HF3627 Summary

• Requires reverse mortgage loan servicers to send copies of written communications regarding delinquencies, defaults, and unfulfilled obligations to a borrower-designated third-party (such as a family member) by first-class mail, effective August 1, 2020.

• Servicers must also send copies of such communications to the independent counseling agency identified in the loan agreement at the same time they contact the borrower and third-party designee.

• Requires lenders to provide prospective borrowers with a blank authorization form (in at least 14-point type) during counseling sessions, allowing borrowers to designate a third-party to receive loan communications.

• Establishes compliance mechanisms including recording affidavits with the county recorder and creates a rebuttable presumption of non-compliance if no recorded affidavit is filed.

• Allows borrowers to pursue a cause of action under Minnesota Statutes section 582.043 if servicers fail to comply with communication requirements, with actions permitted before the redemption period expires under section 580.23.