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.
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 Value Surety 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.
The premium that you pay for a Minnesota Residential Mortgage Originator Surety Bond is dependent on credit and personal and/or business financial statements.
That State of Minnesota requires residential mortgage originators to renew their license annually by December 15.