|Senate Counsel & Research||State of Minnesota|
|S.F. No. 2881 - Contracts for Deed and Mortgage Lending Regulation - First Engrossment|
|Author:||Senator Linda Scheid|
|Prepared by:||Darlene Sliwa, Senate Research (651/296-1890)|
|Date:||February 25, 2008|
Section 1, subdivision 2, clause (2), raises the limit on the principal amount of a contract for deed
subject to usury regulation under Minnesota Statutes, section 47.20 (Lending Authority of Financial
Institutions; Maximum Interest Rate) from $100,000 to $300,000.
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:
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.
cc: Chris Stang
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