S.F. No. 2876 Summary

• Increases net worth requirements for money transmitter licensees: from $25,000 to $100,000 for three or fewer locations; from $50,000 to $200,000 for more than three but fewer than seven locations; and from $100,000 to $400,000 plus $200,000 per additional location (up to $2,000,000 maximum) for more than six locations.

• Requires money transmitter licensees to maintain physical presence in the United States with a mailing address and registered agent, and to notify the commissioner within 30 days of any material changes in facts or application documents.

• Increases surety bond and security device requirements for money transmitter applicants using the same tiered structure as net worth requirements, with amounts rising from $25,000 to $100,000 for basic applicants and up to $2,000,000 for large operations.

• Requires purchasers of 10 percent or more ownership in a licensee to notify the commissioner at least 30 days in advance and submit a completed license application, with commissioner discretion to waive the requirement if no public risk exists.

• Updates references to the Nationwide Mortgage Licensing System terminology and clarifies mortgage loan originator licensing provisions including continuing education requirements of at least eight hours annually (three federal law, two ethics, two nontraditional mortgage products, and one Minnesota state law and rules).