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Minnesota Legislature

Office of the Revisor of Statutes

HF 354

4th Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:36am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 4th Engrossment

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A bill for an act
relating to real property; providing for mediation prior to commencement
of mortgage foreclosure proceedings on homestead property; creating a
homestead-lender mediation account; amending Minnesota Statutes 2008,
sections 357.18, subdivision 1; 508.82, subdivision 1; 508A.82, subdivision
1; 580.021; 580.022, subdivision 1; 580.23, by adding a subdivision; 582.30,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 583.

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

ARTICLE 1

HOMESTEAD-LENDER MEDIATION

Section 1.

Minnesota Statutes 2008, section 580.021, is amended to read:


580.021 FORECLOSURE PREVENTION COUNSELINGnew text begin; MEDIATION
REFERRAL
new text end.

Subdivision 1.

Applicability.

This section applies to foreclosure of mortgages under
this chapter new text beginor chapter 581 new text endon property consisting of one to four family dwelling units, one
of which the owner occupies as the owner's principal place of residency on the date of
service of the notice of sale of the owner.

Subd. 2.

Requirement to provide notice of opportunity for counselingnew text begin and
mediation
new text end.

When the written notice required under section 47.20, subdivision 8, is
provided and before the notice of pendency under section 580.032, subdivision 3, is filed,
a party foreclosing on a mortgage must provide to the mortgagor information contained in
a form prescribed in section 580.022, subdivision 1, that:

(1) foreclosure prevention counseling services provided by an authorized foreclosure
prevention counseling agency are available; deleted text beginanddeleted text end

(2) notice that the party will transmit the homeowner's name, address, and telephone
number to an approved foreclosure prevention agencynew text begin and the Office of the Attorney
General; and
new text end

new text begin (3) notice that if the mortgagor receives counseling services but is unable to
resolve the default, the mortgagor may have the mortgage debt reviewed in a mediation
proceeding with a mediator approved by the attorney general
new text end.

new text begin Clause (3) expires on July 1, 2012.
new text end

Nothing in this subdivision prohibits the notices required by this subdivision
from being provided concurrently with the written notice required under section 47.20,
subdivision 8.

For the purposes of this section, an "authorized foreclosure prevention counseling
agency" new text beginor "counseling agency" new text endis a new text begingovernment agency or a new text endnonprofit agency deleted text beginapproveddeleted text end
new text begin funded, all or in part for foreclosure prevention services, new text endby the Minnesota Housing
Finance Agency or the United States Department of Housing and Urban Developmentnew text begin, or
otherwise approved by the United States Department of Housing and Urban Development
new text end
to provide foreclosure prevention counseling services.

Subd. 3.

Notification to authorized counseling agency.

The party entitled to
foreclose shall, within one week of sending the notice prescribed in section 580.022,
provide to the appropriate authorized foreclosure prevention new text begincounseling new text endagency new text beginand the
Office of the Attorney General
new text endthe mortgagor's name, address, and most recent known
telephone number.

Subd. 4.

Notice of provision of counseling; request for contact information.

(a)
An authorized foreclosure prevention new text begincounseling new text endagency that contacts or is contacted by a
mortgagor or the mortgagor's authorized representative and agrees to provide foreclosure
prevention assistance services to the mortgagor or representative must provide the form
prescribed in section 580.022new text begin, subdivision 2, new text end to the mortgagee. The form serves as
notice to the mortgagee that the mortgagor is receiving foreclosure prevention counseling
assistance. new text beginUpon receipt of the form, the mortgagee must not commence or continue a
foreclosure proceeding past the day prior to the time when the initial published notice
contained in section 580.03 must be given, except when allowed under sections 583.40
to 583.48.
new text end

(b) The mortgagee must return the form to the deleted text beginauthorized foreclosure preventiondeleted text endnew text begin
counseling
new text end agency within 15 days of receipt of the form with the name and telephone
number of the mortgagee's agent. The agent must be a person authorized by the mortgagee
to:

(1) discuss with the deleted text beginauthorized foreclosure preventiondeleted text end new text begincounseling new text endagency or the
mortgagor the terms of the mortgage; and

(2) negotiate any resolution to the mortgagor's default.

(c) Nothing in this subdivision requires a mortgagee to reach a resolution relating to
the mortgagor's default.

new text begin Subd. 5. new text end

new text begin Mediation referral. new text end

new text begin (a) If an authorized foreclosure prevention counseling
agency provides counseling services to a mortgagor, the counseling agency must discuss
repayment options and alternatives for resolving the default with the mortgagor and
mortgagee. If the mortgagor and mortgagee are unable to negotiate a resolution of the
mortgagor's default within 60 days of receipt of the form submitted by the mortgagee
under subdivision 4, paragraph (b), the counseling agency must give the mortgagor a
mediation request affidavit in the form prescribed in section 583.46, subdivision 2, unless
the mortgagor is not eligible for mediation under section 583.41. The counseling agency
also must inform the mortgagor that if the mortgagor wishes to pursue mediation, the form
must be sent by certified mail to the attorney general within seven days of receipt of the
form. The counseling agency must forward the mortgagor's name to the attorney general
along with a copy of the form submitted by the mortgagee under subdivision 4, paragraph
(b), to verify the mortgagor's eligibility to participate in mediation.
new text end

new text begin (b) This subdivision expires on July 1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2008, section 580.022, subdivision 1, is amended to read:


Subdivision 1.

Counseling form.

The notice required under section 580.021,
subdivision 2, deleted text beginclause (2),deleted text end must be printed on colored paper that is other than the color of
any other document provided with it and must appear substantially as follows:

"PREFORECLOSURE NOTICE

Foreclosure Prevention Counselingnew text begin and Mediation
new text end

Why You Are Getting This Notice

new text begin YOU HAVE DEFAULTED ON A MORTGAGE OF THE HOMESTEAD
PROPERTY DESCRIBED AS [Legal Description and Property Address]. THE HOLDER
OF THE MORTGAGE, [Name of Holder of Mortgage] INTENDS TO FORECLOSE ON
THIS PROPERTY. YOU HAVE THE RIGHT TO PARTICIPATE IN A MEDIATION
PROCESS TO SEE IF A RESOLUTION CAN BE REACHED WITH [Name of Holder
of Mortgage]. TO LEARN MORE ABOUT MEDIATION, CONTACT THE OFFICE OF
THE ATTORNEY GENERAL AT (651) 296-3353 OR 1-800-657-3787, OR ONLINE AT
WWW.AG.STATE.MN.US. IF YOU WANT TO PARTICIPATE IN MEDIATION, YOU
MUST FIRST PARTICIPATE IN FORECLOSURE PREVENTION COUNSELING
WITH THE AGENCY LISTED BELOW.
new text end

We do not want you to lose your home and your equity. Government-approved
nonprofit agencies are available to, if possible, help you prevent foreclosure.

We have given your contact information to an authorized foreclosure prevention
counseling agency to contact you to help you prevent foreclosure.

Who Are These Foreclosure Prevention Counseling Agencies

They are nonprofit agencies who are experts in housing and foreclosure prevention
counseling and assistance. They are experienced in dealing with lenders and homeowners
who are behind on mortgage payments and can help you understand your options and
work with you to address your delinquency. They are approved by either the Minnesota
Housing Finance Agency or the United States Department of Housing and Urban
Development. They are not connected with us in any way.

Which Agency Will Contact You

[insert name, address, and telephone number of agency]

You can also contact them directly."

Sec. 3.

Minnesota Statutes 2008, section 580.23, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Five-month redemption period. new text end

new text begin (a) Notwithstanding subdivision 1,
if, before the sale of lands in conformity with the preceding sections of this chapter,
the mortgagor or the mortgagor's personal representatives or assigns participated in
mediation proceedings under sections 583.40 to 583.49, the period of time for redemption
as provided under subdivision 1 is five months instead of six months.
new text end

new text begin (b) If the mortgagor or the mortgagor's personal representatives or assigns
participated in mediation proceedings under sections 583.40 to 583.49, and the mortgagor
or owner seeks to postpone the sale as permitted by section 580.07, the postponement
must be to the first date that is not a Saturday, Sunday, or legal holiday and is four months
after the originally scheduled date of sale. Except as provided in this paragraph, the
mortgagor or owner must otherwise follow the provisions of section 580.07 in seeking
a postponement of sale.
new text end

new text begin (c) This subdivision expires on July 1, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective only if the provisions contained in
2009 House File Number 19, the first engrossment, are enacted into law.
new text end

Sec. 4.

Minnesota Statutes 2008, section 582.30, subdivision 2, is amended to read:


Subd. 2.

deleted text beginNot if six-month or five-week redemption perioddeleted text endnew text begin No deficiency
judgment
new text end.

A deficiency judgment is not allowed if a mortgage is foreclosed by
advertisement under chapter 580, and has a redemption period of six months under section
580.23, subdivision 1, new text beginfive months under section 580.23, subdivision 1a, new text endor five weeks
under section 582.032.

Sec. 5.

new text begin [583.40] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to sections
583.40 to 583.48.
new text end

new text begin Subd. 2. new text end

new text begin Commence a foreclosure proceeding. new text end

new text begin "Commence a foreclosure
proceeding" means to file a notice of pendency under section 580.032 or commence a
foreclosure action under chapter 581.
new text end

new text begin Subd. 3. new text end

new text begin Send. new text end

new text begin "Send" means to deliver by certified mail or another method
acknowledging receipt.
new text end

new text begin Subd. 4. new text end

new text begin Serve. new text end

new text begin "Serve" means personal service under the Minnesota Rules of
Civil Procedure.
new text end

Sec. 6.

new text begin [583.41] APPLICABILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Creditors. new text end

new text begin (a) Sections 583.40 to 583.48 apply to a person who is
the holder of a mortgage to which section 580.021 applies.
new text end

new text begin (b) Sections 583.40 to 583.48 do not apply to property if the holder of the mortgage,
before selling the property to the owner, occupied the property as the holder's principal
place of residency.
new text end

new text begin Subd. 2. new text end

new text begin Debtors. new text end

new text begin Sections 583.40 to 583.48 apply to a debtor who has received
foreclosure prevention counseling under section 580.021 and who has been verified as
eligible for mediation by an authorized foreclosure prevention counseling agency, or who
files a mediation request under section 583.42, subdivision 1, paragraph (b), indicating
that the debtor did not receive the required preforeclosure prevention counseling and
mediation notice. Sections 583.40 to 583.48 do not apply to a debtor who qualifies as a
debtor under the Farmer-Lender Mediation Act.
new text end

new text begin Subd. 3. new text end

new text begin Applicability. new text end

new text begin Sections 580.40 to 583.48 do not apply to mortgages
refinanced or modified under the Home Affordable Refinance or Home Affordable
Modification Programs established by the United States Treasury Department in 2009.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin For the purposes of sections 580.40 to 583.48, a debtor is
eligible for mediation only if the following criteria apply:
new text end

new text begin (1) the debtor generally meets all the mediation eligibility requirements in sections
583.40 to 583.48;
new text end

new text begin (2) if, while the foreclosure prevention counseling agency provided counseling
services to the debtor, the creditor did not modify the debtor's mortgage loan that is subject
to the foreclosure proceeding; and
new text end

new text begin (3) there is a reasonable likelihood that the debtor could afford a modified loan.
The mediator must consider whether a potential loan modification would result in a
debt-to-income ratio that is within the traditional secondary market loan qualification
guidelines established by Fannie Mae and/or Freddie Mac.
new text end

new text begin Subd. 5. new text end

new text begin Exemption. new text end

new text begin Sections 583.40 to 583.48 do not apply to mortgages
originated, serviced, and held by a credit union, an organization majority-owned by one
or more credit unions, a savings association, or a bank that has a physical location in
Minnesota and has had five foreclosures or less during twelve months preceding the date
of the foreclosure notice for the subject mortgage. This exemption only applies if the
credit union, savings association, or bank underwrote the loans in its portfolio to prudent
industry lending standards including requiring income documentation and verification.
new text end

Sec. 7.

new text begin [583.42] MANDATORY MEDIATION PROCEEDINGS.
new text end

new text begin Subdivision 1. new text end

new text begin Mediation request. new text end

new text begin (a) A debtor who wishes to participate in
mediation must send a mediation request affidavit in the form prescribed in section 583.46,
subdivision 2 to the attorney general within seven days after receiving the mediation
request affidavit from the counseling agency under section 580.021, subdivision 5. The
debtor must disclose all known creditors with debts secured by the property. A debtor
who fails to send a timely mediation request waives the right to mediation under sections
583.40 to 583.48 for that specific mortgage foreclosure. Upon receipt of a mediation
request affidavit, the attorney general must send a copy of the affidavit to the holder of
the mortgage. The holder of the mortgage must not commence a foreclosure proceeding
against the property or proceed with a proceeding to which paragraph (b) applies until the
stay of the foreclosure is lifted or as otherwise authorized under sections 583.40 to 583.48.
new text end

new text begin (b) If a debtor did not receive the preforeclosure prevention counseling and
mediation notice required under section 580.021 and a mortgage foreclosure proceeding
has been commenced against the debtor's property, the debtor may send the mediation
request affidavit to the attorney general at any time before the time when the initial public
notice contained in section 580.03 must be given. The mediation request affidavit must
indicate that the debtor has not received the required notice.
new text end

new text begin (c) The attorney general must combine all mediation requests for the same debtor
that are received before the initial mediation meeting into one mediation proceeding.
new text end

new text begin (d) The debtor shall only be entitled to a single mediation proceeding for that specific
mortgage foreclosure. In the event a mortgage is modified through the mediation process
contained in sections 583.40 to 583.48, that mortgage shall not be eligible for mediation if
the modified mortgage becomes the subject of subsequent foreclosure proceeding.
new text end

new text begin Subd. 2. new text end

new text begin Mediation proceeding notice. new text end

new text begin (a) Within ten days after receiving a
mediation request, the attorney general must send:
new text end

new text begin (1) a mediation proceeding notice to the debtor; and
new text end

new text begin (2) a mediation proceeding notice to all creditors with a lien on the property listed by
the debtor in the mediation request.
new text end

new text begin (b) The mediation proceeding notice must disclose:
new text end

new text begin (1) the name and address of the debtor;
new text end

new text begin (2) that the debtor has requested mediation under sections 583.40 to 583.48;
new text end

new text begin (3) the time and place for the initial mediation meeting;
new text end

new text begin (4) that in lieu of having a mediator assigned by the attorney general, the debtor and
any one or more of the creditors may agree to select and pay for a professional mediator
who must be approved by the attorney general;
new text end

new text begin (5) that sections 583.40 to 583.48 do not prohibit the creditor from continuing the
foreclosure proceeding up through, but not including, the time when the initial published
notice contained in section 580.03 must be given but the creditor must not publish the
initial notice, except as otherwise allowed under sections 583.40 to 583.48;
new text end

new text begin (6) by the initial mediation meeting, the creditor must provide the debtor with a copy
of the mortgage and note, a statement of interest rates on the debt, delinquent payments,
unpaid principal and interest balances, the creditor's estimate of value of the property, and
a general description of the debt restructuring programs available from the creditor; and
new text end

new text begin (7) by the initial mediation meeting, the debtor must provide the creditor and the
mediator with full documentation of the debtor's income and financial obligations.
new text end

new text begin (c) An initial mediation meeting must be held within 20 days of the mediation
proceeding notice. The initial mediation meeting shall be held by telephone or
video conference. The mediator shall reserve the right to require the parties, or their
representatives, to appear in person for subsequent mediation meetings, if the mediator
concludes and certifies that the personal attendance of the parties is reasonably necessary
for a meaningful conclusion of the mediation. At the initial mediation meeting, the
mediator shall determine whether or not there is a reasonable likelihood that the debtor
could afford a modified loan.
new text end

new text begin (d) In lieu of the attorney general assigning a mediator, the debtor and creditor may
agree to select and pay for a professional mediator for the mediation proceeding. The
attorney general must approve the professional mediator before the professional mediator
may be assigned to the mediation proceeding. The professional mediator may not be
approved unless the professional mediator prepares and signs an affidavit:
new text end

new text begin (1) disclosing any biases, relationships, or previous associations with the debtor or
creditor subject to the mediation proceedings;
new text end

new text begin (2) stating certifications, training, or qualifications as a professional mediator;
new text end

new text begin (3) disclosing fees to be charged or a rate schedule of fees for the mediation
proceeding; and
new text end

new text begin (4) affirming to uphold sections 583.40 to 583.48.
new text end

new text begin Subd. 3. new text end

new text begin Effect of mediation proceeding notice. new text end

new text begin (a) Sections 583.40 to 583.48
do not prevent a creditor from continuing the foreclosure proceeding up through, but not
including, the time when the initial published notice contained in section 580.03 must be
given. A creditor must not publish the initial notice, except as otherwise allowed under
sections 583.40 to 583.48.
new text end

new text begin (b) Notwithstanding paragraph (a), a creditor receiving a mediation proceeding
notice may commence or continue a mortgage foreclosure proceeding against the property
if:
new text end

new text begin (1) the creditor receives a mediator's affidavit of the debtor's lack of good faith
under section 583.43;
new text end

new text begin (2) ten days have expired since the debtor and creditor signed an unrevoked
agreement under subdivision 7 allowing the creditor to commence mortgage foreclosure
proceedings against the property; or
new text end

new text begin (3) the creditor receives a termination statement under subdivision 8.
new text end

new text begin (c) A creditor receiving a mediation proceeding notice must provide the debtor
by the initial mediation meeting with a copy of the mortgage and note, a statement of
interest rates on the debt, delinquent payments, unpaid principal and interest balances,
the creditor's estimate of the value of the property, and a general description of the debt
restructuring programs available from the creditor.
new text end

new text begin (d) The provisions of this subdivision are subject to section 583.43, relating to
extensions or reductions in the period before a creditor may commence or continue a
mortgage foreclosure proceeding.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility and duties of mediator. new text end

new text begin (a) The attorney general may appoint
and arrange for the compensation of mediators who are qualified persons experienced
in finance or negotiation.
new text end

new text begin (b) A person is not eligible to be a mediator if the person has a conflict of interest
that does not allow the person to be impartial.
new text end

new text begin (c) At all mediation meetings, the mediator shall:
new text end

new text begin (1) attempt to mediate between the debtor and the creditors;
new text end

new text begin (2) advise the debtor and creditors of assistance programs that are available;
new text end

new text begin (3) attempt to arrive at an agreement to fairly adjust, refinance, or pay the mortgage
debt; and
new text end

new text begin (4) advise, counsel, and assist the debtor and creditor in attempting to arrive at an
agreement for the future conduct of financial relations between them.
new text end

new text begin (d) The mediator shall have the discretion to determine the format of the mediation
meetings, including whether or not to keep the parties separate.
new text end

new text begin Subd. 5. new text end

new text begin Mediator liability and immunity. new text end

new text begin A mediator and the attorney general
and their employees are immune from civil liability for actions within the scope of their
positions under this chapter. A mediator and the attorney general and their employees do
not have a duty to advise a creditor or debtor about the law or to encourage or assist a
debtor or creditor regarding their legal rights. This subdivision is in addition to and not
a limitation of immunity that otherwise exists under law.
new text end

new text begin Subd. 6. new text end

new text begin Mediation period. new text end

new text begin The mediator may call mediation meetings during the
mediation period, which may be up to 60 days after the debtor sends a mediation request
to the attorney general.
new text end

new text begin Subd. 7. new text end

new text begin Mediation agreement. new text end

new text begin (a) If an agreement is reached among the debtor
and creditors, the mediator must witness and sign a written mediation agreement, have
it signed by the debtor and creditors, and if applicable, submit the agreement to (1) the
attorney general, and (2) any court that has jurisdiction over mortgage foreclosure or
redemption proceedings regarding the property.
new text end

new text begin (b) The debtor and creditors who are parties to the approved mediation agreement and
creditors who have filed claim forms and have not objected to the mediation agreement:
new text end

new text begin (1) are bound by the terms of the agreement; and
new text end

new text begin (2) may enforce the mediation agreement as a legal contract.
new text end

new text begin (c) A debtor may agree to allow a creditor to commence a mortgage foreclosure
proceeding against property that is subject to mediation before the proceeding is otherwise
allowed under subdivision 3, provided that the debtor or creditor may rescind the
agreement within five business days after that debtor and creditor both sign the agreement.
new text end

new text begin Subd. 8. new text end

new text begin Termination of mediation. new text end

new text begin (a) The mediator must sign and serve on the
parties and the attorney general an affidavit by the end of the mediation period.
new text end

new text begin (b) The mediator must prepare an affidavit acknowledging that mediation has ended
and that:
new text end

new text begin (1) describes or references agreements reached between a creditor and the debtor, if
any, and agreements reached among creditors, if any; or
new text end

new text begin (2) states that no agreement was reached between the parties, despite a good faith
effort by the parties.
new text end

new text begin (c) Mediation agreements may be included as part of the affidavit.
new text end

new text begin (d) Within three business days after the end of mediation, the mediator must forward
the affidavit under paragraph (b) for recording with the county recorder or registrar
of titles of the county where the property is located. The filed affidavit is prima facie
evidence of the facts stated in the affidavit.
new text end

Sec. 8.

new text begin [583.43] GOOD FAITH REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Obligation of good faith. new text end

new text begin The parties must engage in mediation in
good faith. Not participating in good faith includes:
new text end

new text begin (a) failure to attend and participate in mediation sessions without cause;
new text end

new text begin (b) failure to provide full information regarding the financial obligations of the
parties and other creditors including the obligation of a creditor to provide information
under section 583.42, subdivision 3, paragraph (c);
new text end

new text begin (c) failure of the creditor to designate a representative to participate in the mediation
with authority to make binding commitments;
new text end

new text begin (d) lack of a written statement of debt restructuring alternatives and a statement of
reasons why alternatives are unacceptable to one of the parties; and
new text end

new text begin (e) other similar behavior that evidences lack of good faith by a party. A failure to
agree to reduce, restructure, refinance, or forgive debt is not, in itself, evidence of lack of
good faith by the creditor. Nothing in sections 583.40 to 583.49 shall require a creditor to
modify the debt that is the subject of the foreclosure proceeding.
new text end

new text begin Subd. 2. new text end

new text begin Party's bad faith; mediator's affidavit. new text end

new text begin If the mediator determines that
either party is not participating in good faith as defined in subdivision 1, the mediator must
file an affidavit indicating the reasons for the finding with the attorney general and with
parties to the mediation.
new text end

new text begin Subd. 3. new text end

new text begin Creditor's bad faith. new text end

new text begin If the mediator finds that the creditor has not
participated in the mediation in good faith, and the creditor continues with the foreclosure
proceeding, then the debtor shall be a allowed a six-month redemption period.
new text end

new text begin Subd. 4. new text end

new text begin Debtor's lack of good faith. new text end

new text begin If the mediator finds that the debtor has not
participated in the mediation in good faith, and the creditor continues with the foreclosure
proceeding, then the debtor shall execute a deed in lieu of foreclosure within 90 days of
the filing of the mediator's affidavit containing the finding of bad faith.
new text end

Sec. 9.

new text begin [583.44] CREDITOR NOT ATTENDING MEDIATION MEETING.
new text end

new text begin Subdivision 1. new text end

new text begin Filing and effect of claim form. new text end

new text begin A creditor that is notified of the
initial mediation meeting is subject to and bound by a mediation agreement if the creditor
does not attend mediation meetings, unless the creditor files a claim form. In lieu of
attending a mediation meeting, a creditor may file a claim form with the mediator before
the scheduled meeting. By filing a claim form the creditor agrees to be bound by a
mediation agreement reached at the mediation meeting unless an objection is filed within
the time specified in subdivision 2. The mediator must notify the creditors who have filed
claim forms of the terms of any agreement.
new text end

new text begin Subd. 2. new text end

new text begin Objections to agreements. new text end

new text begin A creditor who has filed a claim form may
serve a written objection to the terms of the mediation agreement on the mediator and the
debtor within ten days after receiving notice of the mediation agreement. If a creditor files
an objection to the terms of a mediation agreement, the mediator must meet again with
debtors and creditors within ten days after receiving the objection. Notwithstanding the
mediation period under section 583.43, subdivision 7, if an objection is filed, the mediator
must call mediation meetings during the ten-day period following receipt of the objection.
new text end

Sec. 10.

new text begin [583.45] DATA PRACTICES.
new text end

new text begin Data regarding the finances of individual debtors and creditors created, collected,
and maintained by the attorney general or mediators under sections 583.40 to 583.48 are
private data on individuals or nonpublic data as defined in section 13.02, subdivision 9
or 12.
new text end

Sec. 11.

new text begin [583.46] FORMS AND COMPENSATION.
new text end

new text begin Subdivision 1. new text end

new text begin Compensation. new text end

new text begin The attorney general must set the compensation
of mediators.
new text end

new text begin Subd. 2. new text end

new text begin Mediation request affidavit form. new text end

new text begin The affidavit for requesting mediation
under section 583.42, must be in substantially the following form:
new text end

new text begin MEDIATION REQUEST AFFIDAVIT
new text end

new text begin Re: Homestead-Lender Mediation Act Applicability.
new text end

new text begin State of Minnesota
new text end _
new text begin )
new text end
new text begin ) SS.
new text end
new text begin County of
new text end _
new text begin )
new text end

new text begin _________________________, being first duly sworn, deposes and says:
new text end

new text begin I wish to participate in a mediation process to resolve a dispute with the holder of a
mortgage on property in which I have an ownership interest, located at:
new text end

new text begin _____________________________
new text end

new text begin Street Address
new text end

new text begin ____________________________________
new text end

new text begin City, State, Zip Code
new text end

new text begin CHECK THE APPLICABLE STATEMENT
new text end

new text begin [ ] This property consists of one to four family dwelling units, one of which I
occupied as my principal place of residency on the date that I received a Preforeclosure
Notice relating to the dispute.
new text end

new text begin [ ] I did not receive a Preforeclosure Notice but this property consists of one to four
family dwelling units, one of which I occupied as my principal place of residency on the
date of this Mediation Request Affidavit.
new text end

new text begin _______________________________
new text end

new text begin Subscribed and sworn to before me this
new text end
_ new text begin day of new text end _ , _ .
_
new text begin Notary Public, new text end _ new text begin County
new text end _
new text begin My Commission expires:
_
new text end

Sec. 12.

new text begin [583.47] ENFORCEMENT.
new text end

new text begin A mediation agreement may be enforced by a state district court.
new text end

Sec. 13.

new text begin [583.48] INCONSISTENT LAWS.
new text end

new text begin Sections 583.40 to 583.47 have precedence over any inconsistent or conflicting laws,
including chapters 580 and 581.
new text end

Sec. 14.

new text begin [583.49] EXPIRATION.
new text end

new text begin Sections 583.40 to 583.48 expire July 1, 2012.
new text end

Sec. 15. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2009, and applies to foreclosures commenced on or
after that date.
new text end

ARTICLE 2

FEES AND APPROPRIATIONS

Section 1.

Minnesota Statutes 2008, section 357.18, subdivision 1, is amended to read:


Subdivision 1.

County recorder fees.

new text begin(a) new text endThe fees to be charged by the county
recorder shall be and not exceed the following:

(1) new text beginsubject to paragraph (b), new text endfor indexing and recording any deed or other instrument
a fee of $46; $10.50 shall be paid to the state treasury and credited to the general fund;
$10 shall be deposited in the technology fund pursuant to subdivision 3; and $25.50 shall
be deposited in the county general fund;

(2) for documents containing multiple assignments, partial releases or satisfactions a
fee of $46; if the document cites more than four recorded instruments, an additional fee of
$10 for each additional instrument cited over the first four citations;

(3) for certified copies of any records or papers, $10;

(4) for a noncertified copy of any instrument or writing on file or recorded in the
office of the county recorder, or any specified page or part of it, an amount as determined
by the county board for each page or fraction of a page specified. If computer or microfilm
printers are used to reproduce the instrument or writing, a like amount per image;

(5) for an abstract of title, the fees shall be determined by resolution of the county
board duly adopted upon the recommendation of the county recorder, and the fees shall
not exceed $10 for every entry, $100 for abstract certificate, $1 per page for each exhibit
included within an abstract as a part of an abstract entry, and $5 per name for each
required name search certification;

(6) for a copy of an official plat filed pursuant to section 505.08, the fee shall be $10
and an additional $5 shall be charged for the certification of each plat;

(7) for filing an amended floor plan in accordance with chapter 515, an amended
condominium plat in accordance with chapter 515A, or a common interest community
plat or amendment complying with section 515B.2-110, subsection (c), the fee shall be 50
cents per apartment or unit with a minimum fee of $56;

(8) for a copy of a floor plan filed pursuant to chapter 515, a copy of a condominium
plat filed in accordance with chapter 515A, or a copy of a common interest community
plat complying with section 515B.2-110, subsection (c), the fee shall be $1 for each page
of the floor plan, condominium plat or common interest community plat with a minimum
fee of $10;

(9) for recording any plat, a fee of $56, of which $10.50 must be paid to the state
treasury and credited to the general fund, $10 must be deposited in the technology fund
pursuant to subdivision 3, and $35.50 must be deposited in the county general fund; and

(10) for a noncertified copy of any document submitted for recording, if the original
document is accompanied by a copy or duplicate original, $2. Upon receipt of the copy
or duplicate original and payment of the fee, a county recorder shall return it marked
"copy" or "duplicate," showing the recording date and, if available, the document number
assigned to the original.

new text begin (b) During the period from the effective date of sections 583.40 to 583.49 through
December 31, 2012, the fee under paragraph (a), clause (1), for recording a notice of
pendency of a foreclosure by advertisement under section 580.032 or a notice of lis
pendens for a foreclosure by action under section 557.02 is increased by $125; this amount
is to be paid to the state treasury and credited to the Homestead-Lender Mediation Act
account in the special revenue fund.
new text end

Sec. 2.

Minnesota Statutes 2008, section 508.82, subdivision 1, is amended to read:


Subdivision 1.

Standard documents.

new text begin(a) new text endThe fees to be charged by the registrar of
titles shall be and not exceed the following:

(1) of the fees provided herein, $1.50 of the fees collected under clauses (2), (3), (4),
(11), (13), (15), (17), and (18) for filing or memorializing shall be paid to the state treasury
pursuant to section 508.75 and credited to the general fund;

(2) for registering a first certificate of title, including issuing a copy of it, $46.
Pursuant to clause (1), distribution of this fee is as follows:

(i) $10.50 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $25.50 shall be deposited in the county general fund;

(3) for registering each instrument transferring the fee simple title for which a new
certificate of title is issued and for the registration of the new certificate of title, including
a copy of it, $46. Pursuant to clause (1), distribution of this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $24 shall be deposited in the county general fund;

(4) new text beginsubject to paragraph (b), new text endfor the entry of each memorial on a certificate, $46.
For multiple certificate entries, $20 thereafter. Pursuant to clause (1), distribution of
this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
;

(iii) $24 shall be deposited in the county general fund; and

(iv) $20 shall be deposited in the county general fund for each multiple entry used;

(5) for issuing each residue certificate and each additional new certificate, $40;

(6) for exchange certificates, $20 for each certificate canceled and $20 for each
new certificate issued;

(7) for each certificate showing condition of the register, $50;

(8) for any certified copy of any instrument or writing on file or recorded in the
registrar of titles' office, $10;

(9) for a noncertified copy of any certificate of title, other than the copies issued
under clauses (2) and (3), any instrument or writing on file or recorded in the office of
the registrar of titles, or any specified page or part of it, an amount as determined by the
county board for each page or fraction of a page specified. If computer or microfilm
printers are used to reproduce the instrument or writing, a like amount per image;

(10) for a noncertified copy of any document submitted for recording, if the original
document is accompanied by a copy or duplicate original, $2. Upon receipt of the copy
or duplicate original and payment of the fee, a registrar of titles shall return it marked
"copy" or "duplicate," showing the recording date and, if available, the document number
assigned to the original;

(11) for filing two copies of any plat, other than a CIC plat complying with section
515B.2-110, paragraph (c), in the office of the registrar, $56. Pursuant to clause (1),
distribution of this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $34 shall be deposited in the county general fund;

(12) for any other service under this chapter, such fee as the court shall determine;

(13) for filing any document affecting two or more units in a condominium governed
by chapter 515, $46 for the first certificate upon which the document is registered, and for
multiple certificate entries, $20 for each additional certificate upon which the document
is registered. For purposes of this paragraph, an amendment to the declaration of a
condominium governed by chapter 515 and a related amendment to the condominium
floor plans shall be considered a single document, and the filing fee shall be $56 for the
first certificate upon which the document is registered, and for multiple certificate entries,
$20 for each additional certificate upon which the document is registered. Pursuant to
clause (1), distribution of this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
;

(iii) $24 shall be deposited in the county general fund for amendment to a declaration;

(iv) $20 shall be deposited in the county general fund for each multiple entry
used; and

(v) $34 shall be deposited in the county general fund for an amended floor plan;

(14) for issuance of a CECT pursuant to section 508.351, $40;

(15) for filing a common interest community declaration and a CIC plat complying
with section 515B.2-110, paragraph (c); an amendment to a common interest community
declaration and a related amendment to a CIC plat complying with section 515B.2-110,
paragraph (c); or a supplemental declaration and a related supplemental CIC plat
complying with section 515B.2-110, paragraph (c), each of which related documents
shall be considered a single document, the filing fee shall be $56 for the first certificate
upon which the document is registered, and for multiple certificate entries, $20 for each
additional certificate upon which the document is registered. For filing any other document
affecting two or more units in a common interest community, the filing fee shall be $46
for the first certificate upon which the document is registered, and for multiple certificate
entries, $20 for each additional certificate upon which the document is registered. The
same fees shall apply to filing any document affecting two or more units or other parcels
subject to a master declaration. Pursuant to clause (1), distribution of this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
;

(iii) $24 shall be deposited in the county general fund for the filing of an amendment
complying with section 515B.2-110, subsection (c);

(iv) $20 shall be deposited in the county general fund for each multiple entry
used; and

(v) $34 shall be deposited in the county general fund for the filing of a condominium
or CIC plat or amendment;

(16) for a copy of a condominium floor plan filed in accordance with chapter 515,
or a copy of a common interest community plat complying with section 515B.2-110,
subsection (c)
, the fee shall be $1 for each page of the floor plan or common interest
community plat with a minimum fee of $10;

(17) for the filing of a certified copy of a plat of the survey pursuant to section
508.23 or 508.671, $46. Pursuant to clause (1), distribution of this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $24 shall be deposited in the county general fund;

(18) for filing a registered land survey in triplicate in accordance with section
508.47, subdivision 4, $56. Pursuant to clause (1), distribution of this fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $34 shall be deposited in the county general fund; and

(19) for furnishing a certified copy of a registered land survey in accordance with
section 508.47, subdivision 4, $15.

new text begin (b) During the period from the effective date of sections 583.40 to 583.49 through
December 31, 2012, the fee under paragraph (a), clause (4), for entry of a memorial of a
notice of pendency of a foreclosure by advertisement under section 580.032 or a notice of
lis pendens for a foreclosure by action under section 557.02 is increased by $125; this
amount is to be paid to the state treasury and credited to the Homestead-Lender Mediation
Act account in the special revenue fund.
new text end

Sec. 3.

Minnesota Statutes 2008, section 508A.82, subdivision 1, is amended to read:


Subdivision 1.

Standard documents.

new text begin(a) new text endThe fees to be charged by the registrar of
titles shall be and not exceed the following:

(1) of the fees provided herein, $1.50 of the fees collected under clauses (2), (3),
(5), (12), (14), (16), and (19) for filing or memorializing shall be paid to the state treasury
pursuant to section 508.75 and credited to the general fund;

(2) for registering a first CPT, including issuing a copy of it, $46. Pursuant to clause
(1), distribution of the fee is as follows:

(i) $10.50 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $25.50 shall be deposited in the county general fund;

(3) for registering each instrument transferring the fee simple title for which a
new CPT is issued and for the registration of the new CPT, including a copy of it, $46.
Pursuant to clause (1), distribution of the fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $24 shall be deposited in the county general fund;

(4) for issuance of a CECT pursuant to section 508A.351, $40;

(5) new text beginsubject to paragraph (b), new text endfor the entry of each memorial on a CPT, $46; for
multiple certificate entries, $20 thereafter. Pursuant to clause (1), distribution of the fee
is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
;

(iii) $24 shall be deposited in the county general fund; and

(iv) $20 shall be deposited in the county general fund for each multiple entry used;

(6) for issuing each residue CPT, $40;

(7) for exchange CPTs or combined certificates of title, $20 for each CPT and
certificate of title canceled and $20 for each new CPT or combined certificate of title
issued;

(8) for each CPT showing condition of the register, $50;

(9) for any certified copy of any instrument or writing on file or recorded in the
registrar of titles' office, $10;

(10) for a noncertified copy of any CPT, other than the copies issued under clauses
(2) and (3), any instrument or writing on file or recorded in the office of the registrar of
titles, or any specified page or part of it, an amount as determined by the county board for
each page or fraction of a page specified. If computer or microfilm printers are used to
reproduce the instrument or writing, a like amount per image;

(11) for a noncertified copy of any document submitted for recording, if the original
document is accompanied by a copy or duplicate original, $2. Upon receipt of the copy
or duplicate original and payment of the fee, a registrar of titles shall return it marked
"copy" or "duplicate," showing the recording date and, if available, the document number
assigned to the original;

(12) for filing two copies of any plat in the office of the registrar, $56. Pursuant to
clause (1), distribution of the fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $34 shall be deposited in the county general fund;

(13) for any other service under sections 508A.01 to 508A.85, the fee the court
shall determine;

(14) for filing an amendment to a declaration in accordance with chapter 515, $46
for each certificate upon which the document is registered and for multiple certificate
entries, $20 thereafter; $56 for an amended floor plan filed in accordance with chapter
515. Pursuant to clause (1), distribution of the fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
;

(iii) $24 shall be deposited in the county general fund for amendment to a declaration;

(iv) $20 shall be deposited in the county general fund for each multiple entry
used; and

(v) $34 shall be deposited in the county general fund for an amended floor plan;

(15) for issuance of a CECT pursuant to section 508.351, $40;

(16) for filing an amendment to a common interest community declaration, including
a supplemental declaration, and plat or amendment complying with section 515B.2-110,
subsection (c)
, and issuing a CECT if required, $46 for each certificate upon which the
document is registered and for multiple certificate entries, $20 thereafter; $56 for the filing
of the condominium or common interest community plat or amendment. See section
515B.1-116 for special requirement relating to a common interest community. Pursuant to
clause (1), distribution of the fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
;

(iii) $24 shall be deposited in the county general fund for the filing of an amendment
complying with section 515B.2-110, subsection (c);

(iv) $20 shall be deposited in the county general fund for each multiple entry
used; and

(v) $34 shall be deposited in the county general fund for the filing of a condominium
or CIC plat or amendment;

(17) for a copy of a condominium floor plan filed in accordance with chapter 515,
or a copy of a common interest community plat complying with section 515B.2-110,
subsection (c)
, the fee shall be $1 for each page of the floor plan, or common interest
community plat with a minimum fee of $10;

(18) in counties in which the compensation of the examiner of titles is paid in
the same manner as the compensation of other county employees, for each parcel of
land contained in the application for a CPT, as the number of parcels is determined by
the examiner, a fee which is reasonable and which reflects the actual cost to the county,
established by the board of county commissioners of the county in which the land is
located;

(19) for filing a registered land survey in triplicate in accordance with section
508A.47, subdivision 4, $56. Pursuant to clause (1), distribution of the fee is as follows:

(i) $12 shall be paid to the state treasury and credited to the general fund;

(ii) $10 shall be deposited in the technology fund pursuant to section 357.18,
subdivision 3
; and

(iii) $34 shall be deposited in the county general fund; and

(20) for furnishing a certified copy of a registered land survey in accordance with
section 508A.47, subdivision 4, $15.

new text begin (b) During the period from the effective date of sections 583.40 to 583.49 through
December 31, 2012, the fee under paragraph (a), clause (5), for entry of a memorial of a
notice of pendency of a foreclosure by advertisement under section 580.032 or a notice of
lis pendens for a foreclosure by action under section 557.02 is increased by $125; this
amount is to be paid to the state treasury and credited to the Homestead-Lender Mediation
Act account in the special revenue fund.
new text end

Sec. 4.

new text begin HOMESTEAD-LENDER MEDIATION ACT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Homestead-Lender Mediation Act account is
established in the state treasury.
new text end

new text begin Subd. 2. new text end

new text begin Generally. new text end

new text begin The Homestead-Lender Mediation Act account shall be
administered by the Minnesota Housing Finance Authority for the purposes described in
this section. Any interest or profit accruing from investment of money in the account shall
be credited to the Homestead-Lender Mediation Act account.
new text end

new text begin Subd. 3. new text end

new text begin Expenditures. new text end

new text begin (a) Money in the Homestead-Lender Mediation Act
account may only be used:
new text end

new text begin (1) to pay for the compensation of mediators appointed by the attorney general under
the Homestead-Lender Mediation Act, Minnesota Statutes, section 583.42, subdivision 3;
new text end

new text begin (2) for reasonable reimbursement for staff and other administrative costs incurred by
the attorney general associated with the Homestead-Lender Mediation Act; and
new text end

new text begin (3) for reimbursement of any funds deposited into the Homestead-Lender Mediation
Act account in advance of sufficient revenue to the account.
new text end

new text begin (b) Money in the Homestead-Lender Mediation Act account is appropriated to the
Minnesota Housing Finance Authority to make payments as provided in this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation and reimbursement. new text end

new text begin (a) Upon expiration of the
Homestead-Lender Mediation Act, as specified in Minnesota Statutes, section 583.50, any
unused funds left in the Homestead-Lender Mediation Act account shall be transferred
to the general fund.
new text end

new text begin (b) Services provided under the Homestead-Lender Mediation Act are on a
first-come, first-served basis to the extent of available funds in the Homestead-Lender
Mediation Act account.
new text end

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2009.
new text end