1999 Minnesota Statutes

     58.04 Licensing requirement. 

    Subdivision 1.    Residential mortgage originator 
 licensing requirements.  (a) Beginning August 1, 1999, 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) The following persons are exempt from the residential 
 mortgage originator licensing requirements: 

    (1) an employee of one mortgage originator licensee or one 
 person holding a certificate of exemption; 

    (2) a person engaged solely in commercial mortgage 
 activities; 

    (3) a person licensed as a real estate broker under chapter 
 82, and an individual licensee who is licensed to the broker if: 

    (i) the individual licensee acts only under the name, 
 authority, and supervision of the broker to whom the licensee is 
 licensed; 

    (ii) the broker obtains a certificate of exemption 
 according to section 58.05, subdivision 2; 

    (iii) the broker does not collect an advance fee for its 
 residential mortgage-related activities; and 

    (iv) the residential mortgage origination activities are 
 incidental to the real estate licensee's primary activities as a 
 real estate broker or salesperson; 

    (4) an individual licensed as a property/casualty or 
 life/health insurance agent under chapter 60K if: 

    (i) the insurance agent acts on behalf of only one 
 residential mortgage originator, which is in compliance with 
 chapter 58; 

    (ii) the insurance agent has entered into a written 
 contract with the mortgage originator under the terms of which 
 the mortgage originator agrees to accept responsibility for the 
 insurance agent's residential mortgage-related activities; 

    (iii) the insurance agent obtains a certificate of 
 exemption under section 58.05, subdivision 2; and 

    (iv) the insurance agent does not collect an advance fee 
 for the insurance agent's residential mortgage-related 
 activities; 

    (5) a person making no more than five residential mortgage 
 loans with its own funds, during any 12-month period; 

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

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

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

    (9) 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 

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

    Subd. 2.    Residential mortgage servicer licensing 
 requirements.  (a) Beginning August 1, 1999, no person shall 
 engage in activities or practices that fall within the 
 definition of "servicing a residential mortgage loan" under 
 section 58.02, subdivision 22, without first obtaining a license 
 from the commissioner according to the licensing procedures 
 provided in this chapter. 

    (b) The following persons are exempt from the residential 
 mortgage servicer licensing requirements: 

    (1) a person licensed as a residential mortgage originator; 

    (2) an employee of one licensee or one person holding a 
 certificate of exemption based on an exemption under this 
 subdivision; 

    (3) a person engaged solely in commercial mortgage 
 activities; 

    (4) a person servicing loans made with its own funds, if no 
 more than five such loans are made in any 12-month period; 

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

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

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

    (8) 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 

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

    Subd. 3.    Conducting business under license.  No 
 person required to be licensed under this chapter may, without a 
 license, do business under a name or title or circulate or use 
 advertising or make representations or give information to a 
 person, that indicates or reasonably implies activity within the 
 scope of this chapter. 

    Subd. 4.    Applicability to banks and credit unions.  
 Except for section 58.13, this chapter does not apply to a bank, 
 savings bank, savings association, or credit union subject to 
 supervision by either a federal regulatory agency or the 
 commissioner. 

    HIST: 1998 c 343 art 1 s 4; 1999 c 151 s 34