Minn. Stat. Ann. § 58.13(1)(a)(12) stipulates that:
“(a) No person acting as a residential mortgage originator or servicer, including a person required to be licensed under this chapter, and no person exempt from the licensing requirements of this chapter under section 58.04, except as otherwise provided in paragraph (b), shall:
(12) issue any document indicating conditional qualification or conditional approval for a residential mortgage loan, unless the document also clearly indicates that final qualification or approval is not guaranteed, and may be subject to additional review;”
Since loan commitment and lock-in agreement documents can be considered a “conditional approval” or “conditional qualification,” we have added language to our MN Commitment Agreement (Cx18229) and Lock-in Agreement (Cx18228) to satisfy the requirements of MSA § 58.13(1)(a)(12). The language we have added states:
Please note that this Agreement only confirms your conditional qualification or conditional approval for the type of loan for which you have been qualified or approved, and that final qualification or approval is not guaranteed and may be subject to additional review.
This change will be in effect on October 19, 2017. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.