HF 1865 Minnesota House · 2025-2026 Regular Session

Loans that satisfy the federal qualified mortgage points and fees threshold excluded from the definition of conventional loan.

HF 1865 amends Minnesota law to exclude loans meeting the federal "qualified mortgage" points and fees threshold from being classified as "conventional loans." This change directly affects Minnesota mortgage lenders and borrowers by removing certain federally compliant loans from the state's conventional loan definition. The bill modifies Minnesota Statutes § 47.20 by adding a new exclusion (subdivision 2, paragraph 3(b)) that removes loans where borrower points and fees do not exceed the federal threshold under 12 C.F.R. § 1026.43(e)(3). As a result, these specific loans will no longer be subject to Minnesota's conventional loan regulations and requirements.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2025

Committee Review

Floor Vote

Governor

Introduced Mar 5, 2025 Last action Mar 17, 2025

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What changed between versions

Introduction → 1st Engrossment · 4 edits · Mar 17, 2025

MODERATE

The bill was updated from its introduction to its first engrossment version, reflecting changes made during the legislative process. The most significant substantive change is a new exemption for loans that meet federal Qualified Mortgage standards, shielding them from specific service charge limits. Additionally, the definition of a 'conventional loan' was simplified by removing detailed exclusions for credit union loans, while the document's metadata and section numbering were updated.

Scope change

The bill's applicability was narrowed by creating a specific exemption for loans meeting federal Qualified Mortgage standards, meaning these loans are no longer subject to the service charge caps defined in the bill.

REQUIREMENT

Added an exemption stating that loans meeting Federal Qualified Mortgage standards are excluded from the service charge limitations in the bill.

DEFINITION

Simplified the definition of 'conventional loan' by removing specific text that previously excluded certain credit union loans from the definition.

TECHNICAL

Updated document metadata to reflect the transition from 'Introduction' to '1st Engrossment' and revised the posting date from March 5 to June 3, 2025.

Inserted new section numbers (2.35 and 4.35) into the bill's table of contents.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 17, 2025

Lower · Passed

Committee report, to adopt as amended

lower

Mar 5, 2025

Introduced

Introduction and first reading, referred to Commerce Finance and Policy

lower

1 primary · 3 co-sponsors