Minnesota Servicing Reference Guide
- Kacey Olson
| Citation | Topic | Requirement |
| Minn. Stat. Ann. §580.30(1) | Amount Necessary to Reinstate the Mortgage | Subdivision 1.Reinstatement. In any proceedings for the foreclosure of a real estate mortgage, whether by action or by advertisement, if at any time before the sale of the premises under such foreclosure the mortgagor, the owner, or any holder of any subsequent encumbrance or lien, or any one for them, shall pay or cause to be paid to the holder of the mortgage so being foreclosed, or to the attorney foreclosing the same, or to the sheriff of the county, the amount actually due thereon and constituting the default actually existing in the conditions of the mortgage at the time of the commencement of the foreclosure proceedings, including insurance, delinquent taxes, if any, upon the premises, interest to date of payment, cost of publication and services of process or notices, attorney's fees not exceeding $150 or one-half of the attorney's fees authorized by section 582.01, whichever is greater, any costs incurred when an order to reduce a mortgagor's redemption period under section 582.032 is entered, including costs and disbursements awarded under section 582.032, subdivision 9, together with other lawful disbursements necessarily incurred in connection with the proceedings by the party foreclosing, then, and in that event, the mortgage shall be fully reinstated and further proceedings in such foreclosure shall be thereupon abandoned. The holder of a mortgage shall inform the mortgagor of the amount necessary to reinstate the mortgage within three days of receipt of a request for a reinstatement amount from the mortgagor. If the amount necessary to reinstate the mortgage was not mailed to the mortgagor within three days of receipt of the request, no liability accrues to the party foreclosing the mortgage or the party's attorney and the foreclosure is not invalidated if the mortgage reinstatement amount was mailed by first class mail to the mortgagor at least three days prior to the date of the completed sheriff's sale. Notwithstanding any law to the contrary, the holder of a mortgage has no obligation to delay or postpone a foreclosure sale upon receipt of a request for a reinstatement amount when that request was made less than three days prior to the sale. The reinstatement amount provided is effective for a period of seven days after the holder of the mortgage provides it to the mortgagor or until the foreclosure sale, whichever occurs first. |
Minn. Stat. Ann. §580.025 | Certificate of Sale - Non-Judicial | When any sale of real property is made under a power of sale contained in any mortgage, the officer shall make and deliver to the purchaser a certificate, executed in the same manner as a conveyance, containing: (1) a description of the mortgage; (2) a description of the property sold; (3) the price paid for each parcel sold; (4) the time and place of the sale, and the name of the purchaser; (5) the interest rate in effect on the date of the sheriff's sale; and (6) the time allowed by law for redemption, provided that if the redemption period stated in the certificate is five weeks and a longer redemption period was stated in the published notice of foreclosure sale, a certified copy of the court order entered under section 582.032, authorizing reduction of the redemption period to five weeks, must be attached to the certificate. A certificate which states a five-week redemption period must be recorded within ten days after the sale; any other certificate must be recorded within 20 days after the sale. When so recorded, upon expiration of the time for redemption, the certificate shall operate as a conveyance to the purchaser or the purchaser's assignee of all the right, title, and interest of the mortgagor in and to the premises named therein at the date of such mortgage, without any other conveyance. A certificate must not contain a time allowed for redemption that is less than the time specified by section 580.23, 582.032, or 582.32, whichever applies. |
| Financial Corporations / Minn. Stat. Ann. §47.59(9a) | Crediting of Payment | A financial institution servicer must credit a payment to a borrower's account as of the date of receipt except when a delay in crediting does not result in a finance or other charge. However, the lender or servicer must credit the payment within 5 days of receipt when the loan agreement or periodic statement specifies requirements for the borrower to follow and the lender accepts a payment that does not conform to those requirements. |
| Minn. Stat. Ann. §582.30 | Deficiency Judgment | Subdivision 1.Deficiency allowed. (a) Except as provided in this section, a person holding a mortgage may obtain a deficiency judgment against the mortgagor if the amount a person holding a mortgage receives from a foreclosure sale is less than: (2) the amount of the judgment entered under chapter 581. (b) Except as provided in subdivisions 3 and 5, the judgment may not be for more than the difference between the amount received from the foreclosure sale less expenses and costs and: (1) for a foreclosure by advertisement, the total amount that attaches to the sale proceeds under chapter 580; or (2) for a foreclosure by action, the amount of the judgment entered under chapter 581. (c) Subdivisions 3 to 9 do not apply to mortgages entered or amended on or after May 22, 1999, if the mortgaged property is used in agricultural production only by a tenant who is not the mortgagor. §Subd. 2.Not if six-month or five-week redemption period. 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, or five weeks under section 582.032. |
| Mortgages; Foreclosure, General Provisions / Minn. Stat. Ann. §582.042(1) | Designation of Separate Tracts Notice | If a mortgage on real property that is agricultural land is foreclosed and the property contains separate tracts, the person in possession of the real property must be notified by the foreclosing mortgagee that the separate tracts may be sold and redeemed separately. The notice must be served with the summons and complaint. |
| Mortgages; Foreclosure, General Provisions / Minn. Stat. Ann. §582.043(6) | Dual Tracking | If a servicer receives a loss mitigation application, there are a number of requirements a servicer must meet. Please refer to the citation for the various stages of foreclosure and associated actions. |
| Mortgages; Foreclosure by Advertisement / Minn. Stat. Ann. §580.021(2) | Foreclosure Prevention Counseling Notice | Prior to the time a notice of pendency or lis pendens is recorded on a 1-4 family owner occupied dwelling, a party foreclosing a mortgage must provide to the mortgagor: (1) information that foreclosure prevention counseling services provided by an authorized foreclosure prevention counseling agency are available; and (2) notice that the foreclosing party will transmit the homeowner's name, address, and telephone number to an approved foreclosure prevention agency. The provision applies to the foreclosure of mortgages by advertisement and by action. |
| Mortgages; Foreclosure by Advertisement / Minn. Stat. Ann. §580.041(2) | Help For Homeowners in Foreclosure - Foreclosure Advice Notice | If a foreclosure by advertisement or by action involves an owner occupied property consisting of 1-4 family dwelling units, a Foreclosure Advice Notice must be delivered with the Notice of Sale. |
| Mortgages; Foreclosure, General Provisions / Minn. Stat. Ann. §582.041(1) | Homestead Designation Notice | If a mortgage on real property is foreclosed and the property contains a portion of a homestead, the person in possession of the real property must be notified by the foreclosing mortgagee that the homestead may be sold and redeemed separately from the remaining property. The notice must be served with the notice of foreclosure. |
| MN Residential Mortgage Originator and Servicer Licensing Act | Minn. Stat. Ann. §47.20(6b); §47.59(6) | Late Payment Fees | §Subd. 6b.Delinquency or late payment fees. A lender making a conventional loan may assess and collect fees for late payments according to the provision of section 47.59. §Subd. 6.Additional charges. (a) For purposes of this subdivision, "financial institution" includes a person described in subdivision 4, paragraph (a). In addition to the finance charges permitted by this section, a financial institution may contract for and receive the following additional charges that may be included in the principal amount of the loan or credit sale unpaid balances: (4) a delinquency charge on a payment, including the minimum payment due in connection with open-end credit, not paid in full on or before the tenth day after its due date in an amount not to exceed five percent of the amount of the payment or $7.80, whichever is greater |
| Minn. Stat. Ann. §47.20(8) | Notice of Default | Subd. 8.Conventional loan provisions. A lender making a conventional loan shall comply with the following: (3) The mortgage evidencing a conventional loan shall contain a provision whereby the lender, if it intends to foreclose, agrees to give the borrower written notice of any default under the terms or conditions of the promissory note or mortgage, by sending the notice by certified mail to the address of the mortgaged property or such other address as the borrower may have designated in writing to the lender. The lender need not give the borrower the notice required by this paragraph if the default consists of the borrower selling the mortgaged property without the required consent of the lender. The mortgage shall further provide that the notice shall contain the following provisions: (a) the nature of the default by the borrower; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is mailed by which the default must be cured; (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by the mortgage and sale of the mortgaged premises; (e) that the borrower has the right to reinstate the mortgage after acceleration; and (f) that the borrower has the right to bring a court action to assert the nonexistence of a default or any other defense of the borrower to acceleration and sale. |
| Actions Relating to Real Property / Minn. Stat. Ann. §557.02 | Notice of Lis Pendens | In all actions in which the title to, or any interest in or lien upon, real property is involved or affected, any party may file for record a notice of the pendency of the action at the time of filing the complaint or at any time during the pendency of the action. The notice must be filed with the county recorder of each county in which any part of the premises lies. When any pleading is amended in the action, so as to alter the description of, or to extend the claim against, the premises affected, a new notice may be filed, with like effect. The notice must be recorded in the same manner in which mortgages are recorded, and may be discharged by writing executed and acknowledged in the manner of conveyance. |
| Mortgages; Foreclosure by Advertisement / Minn. Stat. Ann. §580.032(3) | Notice of Pendency | A person foreclosing a mortgage by advertisement must record a notice of the pendency of the foreclosure with the county recorder or registrar of titles in the county in which the property is located prior to the first date of publication of the Notice of Sale but not more than 6 months prior to the first date of publication. |
| Mortgages; Foreclosure by Advertisement / Minn. Stat. Ann. §580.041 | Notice of Redemption Rights | The notice of redemption rights must be delivered with the notice of foreclosure |
| Financial Corporations / Minn. Stat. Ann. §47.207(2) | Notice of Right to Cancel Private Mortgage Insurance | Must be provided annually to a borrower currently paying premiums for private mortgage insurance. It must be on its own page but may be included with other disclosures or notices required to be sent to the borrower by federal law. |
| Executions, Redemptions, Exemptions / Minn. Stat. Ann. §550.18(2) | Notice of Sale - Judicial foreclosure | Prior to the sale of property on execution notice must be provided by posting and publishing a Notice of Sale for 6 weeks. The Notice of Sale must contain the time and place of the sale and must describe the property with sufficient certainty to enable a person of common understanding to identify it. |
Mortgages; Foreclosure by Advertisement / Minn. Stat. Ann. §580.04 | Notice of Sale - Non-judicial foreclosure | A copy of the Notice of Sale must be served (in a similar manner as a summons in a civil action in the district court) upon the person in possession of the mortgaged premises at least 4 weeks before the appointed time of the foreclosure sale. A copy of the Notice of Sale must also be mailed, at least 14 days prior to the date of sale, to each person requesting notice in a recorded request for notice. The Notice of Sale must be sent to the address specified in the recorded request for notice. The Notice of Sale is deemed given upon deposit in the United States mail first class, postage prepaid, and addressed to the person requesting notice. In addition, the Notice of Sale must be published for at least 6 weeks. Subdivision 1.Location of qualified newspaper. For purposes of this chapter, publication of the notice of sale is sufficient if it occurs: (1) in a qualified newspaper having its known office of issue located in the county where the mortgaged premises, or some part of the mortgaged premises are located; or (2) in a qualified newspaper having its known office of issue located in an adjoining county, if the publisher of the newspaper states, in the sworn affidavit of publication required by section 331A.07, that a substantial portion of the newspaper's circulation is in the county where the mortgaged premises, or some part of the mortgaged premises are located. In all cases, the affidavit of publication must state the county where the newspaper's known office of issue is located and that the newspaper complies with the conditions described in clause (1) or (2). |
| Financial Corporations / Minn. Stat. Ann. §47.205(2) | Notice of Transfer of Servicing | If the servicing of mortgage loans is sold or assigned to another person: (1) the selling lender must notify the borrower of the sale no more than 10 days after the actual date of transfer; (2) the purchasing lender must issue corrected coupon or payment books, if used, and must provide notification to the borrower within 20 days after the first payment to the purchasing lender is due, of the name, address, and telephone number of the person from whom the borrower can receive information regarding the servicing of the loan, and must inform the borrower of any changes made regarding the mortgage escrow accounts or servicing requirements including, but not limited to, interest rate, monthly payment amount, and current escrow balance; and (3) the purchasing lender must respond within 15 business days to a written request for information from a borrower. |
| Mortgages; Foreclosure, General Provisions / Minn. Stat. Ann. §582.043(5) | Notification of Loss Mitigation Options | A servicer must notify a mortgagor in writing of available loss mitigation options offered by the servicer that are applicable to the mortgagor's loan before referring the mortgage loan to an attorney for foreclosure. |
| Minn. Stat. Ann. §550.18(3) | Order Directing Sale | Before the sale of property on execution notice shall be given as follows: (3) a judgment creditor shall record a certified copy of the order directing sale of real property issued pursuant to section 550.175, if the real property is a homestead, with the county recorder or registrar of titles as appropriate in the county in which the real property is located before the first date of publication of the notice of sale required under clause (2). |
| Regulated Loan Act / Minn. Stat. Ann. §56.14(2) | Payment Receipt | A licensee must deliver to a borrower, without request, a written receipt within 30 days following a payment by coin or currency (a cash payment) made on account of any loan. See citation for further details. |
| Regulated Loan Act / Minn. Stat. Ann. §56.14(4) | Release of Mortgage | Upon repayment of the loan in full, a licensee must mark indelibly every obligation and security, other than a mortgage or security agreement which secures a new loan to the licensee, signed by the borrower with the word “Paid” or “Canceled,” and release any mortgage or security agreement which no longer secures a loan to the licensee, restore any pledge, and cancel and return any note, and any assignment given to the licensee which does not secure a new loan to the licensee within 20 days after the repayment. The document including actual evidence of an obligation or security may be maintained, stored, and retrieved in a form or format acceptable to the Department. |
| Minn. Stat. Ann. §580.30(1) | Reinstatement Quote | The holder of a mortgage shall inform the mortgagor of the amount necessary to reinstate the mortgage within three days of receipt of a request for a reinstatement amount from the mortgagor. If the amount necessary to reinstate the mortgage was not mailed to the mortgagor within three days of receipt of the request, no liability accrues to the party foreclosing the mortgage or the party's attorney and the foreclosure is not invalidated if the mortgage reinstatement amount was mailed by first class mail to the mortgagor at least three days prior to the date of the completed sheriff's sale. Notwithstanding any law to the contrary, the holder of a mortgage has no obligation to delay or postpone a foreclosure sale upon receipt of a request for a reinstatement amount when that request was made less than three days prior to the sale. The reinstatement amount provided is effective for a period of seven days after the holder of the mortgage provides it to the mortgagor or until the foreclosure sale, whichever occurs first. |
| Financial Corporations / Minn. Stat. Ann. §47.207(4) | Servicer Response to PMI Cancellation Request | Within 30 days of receipt of a borrower's written request to cancel PMI, a servicer must: (1) provide a written notice to the insurer to cancel the PMI and written notice to the borrower that a request for cancellation has been sent to the insurer if the servicer determines that the PMI should be canceled; (2) provide a written response to the borrower identifying all additional information needed from the borrower if the servicer reasonably needs more information from the borrower to determine whether the borrower is eligible for cancellation of PMI; or (3) provide a written notice to the borrower of the reasons for the servicer's refusal to cancel the PMI if the servicer determines that the borrower does not meet the requirements for cancellation of PMI. If a lender, or any other person involved in the mortgage transaction, receives a written request for cancellation of PMI, the lender or other person must promptly forward the borrower's request for cancellation to the servicer, if the servicer is known to the lender or other person. If the servicer is not known to the lender or other person, the lender or other person must advise the borrower to contact the company to which the borrower sends the monthly payment. |