MN HF1941

Establishes a mandatory residential mortgage foreclosure mediation program administered by the Office of Administrative Hearings for foreclosures on 1-4 family residential properties where the owner occupies one unit as their principal residence.

Applies to foreclosing entities that have foreclosed at least 125 residential homes in the prior year; requires entities to notify homeowners and the Office of Administrative Hearings of default no earlier than 45 days after delinquency and to participate in good faith mediation before proceeding with foreclosure.

Requires foreclosing entities to provide homeowners with loss mitigation information, bring required documents to mediation (mortgage, note, account statements, payment history, appraisals), and designate a single point of contact throughout the process.

Mediators appointed by the Office of Administrative Hearings must determine if parties participated in good faith; foreclosing entities must obtain either a fully executed opt-out notice or affidavit of good faith in mediation before proceeding with foreclosure sale or judgment.

Allows mediators to void liens held by subsequent lienholders (over $5,000) who fail to participate in good faith; appropriates funds from general fund to the Office of Administrative Hearings to operate the mediation program.