Minnesota mortgage brokers have already been under scrutiny for the latest increase in foreclosures. This has lead up to the state of Minnesota passing new laws designed to eliminate some of the unethical and uneducated mortgage brokers and businesses in the state. In once, the fresh state laws that have been passed override some federal government laws that are created to protect consumers.
Beginning August 1st 2007 all mortgage companies will likely be required by state law their doors open., to carry a net worth of $250,000 or a $50,000 surety bond in order to keep This law was designed specifically to remove most of the smaller mortgage companies and people practicing as a sole proprietorship. To date, over 500 mortgage companies closed their doors and doing business in the state of Minnesota have pulled their permit. That number will continue to grow as the renewal date for mortgage permits approaches us.
The biggest change in the new law is the removal of mortgage loans that are stated. Those people who are self employed may find it very hard to secure a home loan in the state of Minnesota. A federal law that allows Minnesotans to buy products of their choice is superseded by this law.
The state has also passed a law that can make it required to attend 15 hours of mortgage associated courses pertaining to mortgage ethics and standards. This law will keep the devoted, career minded originators available. This can also eliminate the opportunity for individuals to jump back into the mortgage industry with no instruction that is correct when the market makes a shift for the better.