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Minnesota2026Passed Legislature

HF3437

Changes to Fees for Certain Investment Property Mortgages

Last scannedAug 22, 2026, 3:39 AM

In one sentence

This law creates an exception so that specific fees and penalties do not apply to investment property mortgages where the borrower does not live in the home.

What it does

  • Adds a rule stating that certain loan fees and penalties do not apply to purchase money, first lien, or DSCR loans used only for investment purposes.
  • Requires that no borrower, guarantor, or cosigner intends to occupy the property securing the loan for this exception to work.
  • States that the seller must also stop living in the property after selling it for the fee exemption to apply.
  • Defines a 'DSCR loan' as a mortgage secured by investment property where the lender's decision is based on expected cash flow from the property instead of the borrower's personal income.

Who it affects

  • Lenders offering residential mortgages in Minnesota that meet specific criteria.
  • Borrowers who take out loans for real estate they do not intend to occupy as a home.
  • Sellers of residential property who move out after the sale.

Limits and unknowns

  • This law takes effect on August 1, 2026.
  • It only applies to mortgage loans signed or executed on or after August 1, 2026.
  • The text does not specify the exact dollar amounts of fees that are removed.

Plain language

Terms to know

DSCR loan
A mortgage secured by investment property where the lender approves the loan based on expected cash flow from the property rather than the borrower's personal income, and which is not a qualified mortgage.
Investment purposes only
The loan is used to buy a property that no one involved in the deal plans to live in as their home.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

Application of certain residential mortgage loan fees and penalties modified.

Official activity

Bill history

  1. Presented to Governor 04/28/2026House
  2. Presentment date 04/28/26Senate
  3. Returned from Senate with amendmentHouse
  4. House rule 1.15 (c), message requesting concurrence receivedHouse
  5. Special Order: Rule 45 amendment strickenSenate
  6. Comm report: Rule 45-amend, subst. General Orders SF4168Senate
  7. Received from HouseSenate
  8. Third readingHouse
  9. House rule 1.21, placed on Calendar for the Day Monday, April 13, 2026House
  10. Committee report, to adopt as amendedHouse
  11. Introduction and first reading, referred to Commerce Finance and PolicyHouse