Posted by jojo_MN on 8/31/09 10:26am
Msg #302358

Loan Modifications - Minnesota law

I just got off the phone with Robin Brown with the Division of Financial Institutions. All companies that work with loan modifications of any type need to have a Mortgage Originators license. Attorneys are NOT exempt from this law.

To check to see if a company is licensed go to this website: http://www.commerce.state.mn.us/LicenseLookupMain.html

Scroll down to and choose "Mortgage Originators/Servicers"
Choose a Board - "Mortgage"
Then "Search License". When you get to this screen, under license type, choose "Mortgage Originator" and enter the name of the company.

If they don't come up, they aren't licensed to do business in Minnesota. She said this is updated daily.

If you have any questions, you should contact her. Her direct # is (651) 282-9855.

Reply by jojo_MN on 8/31/09 10:29am
Msg #302359

Minnesota law - Also, illegal to charge upfront fees here n/m

Reply by Linda_H/FL on 8/31/09 10:37am
Msg #302361

Re: Loan Modifications - Minnesota law...so what you're

saying is "licensed" attorneys who work with borrowers to deal with their lenders to modify their mortgages have to have an originator's license, too, in order to intervene for their clients? Sounds rather extreme to me.....basically saying an attorney isn't qualified enough (although I admit some I've known probably weren't)..

Reply by jojo_MN on 8/31/09 10:56am
Msg #302362

Yep. That's what I'm saying. That's why I wanted to

clarify the information with the state. I spoke with Robin Brown and told her I was going to post the findings on Notary Rotary because there has been so much discussion on loan mods and I've been contacted by so many different companies. Don't want to be any part of fraud.

Reply by Linda_H/FL on 8/31/09 11:08am
Msg #302364

Re: Yep. That's what I'm saying....wow... n/m

Reply by Jim/AL on 8/31/09 11:11am
Msg #302365

probably just as many crooked attys., as loan mod cos.,lol n/m

Reply by MW/VA on 8/31/09 12:43pm
Msg #302371

If you do a search under "SAFE Act", you will see that a federal law went into effect July 1, 2008.
The states have been getting on board with this over the last year. Most states now require licensing for anyone involved in the mortgage process. Hindsight is 20/20, as they say. A lot of what went on in the mortgage meltdown probably could have been avoided with licensing requirements. There were no requirements for LO's, brokers, etc. Any "used car" salesman could cash in on the money to be made selling mortgage loans. IMO, we're all paying a heavy price for the lack of licensing.
It's great that you have a website to check if a particular company is licensed to do business in MN.

Reply by jnew on 8/31/09 2:07pm
Msg #302379

I have been reading up on the web about these companies. Although they are named and are under the auspices of a legal services it is questioned how much legal services you are actually receiving. These companies are recruiting out-of-work mortgage brokers and out-of-work notaries to solicit business. The brokers are derogatorily referred to as cockbrokers and the company's service is called a rescam (for rescamortization) according to the blogs. It is impossible for an independent signing agent to determine whether the service is legitimate without checking out the licensing, but the practices are definitely not ethical. A company by any other name....if it has feathers, quacks and has web feet, to me it's a duck no matter what others want to call it. I have become convinced.

Reply by MW/VA on 8/31/09 2:13pm
Msg #302381

Yes, you are referring to the loan modification application scams. There have been many posts on this forum about these & some particular companies involved in it. IMO, we need to be careful in the useage of terms, whether loan mods (available through the lender, usually) or loan mod APPS. There is a huge difference between the two.

Reply by SharonMN on 8/31/09 3:24pm
Msg #302393

I have noticed ads on Craigslist for "local lawyers wanted" which appear to be national remod companies looking for someone who's passed the bar to be their lawyer on paper.

Personally, I stay away from anything where I supposed to act as someone's representative. I'll be the legal courier/notary but I don't do applications (for mods, RESPAs, or otherwise). I-9 verifications, or anything else like that because I'm not trained by or an employee of the company I'm supposed to represent.