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Minnesota Legislature

Office of the Revisor of Statutes

HF 990

as introduced - 91st Legislature (2019 - 2020) Posted on 02/11/2019 02:17pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
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A bill for an act
relating to financial institutions; adding an exemption to licensing requirements
for residential mortgage originators; providing for conformity with federal truth
in lending requirements; amending Minnesota Statutes 2018, section 58.04,
subdivision 1.

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

Section 1.

Minnesota Statutes 2018, 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 a surety bond in the amounts prescribed under section 58.08.

(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; deleted text beginor
deleted text end

(6) a person exempted by order of the commissionerdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (7) a manufactured home dealer, as defined in section 327B.01, subdivision 7 or 11b,
or a manufactured home salesperson, as defined in section 327B.01, subdivision 19, that:
new text end

new text begin (i) does not receive compensation or gain for engaging in activities described in section
58.16, subdivision 1, in excess of the compensation or gain received in a comparable cash
transaction;
new text end

new text begin (ii) discloses to the borrower in writing (A) any corporate affiliation with a lender, and
(B) if a corporate affiliation with a lender exists, the name of at least one unaffiliated lender;
and
new text end

new text begin (iii) does not directly negotiate with the borrower or lender on loan terms, including
rates, fees, and other costs.
new text end