SF 1083

as introduced - 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 each individual residential mortgage 
  2.3   originator listed on the form: 
  2.4      (1) is employed as an individual residential mortgage 
  2.5   originator by the residential mortgage originator submitting the 
  2.6   registration form; 
  2.7      (2) has completed at least 30 hours of continuing 
  2.8   education, approved by the commissioner under subdivision 3, 
  2.9   within the past 24 months, including at least 3.75 hours of 
  2.10  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 credit 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  submission of the individual's initial registration form, 
  2.20  indicating that the individual has not been convicted of a 
  2.21  felony or has been convicted of a felony, as indicated on the 
  2.22  registration form by specifying the offense, the date of 
  2.23  conviction, and the court. 
  2.24     Subd. 3.  [CONTINUING EDUCATION.] (a) Continuing education 
  2.25  used for purposes of subdivision 2 must be instruction approved 
  2.26  by the commissioner as relevant and useful in connection with 
  2.27  residential mortgage origination.  The commissioner's approval 
  2.28  of a course must specify the number of hours, if any, that 
  2.29  satisfy the requirements of subdivision 2 relating to 
  2.30  instruction in ethics, Minnesota mortgage law, and federal fair 
  2.31  lending laws. 
  2.32     (b) An instructor of an approved course is eligible for 
  2.33  continuing education credit equal to 1.5 hours for each hour of 
  2.34  instruction provided by the instructor. 
  2.35     Subd. 4.  [CRIMINAL BACKGROUND EVALUATION.] (a) If a 
  2.36  registration form indicates that an individual residential 
  3.1   mortgage originator has been convicted of a felony, the 
  3.2   commissioner must evaluate the offense under this subdivision. 
  3.3      (b) The commissioner must determine whether the felony 
  3.4   involved conduct by the prospective registrant that evidenced 
  3.5   fraud or misrepresentation in a financial transaction, or 
  3.6   theft.  If the felony did involve such conduct, the commissioner 
  3.7   must reject the registration of that individual. 
  3.8      (c) If the felony is not an offense described in paragraph 
  3.9   (b), the commissioner must determine whether the felony 
  3.10  indicates a substantial risk that the individual may engage in 
  3.11  fraud, misrepresentation, or theft in connection with the 
  3.12  origination of a residential mortgage or may commit a crime of 
  3.13  violence against a borrower.  If the commissioner determines 
  3.14  that the felony does so indicate, the commissioner must reject 
  3.15  the registration of that individual. 
  3.16     Subd. 5.  [TIMING OF INITIAL REGISTRATION AND RENEWAL.] (a) 
  3.17  A registration form under this section must be submitted with 
  3.18  the residential mortgage originator's license renewal 
  3.19  application for license renewals effective on August 1 of each 
  3.20  odd-numbered year. 
  3.21     (b) An applicant for a new residential mortgage originator 
  3.22  license must submit the registration form with the application. 
  3.23     (c) On or before August 1, 2004, a residential mortgage 
  3.24  originator must submit to the commissioner a registration form 
  3.25  for a one-year interim registration under this section, which 
  3.26  will be effective from August 1, 2004 to July 31, 2005.  The 
  3.27  continuing education requirement for this interim registration 
  3.28  is at least 15 hours of instruction approved under subdivision 
  3.29  3, including at least 1.75 hours of instruction in each of the 
  3.30  three specific subject areas required under subdivision 2. 
  3.31     Subd. 6.  [UPDATING REQUIRED.] A residential mortgage 
  3.32  originator must submit an amendment to a registration no later 
  3.33  than 30 days after: 
  3.34     (1) the residential mortgage originator newly employs an 
  3.35  individual residential mortgage originator; 
  3.36     (2) the employment of an individual residential mortgage 
  4.1   originator by the residential mortgage originator terminates; or 
  4.2      (3) the residential mortgage originator learns of a felony 
  4.3   conviction that was not listed on the current registration. 
  4.4      Subd. 7.  [FEES.] No fee is charged for registration 
  4.5   required under this section. 
  4.6      Subd. 8.  [EXEMPTIONS.] This section applies only to 
  4.7   residential mortgage originators required to be licensed under 
  4.8   this chapter. 
  4.9      Sec. 3.  [EFFECTIVE DATE.] 
  4.10     Sections 1 and 2 are effective August 1, 2004, except that 
  4.11  authority for the commissioner of commerce to approve continuing 
  4.12  education courses under section 2, subdivision 3, is effective 
  4.13  the day following final enactment.