--- title: Originators Pay Attention description: The Minnesota Department of Commerce recently took a unique step and provided the mortgage origination industry with information on some of the more common statutory violations being uncovered. --- [Dan's Desk](https://www.gallatin-law.com/blog/author/dan-gallatin) - [lawyer](https://www.gallatin-law.com/blog/tag/lawyer) - [hugo](https://www.gallatin-law.com/blog/tag/hugo) - [MN](https://www.gallatin-law.com/blog/tag/mn) - [law](https://www.gallatin-law.com/blog/tag/law) - [attorney](https://www.gallatin-law.com/blog/tag/attorney) - [legal](https://www.gallatin-law.com/blog/tag/legal) [Subscribe](https://www.gallatin-law.com/blog/originators-pay-attention#) 01/05/2017 # Originators Pay Attention - - - - - [mailto:?subject=Originators%20Pay%20Attention&body=https%3A%2F%2Fwww.gallatin-law.com%2Fblog%2Foriginators-pay-attention](mailto:?subject=Originators%20Pay%20Attention&body=https%3A%2F%2Fwww.gallatin-law.com%2Fblog%2Foriginators-pay-attention) The Minnesota Department of Commerce recently took a unique step and provided the mortgage origination industry with information on some of the more common statutory violations being uncovered. For those in the industry who did not see the publication, here are the five topics published by the Department: 1. **Agency versus Non-Agency**: Failure to properly disclose Agency relationships, the Non-Agency relationships of lenders, and Advance Fee Agreements. 2. **Interest Rate Lock and Discount Point Agreements**: Failure to properly disclose the five requirements of the agreement, complete the agreement in its entirety, and include a disclaimer that the statement of terms is not an offer. 3. **Record Retention**: Failure to maintain for 60 months the business records, including advertisements, regarding residential mortgage loans applied for, originated, or serviced in the course of its business. This includes loan estimates, closing disclosures and all other loan origination documentation. 4. **Net Tangible Benefit**: Failure to demonstrate the tangible net benefit to a consumer for refinance loans and engaging in churning. 5. **Trust Funds and Advance Fees**: Failure to disclose proper advance fee contracts, deposit advance fees or escrows into a trust account. These points are all quite easily dealt with and specifically are proven (or dis-proven) by documentation. My experience of formerly working at the Department can help you avoid the horrors of a regulatory sanction. Avoid the problem as best you can in advance and let's schedule a time to review your operations and compliance. The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site. - [2017](https://www.gallatin-law.com/blog/tag/2017), - [attorney](https://www.gallatin-law.com/blog/tag/attorney), - [hugo](https://www.gallatin-law.com/blog/tag/hugo), - [law](https://www.gallatin-law.com/blog/tag/law), - [laws](https://www.gallatin-law.com/blog/tag/laws), - [lawyer](https://www.gallatin-law.com/blog/tag/lawyer), - [legal](https://www.gallatin-law.com/blog/tag/legal), - [MN](https://www.gallatin-law.com/blog/tag/mn), - [mortgage](https://www.gallatin-law.com/blog/tag/mortgage), - [origination](https://www.gallatin-law.com/blog/tag/origination), - [Minnesota Department of Commerce](https://www.gallatin-law.com/blog/tag/minnesota-department-of-commerce), - [mortgage origination](https://www.gallatin-law.com/blog/tag/mortgage-origination) ![Dan Gallatin](https://www.gallatin-law.com/hubfs/assets-mjfw/site%20images/Dans-Desk.jpg) ## [Dan Gallatin](https://www.gallatin-law.com/blog/author/dan-gallatin) Dan is a lifelong resident of Minnesota. Born in St. Paul, Dan spent many of his formative years growing up there before moving to White Bear Lake. After graduating from White Bear Lake, Dan spent four glorious years at the University of Wisconsin-Madison, earning a degree in two majors. Dan worked as a Senior Investigator at the Minnesota Department of Commerce for several years after graduating from college. During his final years Dan attended William Mitchell College of Law while still working full-time. During this exhausting 3 ½ year period Dan honed his skills in becoming an efficient, to-the-point legal practitioner. While at Madison Dan met his wife, Tonya, and together they moved to Minnesota to plant their roots. Dan and Tonya have two amazing, unique children and reside in Hugo. ### CONNECT WITH ME - ## Related Posts [04/18/2016 Regulated Professionals: Update Your License or Face Sanctions While attending law school I worked full time as senior investigator for the State of Minnesota's Department of Commerce. I primarily investigated… Read Post ](https://www.gallatin-law.com/blog/regulated-professionals-update-your-license-or-face-sanctions) [09/14/2016 Minnesota's Department of Commerce: Be Accurate, Be Honest Minnesota's Department of Commerce enforces the laws of Minnesota governing many regulated industries. Some of those industries are insurance,… Read Post ](https://www.gallatin-law.com/blog/minnesotas-department-of-commerce-be-accurate-be-honest) ### Subscribe Here! ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Dan Gallatin", "url" : "https://www.gallatin-law.com/blog/author/dan-gallatin" }, "dateModified" : "2020-08-21T22:39:33.447Z", "datePublished" : "2017-01-05T06:00:00.000Z", "headline" : "Originators Pay Attention", "mainEntityOfPage" : { "@id" : "https://www.gallatin-law.com/blog/originators-pay-attention", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.gallatin-law.com/hubfs/logos/Gallatin-Logo-654x84.png" }, "name" : "Gallatin Law, PLLC" } } ```