language to be deleted (2) new language
Laws of Minnesota 1991 CHAPTER 201-S.F.No. 1411 An act relating to housing; requiring counseling for reverse mortgage loans; providing penalties; amending Minnesota Statutes 1990, section 47.58, by adding a subdivision. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 1990, section 47.58, is amended by adding a subdivision to read: Subd. 8. [COUNSELING; REQUIREMENT; PENALTY.] A lender, mortgage banking company, or other mortgage lender not related to the mortgagor must keep a certificate on file documenting that the borrower, prior to entering into the reverse mortgage loan, received counseling as defined in this subdivision from an organization that meets the requirements of section 462A.28, subdivision 1, and is a housing counseling agency approved by the Department of Housing and Urban Development. The certificate must be signed by the mortgagor and the counselor and include the date of the counseling, the name, address, and telephone number of both the mortgagor and the organization providing counseling. A failure by the lender to comply with this act results in a $1,000 civil penalty payable to the mortgagor. For the purposes of this subdivision, "counseling" means the following services are provided to the borrower: (1) a review of the advantages and disadvantages of reverse mortgage programs; (2) an explanation of how the reverse mortgage affects the borrower's estate and public benefits; (3) an explanation of the lending process; (4) a discussion of the borrower's supplemental income needs; and (5) an opportunity to ask questions of the counselor. Presented to the governor May 23, 1991 Signed by the governor May 27, 1991, 10:40 p.m.