Minnesota § 325F.691 UNREASONABLE DELAY IN MORTGAGE LOAN CLOSING

Minnesota Statutes

§ 325F.691 — UNREASONABLE DELAY IN MORTGAGE LOAN CLOSING

Minnesota § 325F.691

PartTRADE REGULATIONS, CONSUMER PROTECTION

Ch. 325FCONSUMER PROTECTION; PRODUCTS AND SALES

This text of Minnesota § 325F.691 (UNREASONABLE DELAY IN MORTGAGE LOAN CLOSING) is published on Counsel Stack Legal Research, covering Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Minn. Stat. § 325F.691 (2026).

Text

Subdivision 1.Prohibited conduct.

(a)A lender, as defined in section47.206, who causes unreasonable delay in processing a loan application beyond the expiration date of an interest rate or discount point agreement is liable to the borrower for a penalty in an amount not to exceed the borrower's actual out-of-pocket damages, including the present value of the increased interest costs over the normal life of the loan, or specific performance of the agreement. This paragraph applies to an agreement entered into after July 1, 2004.

(b)For purposes of this section, evidence of unreasonable delay includes, but is not limited to:

(1)failure of the lender to return telephone calls or otherwise respond to the borrower's inquiries concerning the status of the loan;

(2)the addition by the lender

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Subdivision 1.Prohibited conduct.
(a) A lender, as defined in section47.206, who causes unreasonable delay in processing a loan application beyond the expiration date of an interest rate or discount point agreement is liable to the borrower for a penalty in an amount not to exceed the borrower's actual out-of-pocket damages, including the present value of the increased interest costs over the normal life of the loan, or specific performance of the agreement. This paragraph applies to an agreement entered into after July 1, 2004.
(b) For purposes of this section, evidence of unreasonable delay includes, but is not limited to:
(1) failure of the lender to return telephone calls or otherwise respond to the borrower's inquiries concerning the status of the loan;
(2) the addition by the lender of new requirements for processing or approving the loan that were not disclosed to the borrower under section47.206, subdivision 2, clause (3), unless the requirements result from governmental agency or secondary mortgage market changes, other than changes in interest rates, that occur after the date of the agreement; or
(3) failure by the lender to take actions necessary to process or approve the loan within a reasonable period of time, if the borrower provided information requested by the lender in a timely manner.

Subd. 2.Additional penalty.
In addition to the remedies in subdivision 1 of this section, a lender is liable to the borrower for $500 for each unreasonable delay in processing a loan application which causes an interest rate or discount point agreement to expire before closing.