This bill proposes amendments to Minnesota’s financial institution regulations, specifically modifying notice requirements for conventional mortgage loan documents under Minnesota Statutes 2024, section 47.20, subdivision 8.

Key Changes:

1. Formatting Requirements:

   • A promissory note and mortgage must be printed in at least 8-point type, 0.075-inch computer type, or elite-size typewritten numerals, or be legibly handwritten.

2. Providing Conformed Copies:

   • Lenders must provide borrowers with a conformed copy of the promissory note and mortgage at signing or within a reasonable time after recording.

3. Default Notification Options:

   • If foreclosing, the lender must notify the borrower of any default via:
     • Certified or first-class mail to the mortgaged property (or an alternate address designated in writing by the borrower), or
       
     • Email or electronic communication, if both parties agree in writing.
       
   • Exception: This notice requirement does not apply if the borrower sells the property without lender consent.

4. Default Notice Content Requirements:

   • The lender's default notice must include:
     1. The nature of the default
     2. How to cure the default
     3. A deadline (at least 30 days from mailing) to fix the issue
     4. A warning that non-compliance could lead to acceleration & foreclosure
     5. Borrower’s right to reinstate the mortgage
        
     6. Borrower’s right to challenge the default in court

5. Temporary Compliance Exemption:

   • Compliance with these requirements is optional for loans dated between August 1, 2024, and July 31, 2025.

Summary:

This bill updates notice and format requirements for conventional mortgage loans in Minnesota, allowing for electronic default notices with borrower consent while ensuring borrowers are informed of foreclosure risks. However, lenders are temporarily exempt from these new requirements for a one-year period.