HF 2600 Summary

• Establishes the Minnesota S.A.F.E. Mortgage Licensing Act of 2010 requiring individuals engaged in mortgage loan origination to obtain and maintain a state license through the Nationwide Mortgage Licensing System and Registry.

• Requires mortgage loan originators to complete at least 20 hours of pre-licensing education (including 3 hours federal law, 3 hours ethics, 2 hours nontrad itional mortgage standards) and pass a written test with minimum 75 percent score.

• Mandates annual continuing education of 8 hours and requires mortgage loan originators to maintain a surety bond ranging from $100,000 to $200,000 depending on annual loan volume.

• Prohibits fraudulent practices including deceptive advertising, unlicensed business conduct, false statements about loan terms, and improper fees; violations subject to license denial, suspension, or revocation with penalties up to $25,000 per violation.

• Effective July 31, 2010, with $261,000 appropriated for fiscal year 2011 and base appropriations of $138,000 (2012) and $142,000 (2013) for implementation.