representation by the residential mortgage originator that it is in compliance with the licensing requirements
of this chapter;
(15) claim to represent a licensee or exempt person, unless the person is an employee of the licensee or
exempt person or unless the person has entered into a written agency agreement with the licensee or exempt
person;
(16) fail to comply with the record keeping and notification requirements identified in section 58.14 or
fail to abide by the affirmations made on the application for licensure;
(17) represent that the licensee or exempt person is acting as the borrower's agent after providing the
nonagency disclosure required by section 58.15, unless the disclosure is retracted and the licensee or exempt
person complies with all of the requirements of section 58.16;
(18) make, provide, or arrange for a residential mortgage loan that is of a lower investment grade if the
borrower's credit score or, if the originator does not utilize credit scoring or if a credit score is unavailable,
then comparable underwriting data, indicates that the borrower may qualify for a residential mortgage loan,
available from or through the originator, that is of a higher investment grade, unless the borrower is informed
that the borrower may qualify for a higher investment grade loan with a lower interest rate and/or lower
discount points, and consents in writing to receipt of the lower investment grade loan;
For purposes of this section, "investment grade" refers to a system of categorizing residential mortgage
loans in which the loans are distinguished by interest rate or discount points or both charged to the borrower,
which vary according to the degree of perceived risk of default based on factors such as the borrower's credit,
including credit score and credit patterns, income and employment history, debt ratio, loan-to-value ratio,
and prior bankruptcy or foreclosure;
(19) make, publish, disseminate, circulate, place before the public, or cause to be made, directly or
indirectly, any advertisement or marketing materials of any type, or any statement or representation relating
to the business of residential mortgage loans that is false, deceptive, or misleading;
(20) advertise loan types or terms that are not available from or through the licensee or exempt person
on the date advertised, or on the date specified in the advertisement. For purposes of this clause, advertisement
includes, but is not limited to, a list of sample mortgage terms, including interest rates, discount points, and
closing costs provided by licensees or exempt persons to a print or electronic medium that presents the
information to the public;
(21) use or employ phrases, pictures, return addresses, geographic designations, or other means that
create the impression, directly or indirectly, that a licensee or other person is a governmental agency, or is
associated with, sponsored by, or in any manner connected to, related to, or endorsed by a governmental
agency, if that is not the case;
(22) violate section 82.77, relating to table funding;
(23) make, provide, or arrange for a residential mortgage loan all or a portion of the proceeds of which
are used to fully or partially pay off a "special mortgage" unless the borrower has obtained a written
certification from an authorized independent loan counselor that the borrower has received counseling on
the advisability of the loan transaction. For purposes of this section, "special mortgage" means a residential
mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or local government, or
nonprofit organization, that bears one or more of the following nonstandard payment terms which substantially
benefit the borrower: (i) payments vary with income; (ii) payments of principal or interest are not required
or can be deferred under specified conditions; (iii) principal or interest is forgivable under specified conditions;
Official Publication of the State of Minnesota
Revisor of Statutes
14MINNESOTA STATUTES 202358.13
