1.1    .................... moves to amend H. F. No. 931, the first engrossment, as follows:
1.2Page 1, delete sections 1 to 2
1.3Page 2, line 1, delete everything after "loan"" and insert "means, in the case of an
1.4adjustable rate loan secured by a first lien on a dwelling that can increase in interest rate but
1.5not decrease in interest rate below the fully indexed rate at the time of origination, a loan
1.6for which the annual percentage rate (APR) is greater than two percentage points above the
1.7yield on United States Treasury securities having comparable periods of maturity, as of the
1.815th day of the preceding month if the rate is set between the first and the 14th day of the
1.9month and as of the 15th day of the current month if the rate is set on or after the 15th day."
1.10Page 2, delete lines 2 and 3 and insert:
1.11    "For all other loans secured by a first lien on a dwelling, the term means a loan
1.12for which the APR is greater than three percentage points above the yield on United
1.13States Treasury securities having comparable periods of maturity, as of the 15th day of the
1.14preceding month if the rate is set between the first and the 14th day of the month and as of
1.15the 15th day of the current month if the rate is set on or after the 15th day.
1.16    For loans secured by a subordinate lien on a dwelling, the term means a loan for
1.17which the APR is greater than five percentage points above the yield on United States
1.18Treasury securities having comparable periods of maturity, as of the 15th day of the
1.19preceding month if the rate is set between the first and the 14th day of the month and as of
1.20the 15th day of the current month if the rate is set on or after the 15th day.
1.21    For purposes of this section, the annual percentage rate has the meaning given in
1.22Code of Federal Regulations, title 12, part 226."
1.23Page 4, line 20, delete everything after "from" and insert "an authorized independent
1.24loan counselor"
1.25Page 4, delete line 21
1.26Page 4, line 22, delete everything before "that"
1.27Page 4, line 23, delete everything after the period
2.1Page 4, line 24, delete everything before "For"
2.2Page 4, line 31, after the period, insert "For purposes of this section, "authorized
2.3independent loan counselor" means a nonprofit, third-party individual or organization
2.4providing homebuyer education programs, foreclosure prevention services, mortgage loan
2.5counseling certified by the United States Department of Housing and Urban Development,
2.6the Minnesota Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention
2.7Association, AARP, or NeighborWorks America."
2.8Page 7, delete section 7 and insert:

2.9    "Sec. 5. [58.19] RESIDENTIAL MORTGAGE FRAUD.
2.10    Subdivision 1. Residential mortgage fraud prohibited. Whoever does any of
2.11the following commits residential mortgage fraud and may be sentenced as provided in
2.12subdivision 2:
2.13    (1) knowingly makes or causes to be made any deliberate and material misstatement,
2.14misrepresentation, or omission during the mortgage lending process with the intention
2.15that it be relied on by a mortgage lender, borrower, or any other party to the mortgage
2.16lending process;
2.17    (2) knowingly uses or facilitates the use of any deliberate and material misstatement,
2.18misrepresentation, or omission, knowing the same to contain a material misstatement,
2.19misrepresentation, or omission, during the mortgage lending process with the intention
2.20that it be relied on by a mortgage lender, borrower, or any other party to the mortgage
2.21lending process;
2.22    (3) knowingly facilitates, makes, or causes to be made a residential mortgage loan
2.23with the knowledge that, at the time the loan is originated, the borrower lacks the capacity
2.24to repay principal, interest, insurance, and property taxes; or
2.25    (4) conspires to violate any of the provisions of clause (1), (2), or (3).
2.26    An offense of residential mortgage fraud must not be predicated solely upon
2.27information lawfully disclosed under federal disclosure laws, regulations, and
2.28interpretations related to the mortgage lending process.
2.29    Subd. 2. Sentence. Whoever violates this section shall be sentenced as provided
2.30in section 609.52, subdivision 3, based on the greater of (1) the value of the property,
2.31services, or other benefit wrongfully obtained or attempted to obtain; or (2) the aggregate
2.32economic loss suffered by any person as a result of the violation. Prosecution or conviction
2.33for violation of this section shall not bar prosecution or conviction for any other offense.
2.34    Subd. 3. Additional penalty for crime against a disabled or elderly person.
2.35    Any person who commits residential mortgage fraud against a senior citizen or disabled
3.1person may be fined an additional $50,000 or imprisoned for up to two additional years, or
3.2both. For purposes of this subdivision, "senior citizen" and "disabled person" have the
3.3meanings given those terms in section 609.2336, subdivision 1.
3.4    Subd. 4. Definitions. For purposes of this section:
3.5    (1) "mortgage lending process" means the process through which a person seeks or
3.6obtains a residential mortgage loan including, but not limited to, solicitation, application,
3.7or origination, negotiation of terms, third-party provider services, underwriting, signing
3.8and closing, and funding of the loan. Documents involved in the mortgage lending
3.9process include, but are not limited to, uniform residential loan applications or other
3.10loan applications; appraisal reports; HUD-1 settlement statements; supporting personal
3.11documentation for loan applications such as W-2 forms, verifications of income and
3.12employment, bank statements, tax returns, and payroll subs; and any required disclosures;
3.13and
3.14    (2) "residential mortgage loan" has the meaning set forth in section 58.02,
3.15subdivision 18."
3.16Renumber the sections in sequence and correct the internal references
3.17Amend the title accordingly