Section 2, subdivision 1, paragraph (a), clause (24), provides that a mortgage originator or exempt person may rely on criteria established by the following entities to determine the borrower's reasonably ability to pay a residential mortgage loan:

• U.S. Department of Veterans Affairs and the U.S. Department of Housing and Urban Development for interest rate reduction refinancing loans or streamline loans;
• Federal National Mortgage Association;
• Federal Home Loan Mortgage Corporation.

Section 3, subdivision 1, provides that a borrower injured by a violation of the standards, duties, prohibitions, or requirements of Minnesota Statutes, section 58.161 (Mortgage Broker Duties of Agency) shall have a private right of action and specified damages awarded by the court.

Section 4, subdivision 2, provides that a borrower injured by a violation of the standards, duties, prohibitions, or requirements of Minnesota Statutes, section 58.161 (Mortgage Broker Duties of Agency) may also bring an action under Minnesota Statutes, section 8.31 (Additional Duties of Attorney General).

Section 5, subdivision 2, is a technical conforming change to section 1.

Section 6, provides that sections 3 and 4 are effective the day following final enactment for any actions filed on or after that date. Sections 1, 2, and 5 are effective the day following final enactment.

DS/syl

cc: Chris Stang

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