Minnesota Governor Tim Walz recently signed into law a bill, House File 990 (HF 990), which exempts manufactured home dealers and manufactured home salespersons from the residential mortgage originator licensing requirements. HF 990 also exempts employees of manufactured home dealers and manufactured home salespersons from the mortgage loan originator licensing requirements.
Pursuant to this bill, manufactured home dealers, manufactured home salespersons, and their employees qualify for the exemption if they:
- Perform only clerical or support duties in connection with assisting consumers in filling out loan applications, but do not offer or negotiate loan terms, or hold themselves out as housing counselors;
- Do not receive any direct or indirect compensation or gain for assisting consumers with loan applications, in excess of the customary salary or commission from the employer in connection with the sales transaction; and
- Provide certain written disclosures to borrowers on a form prescribed by the Minnesota Department of Commerce and developed in consultation with the Manufactured and Modular Home Association.
The changes made by HF 990 go into effect on August 1, 2019.