Bill > HF1865

This bill amends Minnesota Statutes by modifying the definition of loans subject to service charge limitations in the state's lending regulations. Specifically, the bill introduces an exemption for loans that meet the Federal Qualified Mortgage standards outlined in the Code of Federal Regulations, effectively removing these loans from the existing service charge restrictions. A Qualified Mortgage (QM) is a type of home loan that meets certain federal guidelines designed to ensure borrowers have the ability to repay their mortgage, with specific criteria related to points and fees, loan terms, and underwriting standards. By excluding these federally-defined loans from the state's service charge limitations, the bill provides more flexibility for lenders and potentially makes certain types of mortgages more accessible to borrowers. The change is part of the state's ongoing efforts to align its lending regulations with federal standards and to provide clearer guidelines for mortgage lending practices.

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https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1865&ssn=0&y=2025