HF2014 (Legislative Session 94 (2025-2026))
Notice requirements for conventional loan mortgage documents modified.
Related bill: SF2822
AI Generated Summary
Purpose of the Bill
The bill aims to update and modify the notice requirements for conventional loan mortgage documents.
Main Provisions
- The bill amends the existing Minnesota Statutes to add specific requirements for how lenders must provide notice to borrowers in the case of a default on a conventional loan.
- It mandates that the promissory note and mortgage documents for a conventional loan must be printed in a readable format (minimum of 8-point type or equivalent).
- The mortgage documents must include a provision for the lender to provide the borrower with a conformed copy of the promissory note and mortgage after they are executed or recorded.
- Lenders must also provide written notice of any default through certified or first-class mail, email, or other electronic communication if agreed upon by both parties.
Significant Changes
- The requirement for lenders to notify borrowers of default is reinforced, detailing what the notice should contain, such as the nature of the default, actions required to cure it, and potential consequences of failing to remedy the default.
- Borrowers are informed of their rights to reinstate the mortgage or challenge the foreclosure.
- The compliance with these requirements is optional for documents dated between August 1, 2024, and July 31, 2025.
Relevant Terms
- Conventional loan
- Mortgage document
- Default notice
- Promissory note
- Foreclosure
- Borrower's rights
- Electronic communication
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 05, 2025 | House | Floor | Action | Introduction and first reading, referred to | Commerce Finance and Policy |
| March 16, 2025 | House | Floor | Action | Committee report, to adopt | |
| March 16, 2025 | House | Floor | Action | Second reading |
Citations
[
{
"analysis": {
"added": [
"Amends type size requirements for loan documents.",
"Introduces provisions for electronic communication for default notices."
],
"removed": [],
"summary": "The bill modifies notice requirements for conventional loan mortgage documents under section 47.20.",
"modified": [
"Alters procedure for giving notice on mortgage defaults."
]
},
"citation": "47.20"
}
]