Minnesota passed a bill amending the Minnesota Residential Mortgage Originator and Servicer Licensing Act (MRMOSLA). Under the bill, the MRMOSLA was amended to modify the application of residential mortgage loan fees and penalties for certain investment property loans by creating exceptions to existing subdivisions 1 and 2 of section 58.137 (Interest, Points, Finance Charges, Fees, and Other Charges) for purchase money, first lien, or debt service coverage ratio (DSCR) loans that meet specific investment property criteria. Also, the bill defined “Debt Service Coverage Ratio loan” or “DSCR loan” as a type of non-qualified mortgage secured by investment property where lending decisions are based on expected cash flow rather than borrower personal income. This bill becomes effective for residential mortgage loans executed on or after August 1, 2026.
Click to view the MN HB 3437: https://www.tenaco.com/wp-content/uploads/2026/05/MN-HB-3437-04-30-26.pdf
