Michigan Compiled Laws Act 125 Of 1981 The Secondary Mortgage Loan Act (493.51 - 493.81)

AN ACT to regulate secondary mortgage loans; to regulate secondary mortgage brokers, lenders, and servicers; to prescribe powers and duties of certain state agencies and officials; to require certain fees; to provide for the establishment of a revolving fund; to provide for the promulgation of rules; and to provide remedies and prescribe penalties.

History: 1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1988, Act 444, Imd. Eff. Dec. 27, 1988 ;-- Am. 1989, Act 66, Imd. Eff. June 16, 1989 ;-- Am. 1995, Act 164, Eff. Mar. 28, 1996 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997 ;-- Am. 2008, Act 325, Imd. Eff. Dec. 18, 2008 ;-- Am. 2009, Act 77, Eff. July 31, 2010
Popular Name: Secondary Mortgage Loan Act

Section 493.51 Short Title; Definitions.
(1) This act shall be known and may be cited as "the secondary mortgage loan act". (2) As used in this act: (a) "Broker"...
Section 493.52 Broker, Lender, Or Servicer; License Or Registration Required; Exemption; Use Of Name Or Assumed Name.
(1) A person shall not act as a broker, lender, or servicer without first obtaining a license under this act or registering under section...
Section 493.52a-493.52d Repealed. 2009, Act 77, Eff. July 31, 2010.
Compiler's Notes: The repealed sections pertained to performance of sevices as secondary mortgage loan officer; information available to public; remuneration; registration; conditions requiring notice.
Section 493.53 Application For License Or Registration; Form And Contents.
(1) An application for a license or registration under this act shall be in writing, under oath, and in the form prescribed by the...
Section 493.53a Broker, Lender, Or Servicer; Registration With Commissioner; Form.
The following persons shall register with the commissioner on a form prescribed by the commissioner: (a) A broker, lender, or servicer approved as a...
Section 493.54 Fees.
(1) At the time of making an application for a license, the applicant shall pay to the commissioner a fee for investigating the applicant...
Section 493.55 Investigation; Issuance Or Refusal To Issue License.
(1) Upon the filing of an application for a license and the payment of the required fees and the filing of proof of financial...
Section 493.56 License Or Registration; Filing Application Or Renewal; Bond Or Letter Of Credit; Claims Filed Against Proof Of Financial Responsibility; Maintenance Of Net Worth; Determination; Assets Excluded From Computation.
(1) Except as otherwise provided in this section, at the time of filing an application for a license or registration or renewal of a...
Section 493.56a Registration Or License; Expiration; Renewal; Filing Financial Statement; Exemption; Fees; Failure To Submit Reports Or Fees; Disposition Of Money Received; "Mblsla Fund" Defined; Limitation On Fees; Annual Report; Additional Reports; False Statement As Felony.
(1) A registration or license, unless it is renewed, expires on December 31 of each year. A person may renew a registration or license...
Section 493.56b Powers Of Commissioner.
(1) The commissioner shall exercise general supervision and control over brokers, lenders, and servicers doing business in this state. (2) In addition to the...
Section 493.57 Repealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.
Compiler's Notes: The repealed section pertained to duties of commissioner upon refusal to issue license.Popular Name: Secondary Mortgage Loan Act
Section 493.58 Summary Suspension Of License Or Registration; Order; Affidavit; Service; Filing Request For Hearing; Duration Of License Suspension; Record.
(1) The commissioner may issue an order summarily suspending a license or registration under section 92 of the administrative procedures act of 1969, 1969...
Section 493.59 Order In Addition To Other Legal Actions.
A summary suspension order, cease and desist order, or injunctive relief issued or granted in relation to a license or registration shall be in...
Section 493.60 Complaint; Forwarding To Licensee Or Registrant; Response; Investigation Or Administrative Action.
(1) Any person may file a complaint with the commissioner alleging that a licensee or registrant has violated this act or a rule promulgated...
Section 493.61 Suspension, Revocation, Or Refusal To Issue Or Renew License Or Registration; Notice; Hearing; Findings; Facts Or Conditions; Surrender Of License Or Registration; Preexisting Contract Not Affected; Lost Or Destroyed License Or Registration Certificate.
(1) The commissioner shall give notice to a licensee, registrant, or applicant of the commissioner's intention to enter an order to suspend or revoke...
Section 493.62 Contracts Or Commitments Made Prior To Suspension Or Revocation.
(1) This act does not prevent a person whose license or registration has been suspended or revoked from continuing to service secondary mortgage loans...
Section 493.62a Conservator; Appointment; Reimbursement Of Expenses; Powers; Termination; Disposition Of Compensation And Expenses; Disbursement Of Funds And Interest.
(1) Notwithstanding section 12, if the commissioner determines that a licensee or registrant is, intentionally or as a result of gross or wanton negligence,...
Section 493.63 Duration Of License Or Registration; Reinstatement Of Suspended License Or Registration; Issuing New License Or Registration; Consent Required For Transfer Or Assignment; Requirements For Transfer.
(1) A license or registration remains in force until the date of expiration or until surrendered, revoked, or suspended under this act. The commissioner...
Section 493.64 Order To Cease And Desist; Issuance; Conditions; Notice; Hearing; Failure To Appear As Consent; Service Or Order; Effective Date And Enforcement.
(1) If in the opinion of the commissioner a licensee or registrant is, has, or is about to engage in a practice that poses...
Section 493.64a Fraud.
(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 493.64b Hearing; Final Decision; Judicial Review; Stay Of Commissioner's Order.
(1) A hearing under section 14 or 14a shall be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to...
Section 493.64c 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 8, 14, or...
Section 493.64d Violation As Misdemeanor; Penalty.
Any current or former executive officer, director, agent, or control person who violates a final order issued under section 14a is guilty of a...
Section 493.64e Violation Of Order; Exceptions.
A control person who is subject to an order issued under section 14a and who meets all of the following requirements is not in...
Section 493.65 Subpoena Of Witnesses And Evidence; Oaths And Affirmations; Certain Conduct As Misdemeanor.
(1) The commissioner may subpoena witnesses and documents, papers, books, records, and other evidence, in any matter over which the commissioner has jurisdiction, control,...
Section 493.66 Failure To Testify Or Comply With Subpoena; Court Order; Contempt.
If a person fails to comply with a subpoena issued by the commissioner or to testify with respect to any matter concerning which the...
Section 493.67 Maintaining Records Relating To Conduct Of Business; Availability; Statement Of Borrower's Account; Ledger History; Obligation Of Servicer; Fee Prohibited.
(1) A licensee or registrant shall maintain books, accounts, records, and documents of the business, as prescribed by the commissioner to enable the commissioner...
Section 493.68 Documents; Preservation; Other Books, Accounts, Records, And Documents.
(1) A licensee or registrant shall preserve and keep available for examination by the commissioner each secondary mortgage loan document in its possession or...
Section 493.69 Repealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.
Compiler's Notes: The repealed section pertained to rules prescribing minimum information required to be shown in books, accounts, and records.Popular Name: Secondary Mortgage Loan Act
Section 493.70 Making Or Offering To Make Secondary Mortgage Loan; Terms And Conditions.
A licensee or registrant shall not make or offer to make a secondary mortgage loan except on the terms and conditions authorized by this...
Section 493.71 Interest Rate; Limitation; Computation; Prepaid Finance Charge Or Fee.
(1) A licensee or registrant may charge, contract for, receive, or collect on a secondary mortgage loan an interest rate not exceeding the interest...
Section 493.72 Charges And Fees Includable In Principal; Interest Authorized By Law; Sale Of Insurance; Hazard Insurance; Charges Permitted By Federal Lending Program.
(1) A licensee or registrant shall not directly or indirectly assess any charges or fees in connection with making a secondary mortgage loan, except...
Section 493.73 Instrument Evidencing Or Securing Secondary Mortgage; Contents.
An instrument evidencing or securing a secondary mortgage loan shall not contain any of the following: (a) A power of attorney to confess judgment....
Section 493.74 Licensee Or Registrant; Prohibited Conduct.
(1) A licensee or registrant shall not transfer or assign a secondary mortgage loan or a security directly representing an interest in 1 or...
Section 493.75 Violation Of Consumer Credit Protection Act As Violation Of Act.
A violation of the consumer credit protection act, Public Law 90-321, 82 Stat. 146, as amended by title VI of Public Law 96-221, 94...
Section 493.76 Advertising; Prohibited Conduct.
(1) A licensee or registrant shall not, willfully or knowingly, make a false, misleading, or deceptive advertisement regarding secondary mortgage loans or the availability...
Section 493.76a Repealed. 2009. Act 77, Eff. July 31, 2010.
Compiler's Notes: The repealed section pertained to registration or license requirements.
Section 493.77 Violation Of Act; Making Secondary Mortgage Loans Without License As Misdemeanor; Penalty; Civil Fine; Actions.
(1) In addition to the penalties provided by this act, a violation of this act with respect to a particular secondary mortgage loan transaction...
Section 493.78 Rules.
The commissioner shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to administer and enforce this...
Section 493.79 Construction Of Act; Applicability.
This act does not apply to a depository financial institution that is subject to other laws of this state, another state, or of the...
Section 493.79a Applicability Of Act To Nonprofit Corporation.
(1) This act does not apply to a nonprofit corporation that makes, brokers, or services mortgage loans in connection with a neighborhood housing program...
Section 493.80 Persons Permitted To Make Secondary Mortgage Loans.
(1) Except as otherwise provided by this act, a secondary mortgage loan may be made in compliance with this act, and only in conformance...
Section 493.81 Powers And Duties Of Attorney General.
The powers and duties of the attorney general provided in this act are in addition to his existing powers and duties provided by statutes...

Last modified: October 10, 2016