DocMagic is making updates to the Minnesota Interest Rate or Discount Point Agreement (Form ID: MNIR.MSC) by adding detailed language to the Interest Rate, Discount Point and Processing sections.
Pursuant to Minn. Stat. Ann. § 47.206 (2), the interest rate or discount point agreement is required to include:
(1) a definite expiration date or term of the agreement, which may not be less than the reasonably anticipated closing date or time required to process, approve, and close the loan;
(2) the circumstances, if any, under which the borrower will be permitted to close at a lower rate of interest or points than expressed in the agreement;
(3) the steps required to process, approve, and close the loan, including the actions required of the borrower and lender;
(4) that the agreement is enforceable by the borrower; and
(5) the consideration required for the agreement.
The Interest Rate and Discount Point sections of the form will each include a statement that the interest rate or discount point cannot be reduced during the “lock” period and that the agreed upon term is valid until the expiration date, after which time it is subject to change.
The Processing section has also been updated to include standard language regarding the steps that are needed to process, approve, and close the loan. The form also allows the option to list closing conditions for this requirement instead of the default language. This option is available upon request.
DocMagic will begin providing the updated Minnesota Interest Rate or Discount Point Agreement in production on October 6, 2022 and has made the form available in our testing environment.
If you have any questions, please contact DocMagic’s Compliance Department.
