HF 211

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to mortgage lending; prohibiting sale of information provided on a
mortgage application; amending Minnesota Statutes 2006, section 13C.01, by
adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 13C.01, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Sale of certain information prohibited. new text end

new text begin A consumer reporting agency or
any other business entity may not sell to, or exchange with, a third party, unless the third
party holds an existing mortgage loan on the property, any information it obtains from
an application for a mortgage loan, including the fact that the applicant applied for the
mortgage loan. This subdivision does not apply to information provided by a mortgage
originator or servicer to a third party when necessary for the third party to provide a
service that the third party has been retained to perform in connection with the origination
or servicing of the mortgage loan. For purposes of this subdivision, "third party" does not
include an affiliate of the consumer reporting agency or other business entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2007.
new text end