Minnesota permissible fees

Minnesota does not impose specific caps on individual fees such as origination, application, processing, or underwriting fees. However, Minnesota Statutes § 58.137 prohibits a residential mortgage originator from including in the principal amount of a residential mortgage loan any portion of a 'lender fee' (defined broadly to include interest, points, finance charges, fees, and other charges payable by the borrower to the originator or by the lender to a broker) exceeding 5% of the loan amount. Third-party pass-through fees (e.g., appraisal, credit report) are excluded from this cap. Additionally, prepayment penalties are restricted for prime loans under § 58.137 subd. 2. Mortgage brokers are held to a fiduciary standard under § 58.161 and may charge fees disclosed in advance, but advance fees must be held in trust and are subject to cancellation rights under § 58.16.