Minnesota Mortgage Broker License Guide

In Minnesota, anyone engaged in the mortgage business, whether an entity or individual, must obtain a license with the state. All mortgage licenses are regulated and supervised by the Minnesota Department of Commerce.

The mortgage license application process is handled by the Nationwide Mortgage Licensing System (NMLS). The system allows mortgage brokers and loan originators to apply or update licenses online.

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There are three major state license types in MN: Company, Branch, and Individual. Each license type depends on the work you will perform. The mortgage licenses are further subdivided into Mortgage Loan Brokers, Supervised Lenders, and Loan Originators.

In this guide, we’ll cover the most common licenses only. You can review the full list on the NMLS website.

Most Common Company Licenses

• Accelerated Mortgage Payment Provider License - the license is required of any person or entity who, on behalf of borrowers, receives funds to make mortgage payments to lenders, with the intention of exceeding minimum payment obligations under the terms of the indebtedness. Please note that the term does not include debt management service providers and mortgage lenders/servicers. For additional information, you may visit the State of Minnesota e-licensing page.
• Residential Mortgage Originator License - permits companies to offer, solicit, or accept residential mortgage loan applications and/or make residential mortgage loans. A Residential Mortgage Originator includes mortgage brokers and mortgage lenders.
• Residential Mortgage Servicer License - allows companies to service residential mortgage loans.

Most Common Individual Licenses

• Mortgage Loan Originator License - allows individuals to take mortgage loan applications (and/or negotiate the terms of the loan) for dwellings and residential properties located within the state.

All license applications are to be submitted online via NMLS. Please note that some agency-specific documentation must be sent directly to Department of Commerce, Financial Institutions Division, 85 7th Place East, Suite 500, St. Paul, MN 55101.

For assistance and additional information regarding the requirements, you may contact the Department at (651) 539-1600 or [email protected].

For questions in regards to NMLS, please contact NMLS call center at (855) 665-7123.

In Minnesota, passing an exam is obligatory for some, but not all licenses. To obtain an MN Mortgage Loan Originator license, you must complete an education course and pass an examination.

Exams for Individual Licenses

• Mortgage Loan Originator License - To obtain an individual license in Minnesota, you are required to complete an NMLS-approved education course of at least 20 hours. For more information regarding the course, as well as a list of approved providers, please visit the NMLS Education page.

  After completing the course, you can enroll for the exam and pay the examination fee on NMLS. To schedule an exam date visit your NMLS profile or contact the exam administrator Prometric at (877) 671-6657.

  The NMLS testing page will provide you with additional information on how to schedule and take the Mortgage Loan Originator test.

Bonds for Company Licenses

• Accelerated Mortgage Payment Provider License - Applicants are required to upload and mail a surety bond in the amount of $100,000.
• Residential Mortgage Originator License - All applicants are required to upload and mail an original surety bond. The amount of the bond depends on the applicant’s loan origination volume in MN in the previous calendar year.
  • $100,000 surety bond if the applicant has no loan volume in MN from the previous year or if the loan volume is between 0 - $5,000,000.
  • $125,000 surety bond for loan volume between $5,000,000.01 - $10,000,000.
  • $150,000 surety bond for loan volume between $10,000,000.01 - $25,000,000.
  • $200,000 surety bond for loan volume that exceeds $25,000,000.
• Residential Mortgage Servicer License - Each Mortgage Servicer license applicant must submit an irrevocable letter of credit or an original surety bond of $100,000 unless approved as a seller/servicer by the FNMA or FHLMC.

Bonds for Individual Licenses

• Mortgage Loan Originator License - All individual license applicants must be covered by a surety bond. Unless covered under the employer’s company bond, MLO applicants must furnish a Residential Mortgage Originator bond. The bond amount depends on the applicant’s loan origination volume in the previous calendar year (within MN).
  • $100,000 surety bond if the applicant has no loan volume in MN from the previous year or if the loan volume is between 0 - $5,000,000.
  • $125,000 surety bond for loan volume between $5,000,000.01 - $10,000,000.
  • $150,000 surety bond for loan volume between $10,000,000.01 - $25,000,000

All fees are non-refundable and must be submitted through NMLS.

Fees for Company Licenses

• Accelerated Mortgage Payment Provider License
  • $250 total license costs.
• Residential Mortgage Originator License
  • $1,100 total license costs.
• Residential Mortgage Servicer License
  • $600 total license costs.

Fees for Individual Licenses

• Mortgage Loan Originator License
  • $120 license fee.
  • $15 credit report fee.
  • $36.25 background check.
  • $100 exam fee.