The bill modifies the application of certain fees and penalties related to residential mortgage loans by amending Minnesota Statutes 2024, section 58.137, subdivision 3. It specifies that the limitations and prohibitions outlined in this section will only apply to loans made primarily for personal, family, or household purposes. This change clarifies the scope of the regulations governing residential mortgage originators both within and outside the state.

Additionally, the bill establishes an effective date for these changes, stating that the new provisions will take effect on August 1, 2026, and will apply to residential mortgage loans executed on or after that date. This timeline allows for a transition period for stakeholders in the mortgage industry to adjust to the new regulations.

Statutes affected:
Introduction: 58.137