H.F. No. 4670 Summary

• Prohibits lenders from exercising due-on-sale clauses on residential real property loans for transfers involving death (transfer on death deeds, devise, descent, or joint tenant operation of law)

• Prohibits lenders from exercising due-on-sale clauses when borrower's spouse or children become owners through property settlement agreements, dissolution of marriage decrees, or legal separation agreements

• Prohibits lenders from exercising due-on-sale clauses when borrower transfers property into an inter vivos trust while remaining a beneficiary and without transferring occupancy rights

• Exempts reverse mortgages made under Minnesota Statutes section 47.58 from these due-on-sale limitations

• Creates a cause of action for aggrieved persons to seek equitable relief, reasonable attorney fees, and costs for violations; requires creditors who accept late payments to provide advance written notice before repossessing property