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WBK Industry News - State Regulatory Developments

Minnesota Amends Provisions Relating to Subprime Loans

Minnesota Governor Timothy Walz recently signed into law a bill, House File 1840 (HF 1840), which, among other things, repeals the specific definition of, and removes references to, “subprime loans” from the Minnesota Residential Mortgage Originator and Servicer Licensing Act (MRMOSLA).  Note that these changes generally appear to be clarificatory changes because HF 1840 incorporates the definition of, and restrictions on, “subprime loans” into the MRMOSLA provisions.  However, as noted above, the MRMOSLA simply no longer defines or refers to such loans as “subprime loans.”

The changes made by HF 1840 go into effect on July 1, 2019.