Bill > SF2296

This bill amends Minnesota Statutes to modify the definition of a "conventional loan" by adding an exclusion for certain mortgage loans. Specifically, the bill excludes from the definition of a conventional loan any loan secured by residential property where the points and fees charged by all lenders do not exceed the threshold specified in federal regulations (Code of Federal Regulations, title 12, section 1026.43(e)(3)). This means that loans meeting the federal qualified mortgage points and fees criteria will no longer be classified as conventional loans under Minnesota law. The change is technical in nature and appears to align state law with federal mortgage lending standards, potentially providing more flexibility for lenders and borrowers by creating a clear exemption for loans that meet specific federal points and fees requirements. The amendment is part of Minnesota's ongoing efforts to update its financial regulations to reflect current lending practices and federal guidelines.

Business and Industry

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2296&ssn=0&y=2025