Minnesota passed a bill amending the Minnesota Residential Mortgage Originator and Servicer Licensing Act (MRMOSLA). Under the bill, the MRMOSLA was amended to:
- Increase the required surety bond amounts for residential mortgage originators and servicers;
- Require mortgage servicers to maintain a surety bond in an amount that reflects the total dollar amount of unpaid principal balance for residential mortgage loans serviced in Minnesota during the preceding quarter;
- Exempt bona fide nonprofit organizations from the MRMOSLA;
- Require mortgage originators and servicers to file a quarterly mortgage call report with the NMLS; and
- Require mortgage originators to include the originator’s NMLS unique identifier on all application forms, solicitations and advertisements.
The bill also amended the definition of “conventional loan” to reference loans in an amount equal or less than the conforming loan limit established by the Federal Housing Finance Agency (rather than loans of $100,000 or less). In addition, the bill established a requirement that financial institutions maintain a comprehensive information security program, and notify the Department of Commerce in the event a “notification event” involves the nonpublic personal information of at least 500 customers. The bill went into effect August 1, 2024.
Click to view the MN SB 4097: https://www.tenaco.com/wp-content/uploads/2024/08/MN-SB-4097.pdf
