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Committee advances HF2014 to correct mortgage threshold language and allow electronic foreclosure notices
Summary
House File 2014, described as a technical corrections bill to fix changes made in a prior Commerce committee measure, was recommended to the general register. Sponsors said the bill adjusts statutory mortgage thresholds and clarifies allowance for electronic notice in foreclosure situations, and aligns state language with the Fannie Mae standard.
March 12, 2024 — The Minnesota House Commerce Finance and Policy Committee advanced House File 2014 to the general register after Representative Pat Dotseth moved the bill and the committee approved the motion by voice vote.
Why it matters: Committee testimony described HF2014 as a corrective bill addressing unintended scope changes adopted in last session's Department of Commerce technical policy language. Representatives and industry witnesses said the prior change expanded the loans covered by Minnesota Statute 47.20 (mortgage threshold) to include many loans that state-chartered lenders had not expected to be governed by that statute.
What the bill does: Testimony from Tess Rice, general counsel for the Minnesota Bankers Association, explained the bill would extend a compliance period and align state language with the Fannie Mae standard mortgage form so lenders that retain mortgages can update mortgage documents and forms consistent with statute. The bill also clarifies that lenders and borrowers may agree to electronic notice for foreclosure situations.
Procedure and next steps: Representative Dotseth moved HF2014 to be referred to the general register; the committee approved the motion by voice vote and advanced the bill. No roll-call tally was recorded in committee minutes.
