SF 4168 Minnesota Senate · 2025-2026 Regular Session

Investment loans exception provision; Debt service coverage ratio loan definition

This bill modifies how residential mortgage loan fees and penalties are applied in Minnesota. It clarifies that the rules only apply to loans made for personal, family, or household purposes, excluding other types of loans. The changes affect mortgage originators both within and outside Minnesota who operate in the state. The new provisions will take effect on August 1, 2026, and apply to loans executed on or after that date.

Bill status died 1 of 4 stages cleared

Introduction

Mar 2026

Committee Review

Floor Vote

Governor

Introduced Mar 5, 2026 Last action Apr 15, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduction → 1st Engrossment · 3 edits · Apr 7, 2026

MINOR

This bill updates the legislative record to reflect its first engrossment status and introduces new exceptions for investment loans under Minnesota's mortgage fee regulations. The changes expand the scope of the law by creating a specific exemption for loans made solely for investment purposes where the borrower does not intend to live in the property. Additionally, the bill formally defines 'DSCR loans' as mortgages based on property cash flow rather than borrower income, ensuring these investment products are treated differently from residential loans.

Scope change

The bill's applicability was narrowed to exclude specific types of investment loans from standard residential mortgage fee limitations, and a new definition was added for DSCR loans.

ELIGIBILITY

Added an exception for residential mortgage loans that are made for investment purposes only, where no one intends to occupy the property, and the seller does not remain in the home.

DEFINITION

Created a new legal definition for 'Debt service coverage ratio loan' (DSCR loan), specifying it is an investment mortgage based on property cash flow rather than borrower income.

REQUIREMENT

Amended the application rules for mortgage loan fees to explicitly exclude the newly defined investment and DSCR loans from certain limitations.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2026

Upper · Passed

Comm report: To pass as amended

upper

Mar 5, 2026

Committee

Referred to Commerce and Consumer Protection

upper

Mar 5, 2026

Introduced

Introduction and first reading

upper

1 primary · 0 co-sponsors