58.06 APPLICATION REQUIREMENTS FOR RESIDENTIAL MORTGAGE
ORIGINATORS AND SERVICERS.
Subdivision 1. License application form.
Application for a residential mortgage originator
or a residential mortgage servicer license must be in writing, under oath, and on a form obtained
from and prescribed by the commissioner.
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) An applicant must submit one of the following:
(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 applicant as a mortgagee;
(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
(3) a copy of the 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.
(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
(ii) will maintain a perpetual roster of individuals employed as residential mortgage
originators, including employees and independent contractors, which includes the date that
mandatory initial education was completed. In addition, the roster must be made available to the
commissioner on demand, within three business days of the commissioner's request;
(iii) will advise the commissioner of any material changes to the information submitted in
the most recent application within ten days of the change;
(iv) will advise the commissioner in writing immediately of any bankruptcy petitions filed
against or by the applicant or licensee;
(v) will maintain at all times either a net worth, net of intangibles, of at least $250,000 or a
surety bond or irrevocable letter of credit in the amount of at least $50,000;
(vi) complies with federal and state tax laws; and
(vii) complies with sections
, 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.
Subd. 3. Waiver.
The commissioner may, for good cause shown, waive any requirement of
this section with respect to an initial license application or to permit a license applicant to submit
substituted information in its license application in lieu of the information required by this section.
History: 1998 c 343 art 1 s 6; 1999 c 151 s 35; 2007 c 57 art 3 s 15,16