Mortgage Loan Originators (MLOs) who are employees of an exempt entity as defined in Minnesota Statute 58A.02, subd. 12(1) are not required to maintain a license through the State of Minnesota but must register through NMLS.
Examples of a registered MLO include: an employee of
a depository institution,
a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or
an institution regulated by the Farm Credit Administration.
MLOs employed with an industrial loan and thrift company, as licensed under Minnesota Statute §53, or regulated lenders under Minnesota Statute §56, are NOT exempt and MUST hold licensure through the state.
Mortgage Originators/Mortgage Servicers who are employees as defined in Minnesota Statute 58.04, subd. 2 through 4 are not required to maintain a license through the State of Minnesota but must register through NMLS.
Beginning August 1, 1999, no person shall engage in activities or practices that fall within the definition of "servicing a residential mortgage loan" under section 58.02, subdivision 22, without first obtaining a license from the commissioner according to the licensing procedures provided in this chapter.
The following persons are exempt from the residential mortgage servicer licensing requirements:
a person licensed as a residential mortgage originator;
an employee of one licensee or one person holding a certificate of exemption based on an exemption under this subdivision;
a person servicing loans made with its own funds, if no more than three such loans are made in any 12-month period;
a financial institution as defined in section 58.02, subdivision 10;
an agency of the federal government, or of a state or municipal government;
an employee or employer pension plan making loans only to its participants;
a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of a specific order issued by a court of competent jurisdiction; or
a person exempted by order of the commissioner.
Subd. 3.Conducting business under license.
No person required to be licensed under this chapter may, without a license, do business under a name or title or circulate or use advertising or make representations or give information to a person, that indicates or reasonably implies activity within the scope of this chapter.
No person licensed under this chapter may do business under more than one name or title.
Subd. 4.Applicability to banks and credit unions.
Except for sections 58.13 and 58.137, subdivisions 2 and 3, this chapter does not apply to a bank, savings bank, savings association, or credit union, or to any subsidiary of any of them, that is subject to supervision by either a federal regulatory agency or the commissioner.
Minnesota Session Law 2019, Chapter 58 added an exemption to licensing requirements for residential mortgage originators to allow for conformity with federal truth in lending requirements. Chapter 58 amends Minnesota Statutes 2018, sections 58.04, subdivision 1; 58A.03, subdivision 2.
While not specifically required by law, it is recommended that this form should be printed on paper that is a color other than white so it stands out from other forms that are provided to prospective home buyers.