HF3437

Purpose

This bill aims to modify how certain fees and penalties on residential mortgage loans are applied and governed under Minnesota law.

Main Provisions

• The bill updates Minnesota Statutes 2024 section 58.137, subdivision 3, to change how the rules about mortgage loan fees and penalties are applied.
• It clarifies that the rules apply to residential mortgage originators located both in Minnesota and outside Minnesota.
• The bill specifies that the limitations and prohibitions in this section apply only to loans made primarily for personal, family, or household purposes.

Scope and Applicability

• Applies to residential mortgage originators regardless of whether they are located inside or outside Minnesota.
• Applies specifically to loans that are primarily for personal, family, or household use.

Changes to Existing Law

• Section 1 of the bill amends the existing statute (Minnesota Statutes 2024 section 58.137 subdivision 3) to implement the above clarifications and scope changes.

Impact and Implications

• Consumers borrowing for personal use may receive clarified protections regarding certain fees and penalties when dealing with residential mortgage originators.
• The changes broaden or specify which originators and loan types are subject to the section’s limitations and prohibitions.

Terminology and concepts (highlights)

• residential mortgage originators
• Minnesota Statutes 2024 section 58.137 subdivision 3
• Subdivision 3
• limitations and prohibitions
• loans made primarily for personal, family, or household purposes
• in-state vs out-of-state originators

Relevant Terms - residential mortgage originators - Minnesota Statutes 2024 - section 58.137 - subdivision 3 - Section 1 (amendment) - limitations - prohibitions - loans for personal use - personal, family, or household purposes - in-state - out-of-state