The state of Minnesota has state specific laws that apply to the use of private mortgage insurance in addition to the federal provisions set forth in the Homeowners Protection Act (HPA). Due to these additional Minnesota provisions, Docutech provides a Minnesota specific private mortgage insurance disclosure (Cx2530) that contains both the Minnesota and the federally required disclosures.
However, due to differences in the two statutory structures, there are transactions where the Minnesota statute would apply, but the transaction would be exempted from coverage under the HPA. The application of the federal HPA is limited to a “residential mortgage” that is defined, in part, as “a single-family dwelling that is the principal residence of the mortgagor.” [12 USC 4901(14)]. The Minnesota statutory coverage, however, is not limited to single family residences [see Minn. Stat. Ann. § 47.207(3)(a)]. Therefore, in the circumstance when the subject property is secured by anything but a single-family residence, only the Minnesota provisions related to private mortgage insurance would apply.
We have updated our Minnesota Private Mortgage Insurance Disclosure (Cx2530) to remove the references to the automatic termination provided under the HPA in circumstances when the Minnesota statute applies but the HPA does not (i.e. when the property is not a single family residence).
For more information on the interrelations between state and federal law regarding mortgage insurance please see this article: https://compliance.docutech.com/2019/06/25/the-interrelations-of-laws-and-rules-affecting-mortgage-insurance/
These changes will be in effect on October 13, 2021. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.2584.