HF2175 Summary

• Establishes regulations for nonbank mortgage servicers in Minnesota, applying to entities that service at least 2,000 residential mortgage loans, excluding whole loans owned and reverse mortgage-only servicers.

• Requires covered institutions to maintain capital and liquidity in compliance with financial condition standards, including servicing liquidity for mortgage servicing rights and operating liquidity for normal business operations, based on Federal Housing Finance Agency eligibility requirements or sustainable written methodologies.

• Mandates covered institutions establish and maintain a board of directors responsible for corporate governance oversight, compliance monitoring, and accurate regulatory reporting through quarterly or annual mortgage call reports.

• Requires annual external audits by independent public accountants and establishes internal audit requirements appropriate to the servicer's size and complexity, with results made available to the commissioner.

• Mandates covered institutions establish risk management programs to identify, measure, monitor, and control risk commensurate with their size and complexity, including annual risk management assessments with formal reports to the board of directors.