Minnesota Mortgage Loan Originator

This license is required of any individual who for compensation or gain or in the expectation of compensation or gain (i) takes a residential mortgage loan application or (ii) offers or negotiates terms of a residential mortgage loan. A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless the independent contractor loan processor or underwriter obtains and maintains a license under Chapter 58A.03, subd. 3.

Who Is Required to Have This License? Any individual who for compensation or gain or in the expectation of compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan located in Minnesota. Individuals should read Minnesota Statutes Chapter 58A before applying for the license. In addition, any loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless the independent contractor loan processor or underwriter obtains and maintains a license under Chapter 58A.03, subd. 3. Who does not need this license? • Employees of depository institutions and certain subsidiaries who are registered in the system established by the Federal Banking Agencies • Loan processors and underwriters who are employees of a mortgage originator company • Individuals that only perform real estate brokerage activities and are licensed under Minnesota Statutes Chapter 82, unless that person is compensated by a lender, mortgage broker, or other mortgage loan originator or by an agent of the lender, mortgage broker, or mortgage loan originator • Individuals solely involved in the extension of credit relating to timeshare plans, as defined in 11 USC 101(53D) • Individuals negotiating a residential mortgage loan for their own residence • Individuals negotiating a residential mortgage loan involving a member of his or her immediate family • A licensed attorney negotiating a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client • An employee of a nonprofit organization exempt from taxation under section 501 (c)(3) that is not otherwise engaged in the financing of housing for low- and moderate-income households Pre-requisites for license applications: • Criminal background check • Credit check • Testing: Must satisfy one of the following two conditions: • Passing score on the National Test Component with Uniform State Content (UST), or prior to August 1, 2018 • • Passing score on both the National and Minnesota State components of the SAFE Test. • Education: Prior to submission of the application, complete 20 hours of NMLS-approved Pre-licensure Education (PE) courses which must include at least: • 3 hours of federal law and regulations, • 3 hours of ethics which include instructions on fraud, consumer protection, and fair lending issues, and • 2 hours of training related to lending standards for the non-traditional mortgage product marketplace. The Minnesota Department of Commerce does not issue paper licenses for this license type. Licenses can be verified through the individual’s MU4 filing in NMLS or through Consumer Access. Note: Upon filing the application, the license status will be reflected in NMLS as Pending – Incomplete”. The “Pending – Incomplete” status will remain until the application is reviewed and the status is changed by the Department’s staff.