Minnesota passed a bill requiring lenders and servicers to communicate with third-party designees and independent counseling agencies in the event of reverse mortgage loan default. Under the bill, a borrower of a reverse mortgage loan may provide an Authorization Form to the lender authorizing a third-party designee and the counseling agency that provided reverse mortgage counseling to receive copies of any written communications from the servicer regarding default and other unfulfilled obligations that could result in foreclosure. In the event the borrower makes such authorization, the servicer must send to the third-party designee and counseling agency copies of any unanswered written communications, and all subsequent written communications, from the servicer to the borrower regarding delinquencies, defaults and unfulfilled obligations that may result in foreclosure. The servicer is only required to send the communications to a counseling agency if the servicer is required to send the communications to a third-party designee. The bill becomes effective August 1, 2021.
See Minnesota State Legislature website for the full text of the Statutes: https://www.revisor.mn.gov/bills/text.php?number=HF333&session_year=2021&session_number=0&version=latest&format=pdf
