Under the Minnesota S.A.F.E. Act, which action is permissible for a mortgage loan originator?

Charging a processing fee is permissible for a mortgage loan originator under the Minnesota S.A.F.E. Act because this fee is typically associated with the administrative costs required to process a loan application. It is a common practice in the industry to charge borrowers for processing their applications, which can cover necessary services such as underwriting, document preparation, and other administrative costs.

The S.A.F.E. Act emphasizes transparency and fairness in the practices of mortgage loan originators. By allowing processing fees, the Act supports a structured approach to fees that helps consumers understand the costs involved in obtaining a mortgage.

In contrast, other actions such as collecting advance fees, negotiating commissions with lenders, or offering gifts to borrowers could raise ethical concerns or may violate regulations set forth by the Act, which seeks to protect consumers and promote fair lending practices. These actions must align with specific regulatory guidelines to avoid any conflicts of interest or deceptive practices.