databases;
new text end

new text begin (ii) civil or administrative records;
new text end

new text begin (iii) credit history; or
new text end

new text begin (iv) other information as determined necessary by the Nationwide Mortgage
Licensing System and Registry;
new text end

new text begin (2) the payment of fees to apply for or renew licenses through the Nationwide
Mortgage Licensing System and Registry;
new text end

new text begin (3) the setting or resetting as necessary of renewal or reporting dates; and
new text end

new text begin (4) requirements for amending or surrendering a license or other activities the
commissioner considers necessary for participation in the Nationwide Mortgage Licensing
System and Registry.
new text end

Sec. 12.

new text begin [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND
REGISTRY INFORMATION CHALLENGE PROCESS.
new text end

new text begin The commissioner shall establish a process that allows mortgage loan originators
to challenge information entered into the Nationwide Mortgage Licensing System and
Registry by the commissioner.
new text end

Sec. 13.

new text begin [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND
PENALTIES.
new text end

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

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (3) order restitution against persons subject to this chapter for violations of this
chapter;
new text end

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

new text begin (5) issue orders or directives under this chapter as follows:
new text end

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

new text begin (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;
new text end

new text begin (iii) enter immediate temporary orders to cease business under a license or interim
license issued pursuant to the authority granted under section 58A.03, subdivision 4, if
the commissioner determines that the license was erroneously granted or the licensee is
currently in violation of this chapter; and
new text end

new text begin (iv) order or direct other affirmative action the commissioner considers necessary.
new text end

new text begin (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.
new text end

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

new text begin (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 end

Sec. 14.

new text begin [58A.13] SURETY BOND REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Coverage, form, and rules. new text end

new text begin (a) Each mortgage loan originator must
be covered by a surety bond meeting the requirements of this section. In the event that
the mortgage loan originator is an employee or exclusive agent of a person subject to this
chapter, the surety bond of the person subject to this chapter can be used in lieu of the
mortgage loan originator's surety bond requirement.
new text end

new text begin (b) The surety bond shall provide coverage for each mortgage loan originator in
an amount as prescribed in subdivision 2.
new text end

new text begin (c) The surety bond must be in a form as prescribed by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Penal sum of surety bond. new text end

new text begin The penal sum of the surety bond must be
maintained in an amount that reflects the dollar amount of loans originated as determined
by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Action on bond. new text end

new text begin When an action is commenced on a licensee's bond the
commissioner may require the filing of a new bond.
new text end

new text begin Subd. 4. new text end

new text begin New bond. new text end

new text begin Immediately upon recovery upon any action on the bond
the licensee shall file a new bond.
new text end

Sec. 15.

new text begin [58A.14] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Protections. new text end

new text begin Except as otherwise provided in Public Law 110-289,
section 1512, the requirements under chapter 13 or any federal law regarding the privacy
or confidentiality of any information or material provided to the Nationwide Mortgage
Licensing System and Registry, and any privilege arising under federal or state law,
including the rules of any federal or state court, with respect to the information or material,
continue to apply to the information or material after the information or material has been
disclosed to the Nationwide Mortgage Licensing System and Registry. The information
and material may be shared with all state and federal regulatory officials with mortgage
industry oversight authority without the loss of privilege or the loss of confidentiality
protections provided by chapter 13 or federal law.
new text end

new text begin Subd. 2. new text end

new text begin Agreements and sharing arrangements. new text end

new text begin For purposes of this section,
the commissioner is authorized to enter agreements or sharing arrangements with
other governmental agencies, the Conference of State Bank Supervisors, the American
Association of Residential Mortgage Regulators, or other associations representing
governmental agencies as established by rule or order of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Nonapplicability of certain requirements. new text end

new text begin Information or material that is
subject to a privilege or confidentiality under subdivision 1 is not subject to:
new text end

new text begin (1) disclosure under any federal or state law governing the disclosure to the public of
information held by an officer or an agency of the federal government or the respective
state; or
new text end

new text begin (2) subpoena or discovery, or admission into evidence, in any private civil action
or administrative process, unless with respect to any privilege held by the Nationwide
Mortgage Licensing System and Registry with respect to the information or material,
the person to whom the information or material pertains waives, in whole or in part, in
the discretion of the person, that privilege.
new text end

new text begin Subd. 4. new text end

new text begin Coordination with Minnesota Government Data Practices Act. new text end

new text begin Chapter
13 relating to the disclosure of confidential supervisory information or any information or
material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by
the requirements of this section.
new text end

new text begin Subd. 5. new text end

new text begin Public access to information. new text end

new text begin This section does not apply with respect to
the information or material relating to the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, mortgage loan originators that are included
in the Nationwide Mortgage Licensing System and Registry for access by the public.
new text end

Sec. 16.

new text begin [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In addition to any authority allowed under this chapter,
the commissioner may conduct investigations and examinations according to subdivisions
2 to 9.
new text end

new text begin Subd. 2. new text end

new text begin Authority to access information. new text end

new text begin For purposes of initial licensing, license
renewal, license suspension, license conditioning, license revocation or termination, or
general or specific inquiry or investigation to determine compliance with this chapter, the
commissioner may access, receive and use any books, accounts, records, files, documents,
information or evidence including but not limited to:
new text end

new text begin (1) criminal, civil, and administrative history information, including nonconviction
data;
new text end

new text begin (2) personal history and experience information including independent credit reports
obtained from a consumer reporting agency described in United States Code, title 15,
section 1681a(p); and
new text end

new text begin (3) any other documents, information, or evidence the commissioner considers
relevant to the inquiry or investigation regardless of the location, possession, control, or
custody of the documents, information, or evidence.
new text end

new text begin Subd. 3. new text end

new text begin Investigation, examination, and subpoena authority. new text end

new text begin For the purposes
of investigating violations or complaints arising under this chapter, or for the purposes of
examination, the commissioner may review, investigate, or examine a licensee, individual,
or person subject to this chapter, as often as necessary in order to carry out the purposes
of this chapter. The commissioner may direct, subpoena, or order the attendance of and
examine under oath all persons whose testimony may be required about the loans or the
business or subject matter of any such examination or investigation, and may direct,
subpoena, or order such person to produce books, accounts, records, files, and any other
documents the commissioner considers relevant to the inquiry.
new text end

new text begin Subd. 4. new text end

new text begin Availability of books and records. new text end

new text begin A licensee, individual, or person
subject to this chapter shall make available to the commissioner upon request the books
and records relating to the operations of the licensee, individual, or person subject to this
chapter. The commissioner shall have access to the books and records and interview
the officers, principals, mortgage loan originators, employees, independent contractors,
agents, and customers of the licensee, individual, or person subject to this chapter
concerning the licensee's, individual's, or person's business.
new text end

new text begin Subd. 5. new text end

new text begin Reports and other information as directed. new text end

new text begin A licensee, individual, or
person subject to this chapter shall make or compile reports or prepare other information
as directed by the commissioner in order to carry out the purposes of this section including
but not limited to:
new text end

new text begin (1) accounting compilations;
new text end

new text begin (2) information lists and data concerning loan transactions in a format prescribed
by the commissioner; or
new text end

new text begin (3) other information the commissioner considers necessary to carry out the
purposes of this section.
new text end

new text begin Subd. 6. new text end

new text begin Control access to records. new text end

new text begin In making an examination or investigation
authorized by this chapter, the commissioner may control access to documents and records
of the licensee or person under examination or investigation. The commissioner may
take possession of the documents and records or place a person in exclusive charge of
the documents and records in the place where they are usually kept. During the period of
control, no individual or person shall remove or attempt to remove any of the documents
and records except pursuant to a court order or with the consent of the commissioner.
Unless the commissioner has reasonable grounds to believe the documents or records
of the licensee have been, or are at risk of being, altered or destroyed for purposes of
concealing a violation of this chapter, the licensee or owner of the documents and records
has access to the documents or records as necessary to conduct its ordinary business affairs.
new text end

new text begin Subd. 7. new text end

new text begin Additional authority. new text end

new text begin In order to carry out the purposes of this section,
the commissioner may:
new text end

new text begin (1) retain attorneys, accountants, or other professionals and specialists as examiners,
auditors, or investigators to conduct or assist in the conduct of examinations or
investigations;
new text end

new text begin (2) enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory burden
by sharing resources, standardized or uniform methods or procedures, and documents,
records, information, or evidence obtained under this section;
new text end

new text begin (3) use, hire, contract, or employ public or privately available analytical systems,
methods, or software to examine or investigate the licensee, individual, or person subject
to this chapter;
new text end

new text begin (4) accept and rely on examination or investigation reports made by other
government officials, within or without this state; or
new text end

new text begin (5) accept audit reports made by an independent certified public accountant for the
licensee, individual, or person subject to this chapter in the course of that part of the
examination covering the same general subject matter as the audit and incorporate the
audit report in the report of the examination, report of investigation or other writing of
the commissioner.
new text end

new text begin Subd. 8. new text end

new text begin Effect of authority. new text end

new text begin The authority of this section remains in effect,
whether a licensee, individual, or person subject to this chapter acts or claims to act under
any licensing or registration law of this state, or claims to act without such authority.
new text end

new text begin Subd. 9. new text end

new text begin Withhold records. new text end

new text begin A licensee, individual, or person subject to
investigation or examination under this section shall not knowingly withhold, abstract,
remove, mutilate, destroy, or secrete any books, records, computer records, or other
information.
new text end

Sec. 17.

new text begin [58A.16] PROHIBITED ACTS AND PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin It is a violation of this chapter for a person or individual
subject to this chapter to:
new text end

new text begin (1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead
borrowers or lenders or to defraud any person;
new text end

new text begin (2) engage in any unfair or deceptive practice toward any person;
new text end

new text begin (3) obtain property by fraud or misrepresentation;
new text end

new text begin (4) solicit or enter into a contract with a borrower that provides in substance that the
person or individual subject to this chapter may earn a fee or commission through "best
efforts" to obtain a loan even though no loan is actually obtained for the borrower;
new text end

new text begin (5) solicit, advertise, or enter into a contract for specific interest rates, points, or
other financing terms unless the terms are actually available at the time of soliciting,
advertising, or contracting;
new text end

new text begin (6) conduct any business covered by this chapter without holding a valid license as
required under this chapter, or assist or aide and abet any person in the conduct of business
under this chapter without a valid license as required under this chapter;
new text end

new text begin (7) fail to make disclosures as required by this chapter and any other applicable
state or federal law or regulations;
new text end

new text begin (8) fail to comply with this chapter or rules adopted under this chapter or fail
to comply with any other state or federal law or regulations applicable to any business
authorized or conducted under this chapter;
new text end

new text begin (9) make, in any manner, any false or deceptive statement or representation
including, with regard to the rates, points, or other financing terms or conditions for a
residential mortgage loan; or engage in bait-and-switch advertising;
new text end

new text begin (10) negligently make a false statement or knowingly and willfully make an omission
of material fact in connection with any information or reports filed with a governmental
agency or the Nationwide Mortgage Licensing System and Registry or in connection with
an investigation conducted by the commissioner or another governmental agency;
new text end

new text begin (11) make a payment, threat, or promise, directly or indirectly, to a person for the
purposes of influencing the independent judgment of the person in connection with a
residential mortgage loan, or make a payment threat or promise, directly or indirectly, to
an appraiser of a property, for the purposes of influencing the independent judgment of the
appraiser with respect to the value of the property;
new text end

new text begin (12) collect, charge, attempt to collect or charge, or use or propose an agreement
purporting to collect or charge a fee prohibited by this chapter;
new text end

new text begin (13) cause or require a borrower to obtain property insurance coverage in an amount
that exceeds the replacement cost of the improvements as established by the property
insurer; or
new text end

new text begin (14) fail to truthfully account for money belonging to a party to a residential
mortgage loan transaction.
new text end

new text begin Subd. 2. new text end

new text begin Loan processor or underwriter activities. new text end

new text begin An individual engaging solely
in loan processor or underwriter activities shall not represent to the public, through
advertising or other means of communicating or providing information, including the use
of business cards, stationery, brochures, signs, rate lists, or other promotional items, that
the individual can or will perform any of the activities of a mortgage loan originator.
new text end

Sec. 18.

new text begin [58A.17] MORTGAGE CALL REPORTS.
new text end

new text begin A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and
Registry reports of condition, which must be in the form and contain the information the
Nationwide Mortgage Licensing System and Registry requires.
new text end

Sec. 19.

new text begin [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING
SYSTEM AND REGISTRY.
new text end

new text begin The commissioner shall regularly report violations of this chapter, as well as
enforcement actions and other relevant information, to the Nationwide Mortgage
Licensing System and Registry subject to the provisions contained in section 58A.14.
new text end

Sec. 20.

new text begin [58A.20] UNIQUE IDENTIFIER SHOWN.
new text end

new text begin The unique identifier of any person originating a residential mortgage loan shall
be clearly shown on all residential mortgage loan application forms, solicitations, or
advertisements, including business cards or Web sites, and any other documents as
established by rule or order of the commissioner.
new text end

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2010.
new text end

ARTICLE 2

CONFORMING AND TRANSITIONAL PROVISIONS RELATING TO
MINNESOTA STATUTES, CHAPTER 58

Section 1.

Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:

Subdivision 1.

Residential mortgage originator licensing requirements.

(a)
No person shall act as a residential mortgage originator, or make residential mortgage
loans without first obtaining a license from the commissioner according to the licensing
procedures provided in this chapter.

(b) A licensee must be either a partnership, limited liability partnership, association,
limited liability company, corporation, or other form of business organization, and must
have and maintain deleted text begin at all times one of the following: approval as a mortgagee by either the
federal Department of Housing and Urban Development or the Federal National Mortgage
Association; a minimum net worth, net of intangibles, of at least $250,000; or deleted text end a surety
bond deleted text begin or irrevocable letter of credit deleted text end in the deleted text begin amount of $50,000 deleted text end new text begin amounts prescribed under
section 58.08 new text end . deleted text begin Net worth, net of intangibles, must be calculated in accordance with
generally accepted accounting principles.
deleted text end

(c) The following persons are exempt from the residential mortgage originator
licensing requirements:

(1) a person who is not in the business of making residential mortgage loans and who
makes no more than three such loans, with its own funds, during any 12-month period;

(2) a financial institution as defined in section 58.02, subdivision 10;

(3) an agency of the federal government, or of a state or municipal government;

(4) an employee or employer pension plan making loans only to its participants;

(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of
a specific order issued by a court of competent jurisdiction; or

(6) a person exempted by order of the commissioner.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended
to read:

Subd. 2.

Application contents.

(a) The application must contain the name and
complete business address or addresses of the license applicant. The license applicant
must be a partnership, limited liability partnership, association, limited liability company,
corporation, or other form of business organization, and the application must contain the
names and complete business addresses of each partner, member, director, and principal
officer. The application must also include a description of the activities of the license
applicant, in the detail and for the periods the commissioner may require.

(b) A residential mortgage originator applicant must submit deleted text begin one of the following:
deleted text end

deleted text begin (1) evidence which shows, to the commissioner's satisfaction, that either the federal
Department of Housing and Urban Development or the Federal National Mortgage
Association has approved the residential mortgage originator applicant as a mortgagee;
deleted text end

deleted text begin (2) a surety bond or irrevocable letter of credit in the amount of not less than
$50,000 in a form approved by the commissioner, issued by an insurance company or bank
authorized to do so in this state. The bond or irrevocable letter of credit must be available
for the recovery of expenses, fines, and fees levied by the commissioner under this chapter
and for losses incurred by borrowers. The bond or letter of credit must be submitted with
the license application, and evidence of continued coverage must be submitted with each
renewal. Any change in the bond or letter of credit must be submitted for approval by the
commissioner within ten days of its execution; or
deleted text end

deleted text begin (3) a copy of the residential mortgage originator applicant's most recent audited
financial statement, including balance sheet, statement of income or loss, statements of
changes in shareholder equity, and statement of changes in financial position. Financial
statements must be as of a date within 12 months of the date of application. deleted text end new text begin a surety bond
that meets the requirements of section 58.08, subdivision 1a.
new text end

(c) The application must also include all of the following:

(1) an affirmation under oath that the applicant:

(i) is in compliance with the requirements of section 58.125;

deleted text begin (ii) will maintain a perpetual roster of individuals employed as residential mortgage
originators, including employees and independent contractors, which includes the dates
that mandatory testing, initial education, and continuing education were completed. In
addition, the roster must be made available to the commissioner on demand, within three
business days of the commissioner's request;
deleted text end

deleted text begin (iii) deleted text end new text begin (ii) new text end will advise the commissioner of any material changes to the information
submitted in the most recent application within ten days of the change;

deleted text begin (iv) deleted text end new text begin (iii) new text end will advise the commissioner in writing immediately of any bankruptcy
petitions filed against or by the applicant or licensee;

deleted text begin (v) deleted text end new text begin (iv) new text end will maintain at all times deleted text begin either a net worth, net of intangibles, of at least
$250,000 or deleted text end a surety bond deleted text begin or irrevocable letter of credit deleted text end in the amount of at least deleted text begin $50,000 deleted text end new text begin
$100,000 new text end ;

deleted text begin (vi) deleted text end new text begin (v) new text end complies with federal and state tax laws; and

deleted text begin (vii) deleted text end new text begin (vi) new text end complies with sections 345.31 to 345.60, the Minnesota unclaimed
property law;

(2) information as to the mortgage lending, servicing, or brokering experience of the
applicant and persons in control of the applicant;

(3) information as to criminal convictions, excluding traffic violations, of persons in
control of the license applicant;

(4) whether a court of competent jurisdiction has found that the applicant or persons
in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit in performing an act for which a license is required under
this chapter;

(5) whether the applicant or persons in control of the applicant have been the subject
of: an order of suspension or revocation, cease and desist order, or injunctive order, or
order barring involvement in an industry or profession issued by this or another state or
federal regulatory agency or by the Secretary of Housing and Urban Development within
the ten-year period immediately preceding submission of the application; and

(6) other information required by the commissioner.

Sec. 3.

Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Residential mortgage originators. new text end

new text begin (a) An applicant for a residential
mortgage originator license must file with the department a surety bond in the amount of
$100,000, issued by an insurance company authorized to do so in this state. The bond
must cover all mortgage loan originators who are employees or independent agents of
the applicant. The bond must be available for the recovery of expenses, fines, and fees
levied by the commissioner under this chapter and for losses incurred by borrowers as
a result of a licensee's noncompliance with the requirements of this chapter, sections
325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities
regulated by this chapter.
new text end

new text begin (b) The bond must be submitted with the originator's license application and
evidence of continued coverage must be submitted with each renewal. Any change in the
bond must be submitted for approval by the commissioner, within ten days of its execution.
The bond or a substitute bond shall remain in effect during all periods of licensing.
new text end

new text begin (c) Upon filing of the mortgage call report as required by section 58A.17, a licensee
shall maintain or increase its surety bond to reflect the total dollar amount of the closed
residential mortgage loans originated in this state in the preceding year according to the
table in this paragraph. A licensee may decrease its surety bond according to the table in
this paragraph if the surety bond required is less than the amount of the surety bond on
file with the department.
new text end

new text begin Dollar Amount of Closed Residential Mortgage Loans new text end	new text begin Surety Bond Required new text end
new text begin $0 to $5,000,000 new text end	new text begin $100,000 new text end
new text begin $5,000,000.01 to $10,000,000 new text end	new text begin $125,000 new text end
new text begin $10,000,000.01 to $25,000,000 new text end	new text begin $150,000 new text end
new text begin Over $25,000,000 new text end	new text begin $200,000 new text end

new text begin For purposes of this subdivision, "mortgage loan originator" has the meaning given
the term in section 58A.02, subdivision 7.
new text end

Sec. 4.

Minnesota Statutes 2008, section 58.09, is amended to read:

58.09 TERM OF LICENSE.

deleted text begin Initial deleted text end Licenses for residential mortgage originators and residential mortgage
servicers issued under this chapter expire on deleted text begin July 31, 2001, deleted text end new text begin December 31 new text end and are
renewable on deleted text begin August 1, 2001, and on August 1 deleted text end new text begin January 1 new text end of each deleted text begin odd-numbered deleted text end year
after that date. deleted text begin A new licensee whose license expires less than 12 months from the date
of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in
section 58.10, subdivision 1, clause (1) or (3).
deleted text end

Sec. 5.

Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid to the commissioner:

(1) for deleted text begin an initial deleted text end new text begin a new text end residential mortgage originator license, deleted text begin $2,125 deleted text end new text begin $1,000 new text end , $50 of
which is credited to the consumer education account in the special revenue fund;

(2) for a renewal license, deleted text begin $1,125 deleted text end new text begin $500 new text end , $50 of which is credited to the consumer
education account in the special revenue fund;

(3) for deleted text begin an initial deleted text end new text begin a new text end residential mortgage servicer's license, deleted text begin $1,000 deleted text end new text begin $500 new text end ;

(4) for a renewal license, deleted text begin $500 deleted text end new text begin $250 new text end ; and

(5) for a certificate of exemption, $100.

Sec. 6.

Minnesota Statutes 2008, section 58.11, is amended to read:

58.11 LICENSE RENEWAL.

Subdivision 1.

Term.

Licenses are renewable on deleted text begin August 1, 2001, and on August 1 deleted text end new text begin
January 1 new text end of each deleted text begin odd-numbered deleted text end year deleted text begin after that date deleted text end .

Subd. 2.

Timely renewal.

(a) A person whose application is properly and timely
filed who has not received notice of denial of renewal is considered approved for renewal
and the person may continue to transact business as a residential mortgage originator or
servicer whether or not the renewed license has been received on or before deleted text begin August deleted text end new text begin January
new text end 1 of the renewal year. Application for renewal of a license is considered timely filed if
received by the commissioner by, or mailed with proper postage and postmarked by, deleted text begin July deleted text end new text begin
December new text end 15 of the renewal year. An application for renewal is considered properly filed
if made upon forms duly executed and sworn to, accompanied by fees prescribed by this
chapter, and containing any information that the commissioner requires.

(b) A person who fails to make a timely application for renewal of a license and
who has not received the renewal license as of deleted text begin August deleted text end new text begin January new text end 1 of the renewal year is
unlicensed until the renewal license has been issued by the commissioner and is received
by the person.

Subd. 3.

Contents of renewal application.

Application for the renewal of an
existing license must contain the information specified in section 58.06, subdivision 2;
however, only the requested information having changed from the most recent prior
application need be submitted.

Subd. 4.

Cancellation.

A licensee ceasing an activity or activities regulated by this
chapter and desiring to no longer be licensed shall so inform the commissioner in writing
and, at the same time, surrender the license and all other symbols or indicia of licensure.
The licensee shall include a plan for the withdrawal from regulated business, including a
timetable for the disposition of the business.

Sec. 7. new text begin ASSESSMENT.
new text end

new text begin The commissioner may levy a pro rata assessment on institutions licensed under
Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce
for administering the licensing and registration requirements of Minnesota Statutes,
section 58A.10. The assessment amount must be determined by dividing those costs by
the number of licensees.
new text end

new text begin The commissioner shall levy the assessments and notify each institution of the
amount of the assessment being levied by September 30, 2010. The institution shall pay
the assessment to the department no later than November 30, 2010. If an institution fails
to pay its assessment by this date, its license may be suspended by the commissioner
until it is paid in full.
new text end

new text begin This section expires December 1, 2010.
new text end

Sec. 8. new text begin RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS;
TRANSITIONAL LICENSE FEE AND TERMS.
new text end

new text begin A residential mortgage originator licensee and a residential mortgage service
licensee operating under a valid license under Minnesota Statutes 2008, chapter 58,
with an expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a
residential mortgage originator, and $100 for a residential mortgage servicer. The prorated
license renewal fee must be paid by December 31, 2010, and such payment extends the
license term until December 31, 2011.
new text end

Sec. 9. new text begin APPROPRIATION.
new text end

new text begin $261,000 in fiscal year 2011 is appropriated from the general fund to the
commissioner of commerce for implementing this act. The base appropriation for this
program is $138,000 in fiscal year 2012 and $142,000 in fiscal year 2013.
new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2009 Supplement, section 58.126, new text end new text begin is repealed.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 31, 2010.
new text end