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What Is the Bond Requirement for a Minnesota Residential Mortgage Servicer License?

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 Residential Mortgage Servicers and mortgage originators.

License requirements are:

1. Complete the application through the NMLS system and pay the applicable filing fee and license fee.
2. Provide formation documentation for applicants that are partnerships, corporations, or limited liability companies.
3. The Resident Agent or Registered Agent must be completed on the application and must match the Minnesota Secretary of State record.
4. Applicants must complete and submit the Affirmation Under Oath form.
5. Provide bank account information if the applicant will hold funds for later distribution, as a fiduciary.
6. Indicate on the application any trade names or dba’s that will be used. Mortgage servicers 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.
7. Obtain a certificate of Authority or Good Standing Certificate from the state the business was incorporated in.
8. A $100,000 surety bond is required for a servicer license. The applicant’s legal name on the bond must match exactly the name on the application. A $100,000 irrevocable letter of credit or approval by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation as a seller or services provider will waive the bond requirement.
9. If applicant answers Yes to any of the Disclosure Questions, provide complete details and provide any applicable documents.
10. Note: licensees must keep loan records (applied for, originated, serviced) and advertisements materials for a minimum of 60 months.

How Much Will This Bond Cost?

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

Did You Know?

The State of Minnesota does not require a physical office to be located in the state.

Related Links:

NMLS Registration Portal
Minnesota Residential Mortgage Servicer License Requirements
Minnesota Residential Mortgage Servicer License - New Application Checklist

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