Does the state require a physical location within the state?
A physical location in the state is not required in order to hold a mortgage originator license in Minnesota.

Is there individual loan officer licensing?
No.

What are lenders, brokers and loan officers called?
Minnesota uses the term "residential mortgage originator" which includes both mortgage lenders and mortgage brokers.

What is the cost of a license? Surety bond? Are there net worth requirements?
Persons wishing to originate and broker residential mortgage loans, regardless of lien position, must obtain a Minnesota residential mortgage originator and servicing license from the Commissioner of Commerce under the Minnesota Residential Mortgage Originator and Servicer Licensing Act. The term residential mortgage originator includes both mortgage lenders and mortgage brokers. The fee for the initial residential mortgage originator application is $1,125. Licenses must be renewed by August 1 of each odd-numbered year. The renewal fee for a mortgage originator license is $500. Licensed mortgage originators are required to hold a $50,000 surety bond and have a $250,000 minimum net worth. The surety bond requirements do not apply to mortgage originators who are approved as seller/servicers by the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).

Under Minnesota's Regulated Loan Act, a company may not engage in the business of making loans of $100,000 or less and charge interest in excess of the state's usury limit. The Regulated Loan Act covers subordinate lien mortgages. Lenders should check too see if they would fall under the licensing requirements of the Regulated Loan Act based on their operations.

Is there a pre-licensing education requirement? Is there a test?
No.

Is there a CE requirement?
Originators must meet a 15 hour continuing education requirement starting March 1, 2008.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
The term residential mortgage originator used in the Minnesota Residential Mortgage Originator and Servicer Licensing Act includes both mortgage lenders and mortgage brokers.

Are there any state specific high cost loan provisions?
The Minnesota High-Cost Home Loan Law became effective January 1, 2003, and was amended effective April 20, 2007. The law defines specific terms, regulates certain fees and charges and regulates permissible prepayment penalties. The law does not define any high cost thresholds.

Are there any state specific predatory lending laws?
See the high cost loan provisions.

Closing practices – attorney or title state? Wet or dry settlement?
Minnesota is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
A license under the Regulated Loan Act is required in order to make second mortgage loans and home equity lines of credit of $100,000 or less with an interest rate in excess of the usury limit. See the above section on licensing.

Who is the regulator and what is their contact information?
Department of Commerce
Division of Financial Institutions
85 7th Place East, Suite 500
St. Paul, MN 55101
Phone: (651) 282-9855
www.state.mn.us


DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


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