Minnesota issued an interpretive opinion (Opinion) regarding compliance with the maximum interest rate limitations under Minnesota Statute § 47.20(4a)(a) (pertaining to conventional loans). The index formally being used in the statute, the “Federal National Mortgage Association posted yields on 30 year mortgage commitments for delivery within 60 days on standard conventional fixed rate mortgages”, has been retired. Per the Opinion, lenders may substitute the FNMA index with the Average Prime Offer Rate published by the Consumer Financial Protection Bureau on the last available business day of the second preceding month. The Opinion went into effect August 1, 2024.
Click to view the MN Interpretive Opinion Regarding Maximum Interest Rates: https://www.tenaco.com/wp-content/uploads/2024/08/MN-Interpretive-Opinion-Regarding-Maximum-Interest-Rates-08-01-24.pdf
