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SF2296 (Legislative Session 94 (2025-2026))

Federal qualified mortgage points and fees threshold satisfying loans exclusion from the definition of a conventional loan provision

Related bill: HF1865

AI Generated Summary

This bill (Senate File No. 2296) proposes an amendment to Minnesota Statutes, section 47.20, subdivision 2, related to the definition of a "conventional loan." The core change in the bill is to exclude loans that meet the federal qualified mortgage points and fees threshold from being classified as conventional loans.

Key Provisions:

  1. Definition Update: The bill revises the existing definition of "conventional loan" by explicitly stating that loans with points and fees exceeding the thresholds specified under federal regulations (12 CFR 1026.43(e)(3)) should not be classified as conventional loans.
  2. Clarifications of Loan-Related Terms: The amendment also includes terminology refinements about various aspects of lending, such as actual closing costs, service charges, and commitments made by the lender regarding interest rates.
  3. Scope and Applicability: The definitions encompass various lending scenarios, including residential unit loans and cooperative apartment loans, ensuring compliance with the statutory framework of state and federal mortgage regulations.

Purpose of the Bill:

This amendment aligns Minnesota's loan classification system with federal mortgage regulations by ensuring that loans exceeding federal points and fees thresholds do not qualify as "conventional loans." This may help regulate lending practices and maintain borrower protections.

This summary presents the essential content of the bill without the legal intricacies. Let me know if you need further clarifications!

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 09, 2025HouseFloorActionIntroduction and first reading
March 09, 2025SenateFloorActionIntroduction and first reading
March 09, 2025HouseFloorActionReferred toCommerce and Consumer Protection
March 09, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill amends section 47.20, subdivision 2 for definitions related to loans.",
      "modified": [
        "Excludes loans meeting the federal qualified mortgage points and fees threshold from the definition of a conventional loan."
      ]
    },
    "citation": "47.20",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentioned as an exception for conventional and cooperative apartment loans.",
      "modified": []
    },
    "citation": "334.011",
    "subdivision": ""
  }
]

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