This bill seeks to enhance consumer protection in the insurance and financial sectors by implementing significant changes, particularly concerning virtual-currency kiosks and mortgage servicing. It prohibits the installation and operation of virtual-currency kiosks starting January 1, 2027, requiring existing operators to remove their kiosks by December 31, 2026. The bill mandates that these operators issue refunds for any transactions involving money or virtual currency, and it introduces new standards for residential mortgage loan servicing, emphasizing clear communication with borrowers, effective management of escrow accounts, and the processing of loan modifications. Additionally, it establishes penalties for non-compliance and outlines servicers' responsibilities in handling borrower requests.

The legislation also includes amendments to existing laws regarding mortgage and student loan servicing, requiring servicers to provide detailed account histories and one free statement annually to borrowers. It prohibits unfair practices and emphasizes the servicer's duty to act in good faith, particularly in cases of financial hardship. Furthermore, the bill mandates written notice to borrowers when their student loan servicer changes and updates definitions related to insurance practices. It enhances the loss mitigation process for mortgagors facing foreclosure by requiring servicers to notify them of available options and prohibiting foreclosure proceedings while loss mitigation applications are pending. Overall, the bill aims to create a more transparent and accountable framework for financial transactions and consumer interactions in Minnesota.

Statutes affected:
Introduction: 53B.69, 58.14, 58.18, 58B.02, 58B.03, 58B.06, 72A.18, 72A.20, 80G.01, 332.32, 582.043, 53B.75