1.1.................... moves to amend H.F. No. 2600 as follows:
1.2Page 1, after line 5, insert:

1.5Page 6, after line 3, insert:

1.6    "Sec. 4. [58A.045] TERM OF LICENSE AND FEES.
1.7    Subdivision 1. Term. Licenses for mortgage loan originators issued under this
1.8chapter expire on December 31 and are renewable on January 1 of each year after that date.
1.9    Subd. 2. Fees. The following fees must be paid to the commissioner:
1.10    (1) for a mortgage loan originator license, $200; and
1.11    (2) for a renewal mortgage loan originator license, $100."
1.12Page 17, line 19, delete "act" and insert "article"
1.13Page 17, after line 19, insert:


1.17    Section 1. Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:
1.18    Subdivision 1. Residential mortgage originator licensing requirements. (a)
1.19No person shall act as a residential mortgage originator, or make residential mortgage
1.20loans without first obtaining a license from the commissioner according to the licensing
1.21procedures provided in this chapter.
1.22    (b) A licensee must be either a partnership, limited liability partnership, association,
1.23limited liability company, corporation, or other form of business organization, and must
1.24have and maintain at all times one of the following: approval as a mortgagee by either the
1.25federal Department of Housing and Urban Development or the Federal National Mortgage
2.1Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety
2.2bond or irrevocable letter of credit in the amount of $50,000 amounts prescribed under
2.3section 58.08. Net worth, net of intangibles, must be calculated in accordance with
2.4generally accepted accounting principles.
2.5    (c) The following persons are exempt from the residential mortgage originator
2.6licensing requirements:
2.7    (1) a person who is not in the business of making residential mortgage loans and who
2.8makes no more than three such loans, with its own funds, during any 12-month period;
2.9    (2) a financial institution as defined in section 58.02, subdivision 10;
2.10    (3) an agency of the federal government, or of a state or municipal government;
2.11    (4) an employee or employer pension plan making loans only to its participants;
2.12    (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of
2.13a specific order issued by a court of competent jurisdiction; or
2.14    (6) a person exempted by order of the commissioner.

2.15    Sec. 2. Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended
2.16to read:
2.17    Subd. 2. Application contents. (a) The application must contain the name and
2.18complete business address or addresses of the license applicant. The license applicant
2.19must be a partnership, limited liability partnership, association, limited liability company,
2.20corporation, or other form of business organization, and the application must contain the
2.21names and complete business addresses of each partner, member, director, and principal
2.22officer. The application must also include a description of the activities of the license
2.23applicant, in the detail and for the periods the commissioner may require.
2.24    (b) A residential mortgage originator applicant must submit one of the following:
2.25    (1) evidence which shows, to the commissioner's satisfaction, that either the federal
2.26Department of Housing and Urban Development or the Federal National Mortgage
2.27Association has approved the residential mortgage originator applicant as a mortgagee;
2.28    (2) a surety bond or irrevocable letter of credit in the amount of not less than
2.29$50,000 in a form approved by the commissioner, issued by an insurance company or bank
2.30authorized to do so in this state. The bond or irrevocable letter of credit must be available
2.31for the recovery of expenses, fines, and fees levied by the commissioner under this chapter
2.32and for losses incurred by borrowers. The bond or letter of credit must be submitted with
2.33the license application, and evidence of continued coverage must be submitted with each
2.34renewal. Any change in the bond or letter of credit must be submitted for approval by the
2.35commissioner within ten days of its execution; or
3.1    (3) a copy of the residential mortgage originator applicant's most recent audited
3.2financial statement, including balance sheet, statement of income or loss, statements of
3.3changes in shareholder equity, and statement of changes in financial position. Financial
3.4statements must be as of a date within 12 months of the date of application. a surety bond
3.5that meets the requirements of section 58.08, subdivision 1a.
3.6    (c) The application must also include all of the following:
3.7    (1) an affirmation under oath that the applicant:
3.8    (i) is in compliance with the requirements of section 58.125;
3.9    (ii) will maintain a perpetual roster of individuals employed as residential mortgage
3.10originators, including employees and independent contractors, which includes the dates
3.11that mandatory testing, initial education, and continuing education were completed. In
3.12addition, the roster must be made available to the commissioner on demand, within three
3.13business days of the commissioner's request;
3.14    (iii) (ii) will advise the commissioner of any material changes to the information
3.15submitted in the most recent application within ten days of the change;
3.16    (iv) (iii) will advise the commissioner in writing immediately of any bankruptcy
3.17petitions filed against or by the applicant or licensee;
3.18    (v) (iv) will maintain at all times either a net worth, net of intangibles, of at least
3.19$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000
3.20$100,000;
3.21    (vi) (v) complies with federal and state tax laws; and
3.22    (vii) (vi) complies with sections 345.31 to 345.60, the Minnesota unclaimed
3.23property law;
3.24    (2) information as to the mortgage lending, servicing, or brokering experience of the
3.25applicant and persons in control of the applicant;
3.26    (3) information as to criminal convictions, excluding traffic violations, of persons in
3.27control of the license applicant;
3.28    (4) whether a court of competent jurisdiction has found that the applicant or persons
3.29in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
3.30misrepresentation, or deceit in performing an act for which a license is required under
3.31this chapter;
3.32    (5) whether the applicant or persons in control of the applicant have been the subject
3.33of: an order of suspension or revocation, cease and desist order, or injunctive order, or
3.34order barring involvement in an industry or profession issued by this or another state or
3.35federal regulatory agency or by the Secretary of Housing and Urban Development within
3.36the ten-year period immediately preceding submission of the application; and
4.1    (6) other information required by the commissioner.

4.2    Sec. 3. Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to
4.3read:
4.4    Subd. 1a. Residential mortgage originators. (a) An applicant for a residential
4.5mortgage originator license must file with the department a surety bond in the amount of
4.6$100,000, issued by an insurance company authorized to do so in this state. The bond
4.7must cover all mortgage loan originators who are employees or independent agents of
4.8the applicant. The bond must be available for the recovery of expenses, fines, and fees
4.9levied by the commissioner under this chapter and for losses incurred by borrowers as
4.10a result of a licensee's noncompliance with the requirements of this chapter, sections
4.11325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities
4.12regulated by this chapter.
4.13    (b) The bond must be submitted with the originator's license application and
4.14evidence of continued coverage must be submitted with each renewal. Any change in the
4.15bond must be submitted for approval by the commissioner, within ten days of its execution.
4.16The bond or a substitute bond shall remain in effect during all periods of licensing.
4.17    (c) Upon filing of the mortgage call report as required by section 58A.17, a licensee
4.18shall maintain or increase its surety bond to reflect the total dollar amount of the closed
4.19residential mortgage loans originated in this state in the preceding year in accordance
4.20with the table in this paragraph. A licensee may decrease its surety bond in accordance
4.21with the table in this paragraph if the surety bond required is less than the amount of the
4.22surety bond on file with the department.

4.23 4.24	Dollar Amount of Closed Residential Mortgage Loans	Surety Bond Required
4.25	$0 to $5,000,000	$100,000
4.26	$5,000,000.01 to $10,000,000	$125,000
4.27	$10,000,000.01 to $25,000,000	$150,000
4.28	Over $25,000,000	$200,000

4.29    For purposes of this subdivision, "mortgage loan originator" has the meaning given
4.30the term in section 58A.02, subdivision 7.

4.31    Sec. 4. Minnesota Statutes 2008, section 58.09, is amended to read:
4.3258.09 TERM OF LICENSE.
4.33    Initial Licenses for residential mortgage originators and residential mortgage
4.34servicers issued under this chapter expire on July 31, 2001, December 31 and are
4.35renewable on August 1, 2001, and on August 1 January 1 of each odd-numbered year
5.1after that date. A new licensee whose license expires less than 12 months from the date
5.2of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in
5.3section 58.10, subdivision 1, clause (1) or (3).

5.4    Sec. 5. Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:
5.5    Subdivision 1. Amounts. The following fees must be paid to the commissioner:
5.6    (1) for an initial a residential mortgage originator license, $2,125 $1,000, $50 of
5.7which is credited to the consumer education account in the special revenue fund;
5.8    (2) for a renewal license, $1,125 $500, $50 of which is credited to the consumer
5.9education account in the special revenue fund;
5.10    (3) for an initial a residential mortgage servicer's license, $1,000 $500;
5.11    (4) for a renewal license, $500 $250; and
5.12    (5) for a certificate of exemption, $100.

5.13    Sec. 6. Minnesota Statutes 2008, section 58.11, is amended to read:
5.1458.11 LICENSE RENEWAL.
5.15    Subdivision 1. Term. Licenses are renewable on August 1, 2001, and on August 1
5.16January 1 of each odd-numbered year after that date.
5.17    Subd. 2. Timely renewal. (a) A person whose application is properly and timely
5.18filed who has not received notice of denial of renewal is considered approved for renewal
5.19and the person may continue to transact business as a residential mortgage originator or
5.20servicer whether or not the renewed license has been received on or before August January
5.211 of the renewal year. Application for renewal of a license is considered timely filed if
5.22received by the commissioner by, or mailed with proper postage and postmarked by, July
5.23December 15 of the renewal year. An application for renewal is considered properly filed
5.24if made upon forms duly executed and sworn to, accompanied by fees prescribed by this
5.25chapter, and containing any information that the commissioner requires.
5.26    (b) A person who fails to make a timely application for renewal of a license and
5.27who has not received the renewal license as of August January 1 of the renewal year is
5.28unlicensed until the renewal license has been issued by the commissioner and is received
5.29by the person.
5.30    Subd. 3. Contents of renewal application. Application for the renewal of an
5.31existing license must contain the information specified in section 58.06, subdivision 2;
5.32however, only the requested information having changed from the most recent prior
5.33application need be submitted.
6.1    Subd. 4. Cancellation. A licensee ceasing an activity or activities regulated by this
6.2chapter and desiring to no longer be licensed shall so inform the commissioner in writing
6.3and, at the same time, surrender the license and all other symbols or indicia of licensure.
6.4The licensee shall include a plan for the withdrawal from regulated business, including a
6.5timetable for the disposition of the business.

6.6    Sec. 7. ASSESSMENT.
6.7    The commissioner may levy a pro rata assessment on institutions licensed under
6.8Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce
6.9for administering the licensing and registration requirements of Minnesota Statutes,
6.10section 58A.10. The assessment amount must be determined by dividing those costs by
6.11the number of licensees.
6.12    The commissioner shall levy the assessments and notify each institution of the
6.13amount of the assessment being levied by September 30, 2010. The institution shall pay
6.14the assessment to the department no later than November 30, 2010. If an institution fails
6.15to pay its assessment by this date, its license may be suspended by the commissioner
6.16until it is paid in full.
6.17    This section expires December 1, 2010.

6.18    Sec. 8. RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS;
6.19TRANSITIONAL LICENSE FEE AND TERMS.
6.20    A residential mortgage originator licensee and a residential mortgage service
6.21licensee operating under a valid license under Minnesota Statutes 2008, chapter 58,
6.22with an expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a
6.23residential mortgage originator, and $100 for a residential mortgage servicer. The prorated
6.24license renewal fee must be paid by December 31, 2010, and such payment extends the
6.25license term until December 31, 2011.

6.26    Sec. 9. REPEALER.
6.27Minnesota Statutes 2009 Supplement, section 58.126, is repealed.

6.28    Sec. 10. EFFECTIVE DATE.
6.29    This article is effective July 31, 2010."
6.30Renumber the sections in sequence and correct the internal references
6.31Amend the title accordingly