Minnesota Modifies Provisions Regarding Licensing Requirements
The state of Minnesota modified its provisions relating to residential mortgage originators licensing requirements that include licensing exemptions. These provisions are effective on August 1, 2019.
The amendment exempts a manufactured home dealer or a manufactured home salesperson from the residential mortgage originator licensing requirements where the manufactured home dealer or a manufactured home salesperson:
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performs only clerical or support duties in connection with assisting a consumer in filling out a residential mortgage loan application but does not in any way offer or negotiate loan terms, or hold themselves out as a housing counselor;
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does not receive any direct or indirect compensation or gain from any individual or company for assisting consumers with a residential mortgage loan application, in excess of the customary salary or commission from the employer in connection with the sales transaction; and
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discloses to the borrower in writing:
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if a corporate affiliation with a lender exists;
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if a corporate affiliation with a lender exists, that the lender cannot guarantee the lowest or best terms available and the consumer has the right to choose their lender; and
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if a corporate affiliation with a lender exists, the name of at least one unaffiliatedlender.
The disclosures required above must be made on a one-page form prescribed by the Commissioner and developed in consultation with the Manufactured and Modular Home Association.
The amendment defines “housing counselor” as an individual who provides assistance and guidance about residential mortgage loan terms including rates, fees, or other costs.
Rhona Kyeyune, LLM, is a regulatory compliance consultant with CLA. She is a graduate of Makerere University and earned her master of laws at Boston University School of Law.
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