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Do Residential Mortgage Originators in Minnesota Need a License and Surety Bond?

A house for a for sale sign

The State of Minnesota, Department of Commerce, through the National Mortgage Licensing System, is tasked with the licensing of residential mortgage servicers and mortgage loan originators.

Minnesota Statutes Chapter 58 Section 04, defines the licensing of a residential mortgage servicer and mortgage originator.

License requirements:

1. Complete education and testing requirements.
2. Complete the application through the NMLS system and pay the applicable filing fee and license fee.
3. Provide formation documentation for applicants that are partnerships, corporations, or limited liability companies.
4. The Resident Agent or Registered Agent must be completed on the application and must match the Minnesota Secretary of State record.
5. Complete the Affirmation Under Oath form and submit with application.
6. Provide bank account information if the applicant will be holding client funds for future distribution.
7. Indicate on the application any trade names or dba’s that will be used. Mortgage originators may only use one trade name, but are not limited on the number of dba names. A separate license is required for each dba or trade name.
8. Obtain a certificate of Authority or Good Standing Certificate. This document is issued by the state in which the business was incorporated in.
9. A surety bond is required based on the total loan volume of the previous 12 months:

Dollar amount of Closed Loan ValueSurety Bond Required
$0 - $5,000,000$100,000
$5,000,000.01 to $10,000,000$125,000
$10,000,000.01 to $25,000,000$150,000
Over $25,000,000$200,000

10. If applicant answers Yes to any of the Disclosure Questions, provide a detailed explanation and provide any applicable documents.
11. Note: licensees must keep loan records (applied for, originated, serviced) and materials used for advertisement for a minimum of 60 months.

How Much Will This Bond Cost?

The premium that you pay for a Minnesota Residential Mortgage Originator Surety Bond is dependent on credit and personal and/or business financial statements.

Did You Know?

That State of Minnesota requires residential mortgage originators to renew their license annually by December 15.

Related Links:

NMLS - Minnesota Annual Renewal Information
NMLS Registration Portal
Minnesota Mortgage Loan Originator License Requirements
Minnesota Residential Mortgage Originator License - New Application Checklist

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