This bill seeks to enhance consumer protection in the insurance and financial sectors, particularly focusing on virtual-currency kiosks and mortgage servicing practices. 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. Additionally, it mandates that these operators issue refunds for any transactions conducted through the kiosks. The bill also introduces new standards for residential mortgage loan servicing, including timely payment processing, clear communication with borrowers, and the maintenance of escrow accounts. It emphasizes the need for servicers to honor loan modification requests during servicing transfers and to maintain written policies regarding third-party providers.

Moreover, the bill amends existing laws governing student loan servicing and insurance practices. It requires servicers to provide written notice to borrowers at least 15 days prior to any transfer of servicing rights, ensuring that essential information is communicated. The bill also updates definitions related to insurance practices and mandates that licensees notify the commissioner of any significant changes within ten days. Additionally, it enhances loss mitigation requirements for mortgage servicers, including notifying mortgagors about available options before foreclosure and prohibiting dual tracking during pending loss mitigation applications. Overall, the legislation aims to create a more transparent and accountable framework for consumer financial products and services, thereby improving protections for borrowers and consumers 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