MN HF2825

Requires state-chartered banks to offer refinancing at lower interest rates to qualifying home mortgage borrowers whose loan-to-value ratio exceeds 100 percent.

Applies to loans originated before January 1, 2009, with current interest rates of 5.25 percent or higher, where borrowers are current on payments and have not been delinquent in the preceding 12 months.

Banks must make refinancing offers within 60 days of enactment, with fees limited to actual and reasonably incurred refinancing costs only.

Borrowers have at least 60 days to accept the refinancing offer after receiving the bank's communication.

If a bank fails to comply and initiates foreclosure, the redemption period extends to 12 months instead of the standard period under Minnesota law.