Michigan Compiled Laws Act 173 Of 1987 Mortgage Brokers, Lenders, And Servicers Licensing Act (445.1651 - 445.1684)

AN ACT to define and regulate mortgage brokers, mortgage lenders, and mortgage servicers; to prescribe the powers and duties of certain public officers and agencies; to provide for the promulgation of rules; and to provide remedies and penalties.

History: 1987, Act 173, Imd. Eff. Nov. 18, 1987 ;-- Am. 2008, Act 66, Imd. Eff. Apr. 3, 2008 ;-- Am. 2009, Act 76, Eff. July 31, 2010

Section 445.1651 Short Title.
This act shall be known and may be cited as the “mortgage brokers, lenders, and servicers licensing act”. History: 1987, Act 173, Imd. Eff....
Section 445.1651a Definitions.
As used in this act: (a) "Affiliate" means a person or group of persons that directly or indirectly through 1 or more intermediaries controls,...
Section 445.1652 Mortgage Broker, Mortgage Lender, Or Mortgage Servicer; License Or Registration Required; Exemption; Application; Compensation Or Other Remuneration; Words Contained In Name Or Assumed Name; "Employee" Defined.
(1) A person shall not act as a mortgage broker, mortgage lender, or mortgage servicer without first obtaining a license under this act or...
Section 445.1652a-445.1652c Repealed. 2009, Act 76, Eff. July 31, 2010.
Compiler's Notes: The repealed sections pertained to services performed by employee or agent of licensee or registrant; procedures for loan officer registration renewal; and, written...
Section 445.1653 License Or Renewal; Application; Form; Investigation; Determination; Issuance; Indemnification.
(1) An application for, or renewal of, a license shall be made in writing to the commissioner on a form prescribed by the commissioner....
Section 445.1654 Proof Of Financial Responsibility.
(1) Except as otherwise provided in this section, at the time of filing an application for a license or renewal of a license, the...
Section 445.1655 Minimum Net Worth.
A licensee who acts as a mortgage broker and who receives funds from a prospective borrower before the closing of the mortgage loan shall...
Section 445.1656 Registration Required; Applicability Of Certain Provisions; Licensing Or Registration Of Real Estate Broker Or Salesperson; Improper Use Of Business Name.
(1) The following shall register with the commissioner on a form prescribed by the commissioner: (a) A mortgage broker, mortgage lender, or mortgage servicer...
Section 445.1657 Expiration Of Registration Or License; Renewal; Application; Fee; Limitation; Financial Statement.
(1) A registration or license, unless it is renewed, shall expire December 31 of each year. A registration or license may be renewed by...
Section 445.1658 Payment For Investigation And Annual Operating Fees; Establishment Of Annual Fee Schedule; Limitation; Fees Nonrefundable; Action For Delinquent Payment; Licensee Or Registrant Report; Penalties; Establishment And Administration Of Mblsla Fund; Basis For Setting Operating Fee.
(1) At the time of making an initial application for a license under this act, and at the time of making the first application...
Section 445.1659 Transfer Or Assignment Of License Or Registration.
A license shall not be transferred or assigned without the consent of the commissioner. The sale, transfer, assignment, or conveyance of more than 25%...
Section 445.1660 Surrender, Revocation, Or Suspension Of License Or Registration; Loss Or Destruction; Affidavit.
(1) A licensee or registrant may surrender a license or registration by delivering to the commissioner the license or registration with written notice that...
Section 445.1661 Powers Of Commissioner Generally.
(1) The commissioner shall exercise general supervision and control over mortgage brokers, mortgage lenders, and mortgage servicers doing business in this state. (2) In...
Section 445.1662 Notice Of Intention To Enter Order Of License Or Registration, Suspension Or Revocation, Or Refusal To Issue License; Hearing; Final Order.
(1) The commissioner shall give notice to a licensee or registrant of intention to enter an order suspending or revoking that person's license or...
Section 445.1663 Complaint; Investigation; Federal Regulatory Authority.
(1) The attorney general, the commissioner, or any other person may file a complaint with the commissioner alleging that a person has violated this...
Section 445.1664 Provisions Applicable To Investigation.
All of the following shall apply to an investigation conducted under section 13: (a) The employees or agents of the office of financial and...
Section 445.1665 Summary Suspension Of License Or Registration; Order; Affidavit; Dissolution Of Summary Suspension Order; Record.
(1) After an investigation has been conducted pursuant to section 13, the commissioner may issue an order summarily suspending a license or registration pursuant...
Section 445.1666 Cease And Desist Order; Hearing; Violation; Injunction.
(1) After an investigation has been conducted pursuant to section 13, and prior to holding the hearing under section 18, the commissioner may order...
Section 445.1667 Remedies Cumulative.
A summary suspension order, cease and desist order, or injunctive relief issued or granted in relation to a license shall be in addition to...
Section 445.1668 Notice Of Hearing On Complaint; Service; Informal Conference; Settlement; Compliance; Hearing.
(1) After an investigation has been conducted and a formal complaint has been prepared pursuant to section 14(c), the commissioner shall serve upon the...
Section 445.1668a Fraud; Prohibition; Notice; Hearing; Order.
(1) If in the opinion of the commissioner a person has engaged in fraud, the commissioner may serve upon that person a written notice...
Section 445.1668b Hearing; Final Decision; Judicial Review; Effect Of Review On Order.
(1) A hearing under section 16 or 18a shall be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to...
Section 445.1668c Enforcement Of Order; Jurisdiction.
The commissioner may apply to the circuit court of Ingham county for the enforcement of any outstanding order issued under section 15, 16, or...
Section 445.1668d Violation As Misdemeanor; Penalty.
Any current or former executive officer, director, agent, or control person who violates a final order issued under section 18a is guilty of a...
Section 445.1668e Violation Of Order; Exceptions.
A control person who is subject to an order issued under section 18a and who meets all of the following requirements is not in...
Section 445.1669 Continuing To Service Mortgage Loan Or Making Mortgage After Suspension Or Revocation Of License Or Registration; Termination Of Commitment; Refund.
Nothing in this act shall preclude a person whose license or registration has been suspended or revoked, summarily or otherwise, from continuing to service...
Section 445.1670 Powers Of Commissioner In Conducting Examination Or Investigation; Conduct Of Person Subpoenaed As Misdemeanor; Conduct Of Investigation.
(1) In the conduct of any examination or investigation under this act, the commissioner may do any of the following: (a) Compel the attendance...
Section 445.1671 Books, Accounts, Records, And Documents; Preservation And Examination; Reports; False Statement As Felony; Penalty.
(1) A licensee or registrant shall maintain books, accounts, records, and documents of the business, as prescribed by the commissioner, conducted under the license...
Section 445.1672 Violations Generally.
It is a violation of this act for a licensee or registrant to do any of the following: (a) Fail to conduct the business...
Section 445.1672a Mortgage Loans; Prohibited Advertising.
(1) A licensee or registrant shall not, directly or indirectly, make a false, misleading, or deceptive advertisement regarding mortgage loans or the availability of...
Section 445.1672b Repealed. 2009, Act 76, Eff. July 31, 2010.
Compiler's Notes: The repealed section pertained to prohibited conduct of loan officer registrant.
Section 445.1673 Reasonable And Necessary Charges; Terms And Conditions Of Guarantee.
(1) A licensee or registrant may require a borrower to pay reasonable and necessary charges which are the actual expenses incurred by the licensee...
Section 445.1674 Annual Statement And Ledger History Of Borrower's Account; Fee Prohibited.
(1) A mortgage servicer shall deliver to the borrower annually a statement of the borrower's account showing the unpaid principal balance of the mortgage...
Section 445.1675 Applicability Of Act.
This act does not apply to any of the following: (a) A depository financial institution whether or not the depository financial institution is acting...
Section 445.1675a Exemptions; Filing Affidavit; Failure To Meet Qualifications.
(1) Except for the requirements of section 23, the commissioner may exempt from the requirements of this act a person the commissioner believes merits...
Section 445.1676 Laws To Which Mortgage Loan Subject.
Notwithstanding the place of execution, nominal or real, of a mortgage loan, if the real property is located in this state, the mortgage loan...
Section 445.1677 Period Within Which To File Application For License And Proof Of Financial Responsibility, To Pay Fees, Or To Register.
Any mortgage broker, mortgage lender, or mortgage servicer engaged in activities covered by this act on the effective date of this act shall have...
Section 445.1678 Civil Or Criminal Liability.
This act does not relieve a person from civil or criminal liability under other laws of this state or any federal law. History: 1987,...
Section 445.1679 Prohibited Conduct; Misdemeanor; Penalty; Violation Of Act Or Rules; Civil Fine; Suspension Or Revocation Of License Or Registration; Refusal To Issue Or Renew License Or Registration; Restitution; Proceedings Subject To Mcl 24.201 To 24.328; Bona Fide Error.
(1) An owner, partner, member, officer, director, trustee, employee, agent, broker, or other person, or a representative acting on the authority of that person...
Section 445.1680 Effect Of Noncompliance On Validity Or Enforceability Of Mortgage Loan.
Failure to comply with the provisions of this act shall not affect the validity or enforceability of any mortgage loan, unless the mortgage loan...
Section 445.1681 Action To Obtain Declaratory Judgment, Injunction, Or Actual Damages; Limitation.
(1) Whether or not a person seeks damages or has an adequate remedy at law, any person, prosecutor, or the attorney general may bring...
Section 445.1682 Conservatorship.
(1) Notwithstanding the provisions of section 19, if the commissioner determines that a licensee or registrant is, intentionally or as a result of gross...
Section 445.1683 Mortgage Industry Advisory Board; Creation; Requirements; Communication Of Issues To Commissioner; Recommendations.
(1) The mortgage industry advisory board is created. (2) All of the following apply to the board: (a) The board shall consist of 7...
Section 445.1684 Claims Filed Against Proof Of Financial Responsibility.
(1) The commissioner shall prioritize and pay claims against a proof of financial responsibility filed with the commissioner under section 4 in a manner...

Last modified: October 10, 2016