Effective July 1, 2019, among other things, the definition of “subprime loan” set forth in Subdivision 27 of Section 58.02 of the Residential Mortgage Originator and Servicer Licensing Act is repealed.

However, the existing prohibition on a residential mortgage originator entering into a “subprime loan” containing a provision requiring or permitting a penalty, fee, premium, or other charge upon whole or partial prepayment (Section 58.137, subdivision 2, subsection (c)) is effectively retained, as the amendment incorporates the former definition of “subprime loan” into the text of the prohibition. That prohibition does not apply to any loan with a principal amount (or in the case of an open-end credit plan, in which the borrower’s initial maximum credit limit) exceeds the conforming loan size limit for a single-family dwelling as established by the Federal Housing Finance Administration or its successor.