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SF2822 (Legislative Session 94 (2025-2026))

Conventional loan mortgage documents notice requirements modifications

Related bill: HF2014

AI Generated Summary

Purpose of the Bill

The bill seeks to modify the notice requirements related to conventional loan mortgage documents in Minnesota, amending existing statutes to presumably improve clarity and flexibility in lender-borrower communication.

Main Provisions

  • Type and Format Requirements: The promissory note and mortgage for conventional loans must be printed in a font size of at least 8-point type or the equivalent, ensuring they are legibly handwritten if not printed.
  • Borrower Copies: Lenders must provide borrowers with a conformed copy of the promissory note and mortgage at the time of execution or within a reasonable period after the mortgage is recorded.
  • Notice of Default: Should a lender intend to foreclose, they must notify the borrower of any default under the promissory note or mortgage. The notice can be sent either by certified or first-class mail to the property address or a different address if specified by the borrower, or via email or other electronic communication if agreed upon by both parties.
  • Specific Default Information: Notices must include details concerning the default, actions needed to rectify it, a cure deadline of at least 30 days, and information regarding potential acceleration of sums, right to reinstate the mortgage after acceleration, and the right to legal action to contest the default or other defenses.

Significant Changes to Existing Law

  • Expanded Communication Options: Introduces electronic communication (email) as a viable method for lenders to notify borrowers of defaults, provided there is mutual written consent.
  • Optional Compliance Period: From August 1, 2024, to July 31, 2025, compliance with these updated notice requirements becomes optional for lenders concerning conventional loan mortgage documents.

Relevant Terms

conventional loan, promissory note, mortgage, foreclosure, default notice, electronic communication, lender compliance, optional compliance period.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [
        "A provision for electronic communication if agreed upon by lender and borrower."
      ],
      "removed": [
        "Requirement for notice to be given only through certified or first-class mail."
      ],
      "summary": "This bill modifies notice requirements for conventional loan mortgage documents under section 47.20, subdivision 8.",
      "modified": [
        "Clarification of notice contents and circumstances under which notice is not required."
      ]
    },
    "citation": "47.20",
    "subdivision": "subdivision 8"
  }
]

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