Mortgage Transparency Act signed into law
A measure designed to help homeowners looking to refinance their mortgage has been signed into law by Gov. Dayton.
The proposal, sponsored by Sen. Terri Bonoff, DFL-Minnetonka, is aimed at helping homeowners determine who owns their mortgage note. As mortgages are sold by financial institutions, homeowners may find themselves sending monthly checks to a mortgage servicing company without understanding who actually owns the underlying mortgage note.
This situation can become complicated for homeowners when they are facing foreclosure or need to refinance, and are unable to determine how to contact the company that actually controls their mortgage. Many homeowners have reported facing roadblocks when attempting to find out who owns their mortgage note.
Sen. Bonoff’s bill would require transaction agents and servicers, upon written request from a mortgagor, to disclose the identity of and contact information for the owner of the note that is secured by the mortgage.
“With the price of homes and land changing drastically in recent years, many homeowners have worked with their banks to refinance their mortgages,” said Sen. Bonoff. “Unfortunately, some have run into resistance when attempting to contact the owner of their mortgage note to inquire about refinancing. This bill puts in place a simple and clear path for homeowners to find out who owns their mortgage, and who they need to contact to discuss their options.”
Sen. Bonoff worked closely with the Minnesota Bankers Association, Minnesota Credit Union network, MN Bar Association and others to craft the legislation. The bill received broad, bipartisan support.
“This bill represents a truly collaborative effort,” said Sen. Bonoff. “By working together, we were able craft a policy that brings transparency to a very muddy area.”