Bipartisan legislation chief-authored by Senator Eric Pratt (R-Prior Lake) to maintain current mortgage consumer protections and help mainly first time home buyers obtain mortgages passed the Minnesota Senate unanimously. The bill simply removes the phrase “subprime mortgage” from state statute but leaves existing consumer protections from early payoff penalties in place, aimed at home buyers acquiring mortgages. The legislation is supported by both consumer protection groups and industry leaders from the mortgage and real estate sector.

“By working together, we were able to develop a solution that helps Minnesota home buyers,” said Senator Pratt, who serves as the Chair of the Senate Jobs and Economic Growth Committee. “Through this bill, we not only aim to continue to promote home ownership, but also ensure that Minnesotans are protected during the home buying process.”

The legislation has passed both the Senate and House of Representatives. It will now head to Governor Walz for his signature.