Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
SF4168 • 2026
Investment loans exception provision; Debt service coverage ratio loan definition
Investment loans exception provision; Debt service coverage ratio loan definition
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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Final Acti
House
Referred to Rules and Administration for comparison with HF3437
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2026-04-15
House
Rule 45-amend, subst. General Orders HF3437, SF indefinitely postponed
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2026-04-07
House
Comm report: To pass as amended
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2026-03-05
House
Introduction and first reading
Official Summary Text
Investment loans exception provision; Debt service coverage ratio loan definition
Current Bill Text
Read the full stored bill text
A bill for an act relating to commerce; providing an exception for investment loans; defining debt service coverage ratio loan; amending Minnesota Statutes 2024, sections 58.137, by adding a subdivision; 58.20, by adding a subdivision. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2024, section 58.137, is amended by adding a subdivision to read: new text begin Subd. 4. new text end new text begin Exception. new text end new text begin Subdivisions 1 and 2 do not apply to a residential mortgage loan that is a purchase money, first lien, or DSCR loan if: new text end new text begin (1) the loan is made for investment purposes only; new text end new text begin (2) no borrower, guarantor, or cosigner intend to or do occupy the residential real property securing the loan; and new text end new text begin (3) the seller does not continue to occupy the residential real property after the sale. new text end Sec. 2. Minnesota Statutes 2024, section 58.20, is amended by adding a subdivision to read: new text begin Subd. 5a. new text end new text begin Debt service coverage ratio loan or DSCR loan. new text end new text begin "Debt service coverage ratio loan" or "DSCR loan" means a mortgage: new text end new text begin (1) that is not a qualified mortgage, as defined in United States Code, title 15, section 1639c; new text end new text begin (2) secured by investment property; and new text end new text begin (3) where the lender's decision to make the loan is based on the expected cash flow to be generated from the investment property instead of the borrower's personal income. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2026, and applies to residential mortgage loans executed on or after that date. new text end