SF 241

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to mortgage lending; prohibiting sale of certain information arising
from a mortgage loan 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, the existence of a credit inquiry
arising from a consumer mortgage loan application. This subdivision does not apply
to information provided by a mortgage originator or servicer to a third party providing
services in connection with the mortgage loan origination or servicing; a proposed or
actual securitization; secondary market sale, including sales of servicing rights; or similar
transaction related to the consumer 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