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HF1865 (Legislative Session 94 (2025-2026))

Loans that satisfy the federal qualified mortgage points and fees threshold excluded from the definition of conventional loan.

Related bill: SF2296

AI Generated Summary

This bill, H.F. No. 1865, introduced in the Minnesota House of Representatives, seeks to amend Minnesota Statutes 2024, Section 47.20, Subdivision 2, regarding the definition of a "conventional loan."

Key Provisions:

  • It excludes loans that comply with the federal qualified mortgage points and fees threshold from being classified as "conventional loans."
  • The bill modifies existing definitions related to real estate financing, including terms like "conventional loan," "actual closing costs," and "finance charge."
  • Expands upon the types of loans covered under state regulations by specifying which loans qualify and which do not as conventional loans based on the fees and points charged.

Impact and Purpose:

  • The bill aligns state law with federal mortgage regulations by ensuring that loans exceeding certain federal thresholds are not treated as conventional loans.
  • It may influence lenders' requirements and borrower eligibility for specific loan classifications.
  • This change could particularly affect the cost, structure, and availability of mortgage-related financing in Minnesota.

The bill has been referred to the Committee on Commerce Finance and Policy for further review.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 04, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy
March 04, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy
March 16, 2025HouseFloorActionCommittee report, to adopt as amended
March 16, 2025HouseFloorActionSecond reading

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill relates to the modification of the definition of a conventional loan under section 47.20, subdivision 2, by excluding certain loans from this definition based on their compliance with federal mortgage points and fees threshold.",
      "modified": [
        "Exclusion of loans that satisfy the federal qualified mortgage points and fees threshold from the definition of a conventional loan."
      ]
    },
    "citation": "47.20",
    "subdivision": "subdivision 2"
  }
]

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