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STATE OF MINNESOTA
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Is a license required? |
Yes. Loan modification services must be licensed as if they were mortgage servicers. Minnesota Statute 58.02(Attached as Schedule A) Sub. 20/Sub22 states that a residential mortgage servicer means “[any] person who engages in the [...] means through any medium or mode of communication the collection or remittance of, or the right or obligation to collect or remit for a lender, mortgagee, note owner, noteholder, or for a person's own account, payments, interest, principal, and escrow items such as insurance and taxes for property subject to a residential mortgage loan.” 58.04 states that “No person shall act as a residential mortgage originator, or make residential mortgage loans without first obtaining a license from the commissioner according to the licensing procedures provided in this chapter.” |
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State
specific loan modification law? |
None. |
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Advantages
of becoming a licensed Mortgage Servicer? |
None. It is mandatory. |
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Penalties
for operating in the state without a license: |
As provided in 45.027 Subdivision 6(Not attached, no relevance besides the fine), “The commissioner may impose a civil penalty not to exceed $10,000 per violation upon a person who violates any law, rule, or order related to the duties and responsibilities entrusted to the commissioner unless a different penalty is specified” |
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Is an
advanced fee permitted? |
There is no explicit prohibition on advance fees in Minn. Stat. 58. |
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Is a
written agreement required? |
There is no explicit requirement for a contract, however Minn. Stat. 58 makes many references to requirements relating to contracts, implying that one is required. |
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Other
noteworthy information? |
58.16 Subd 3. states that "A borrower who pays an advance fee, or who enters into a contract for residential mortgage services as set forth in subdivisions 1 and 2, has an unconditional right to rescind the contract for residential mortgage origination services at any time until midnight of the third business day after the day on which the contract is signed." State regulators may apply this to servicers, even though the section only applies to originators. |
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Minnesota
Statutes |
Minn. Stat. 58.: Ctrl + Click Here License application: Ctrl + Click Here |