Here's another installment of recent regulatory action taken by the Minnesota Department of Commerce. The department regulates mortgage originators, real estate agents, appraisers, and other professions.
Real estate appraisers have faced heavy scrutiny recently. Civil penalties of up to $8,000.00 have been assessed related to work file maintenance and failure to deliver a clear and accurate report. Geographically, the scope spans from the Iron Range to Brooklyn Park to New London. This is not a great surprise given the rapid pace and high volume of transactions that were happening in recent years. Those files are not getting exposed for critical review.
In a fairly shocking outcome, a mortgage originator licensee was merely suspended and paid a civil penalty "following his conviction" of hiring a prostitute under the age of 18. Personally, I would have expected such a conviction to result in revocation. But, the department decided to let the person keep the license so long as he complies with the Consent Order. Under certain circumstances the license can be revoked if the licensee does not comply with his agreement.
Somewhat surprisingly, only 3 enforcement actions were taken recently against mortgage licensees.
Real estate agents had a tough run lately. There were a number of enforcement actions related to failure to get required paperwork completed, not disclosing the effect of dual agency, rummaging through a person's belongings (presumably during a showing), and failing to report civil judgments.
Keep your eyes open and stay diligent on your paperwork. If someone complains, don't represent yourself. The department wants to trick you into self-incrimination. Be honest, but careful, and get representation!
