Bill Text: MI HB5899 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Financial institutions; mortgage brokers and lenders; requiring a mortgage escrow account for property taxes; prohibit for mortgage of certain exempt property owned by disabled veterans. Amends sec. 22 of 1987 PA 173 (MCL 445.1672).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-11-12 - Printed Bill Filed 11/07/2014 [HB5899 Detail]
Download: Michigan-2013-HB5899-Introduced.html
HOUSE BILL No. 5899
November 6, 2014, Introduced by Rep. Shirkey and referred to the Committee on Financial Services.
A bill to amend 1987 PA 173, entitled
"Mortgage brokers, lenders, and servicers licensing act,"
by amending section 22 (MCL 445.1672), as amended by 2002 PA 391.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22. (1) It is a violation of this act for a licensee or
registrant to do any of the following:
(a) Fail to conduct the business in accordance with law, this
act, or a rule promulgated or order issued under this act.
(b) Engage in fraud, deceit, or material misrepresentation in
connection with any transaction governed by this act.
(c) Intentionally or due to gross or wanton negligence,
repeatedly fail to provide borrowers material disclosures of
information as required by law.
(d)
Suppress or withhold from the commissioner director any
information that the licensee or registrant possesses and that, if
submitted, would have made the licensee or registrant ineligible
for licensing or registration under this act or would have
warranted
the commissioner's director's
denial of a license
application or refusal to accept a registration.
(e) Fail to comply with 1966 PA 125, MCL 565.161 to 565.164,
regulating the handling of mortgage escrow accounts by mortgagees.
(f) Until proper disbursement is made, fail to place in a
trust or escrow account held by a federally insured depository
financial
institution in a manner approved by the commissioner
director any money, funds, deposits, checks, drafts, or other
negotiable instruments received by the licensee that the borrower
is obligated to pay to a third party, including amounts paid to the
holder of the mortgage loan, amounts for property taxes and
insurance premiums, or amounts paid under an agreement that
requires if the mortgage loan is not closed the amounts paid shall
be refunded to the prospective borrower or if the mortgage loan is
closed the amounts paid shall be applied to fees and costs incurred
at the time the mortgage loan is closed. Fees and costs include,
but are not limited to, title insurance premiums and recording
fees. Fees and costs do not include amounts paid to cover costs
incurred to process the mortgage loan application, to obtain an
appraisal, or to receive a credit report.
(g) Refuse to permit an examination or investigation by the
commissioner
director of the books and affairs of the licensee or
registrant, or has refused or failed, within a reasonable time, to
furnish
any information or make any report that may be is required
by
the commissioner director under this act.
(h) To be convicted of a felony, or any misdemeanor of which
an essential element is fraud.
(i) Refuse or fail to pay, within a reasonable time, those
expenses assessed to the licensee or registrant under this act.
(j) Fail to make restitution after having been ordered to do
so
by the commissioner director
or an administrative agency, or
fail to make restitution or pay damages to persons injured by the
licensee's or registrant's business transactions after having been
ordered to do so by a court.
(k) Fail to make a mortgage loan in accordance with a written
commitment to make a mortgage loan issued to, and accepted by, a
person when the person has timely and completely satisfied all the
conditions of the commitment before the expiration of the
commitment.
(l) Require a prospective borrower to deal exclusively with the
licensee or registrant in regard to a mortgage loan application.
(m) Take a security interest in real property before closing
the mortgage loan to secure payment of fees assessed in connection
with a mortgage loan application.
(n) Except as provided under section 18e, knowingly permit a
person to violate an order that has been issued under this act or
any other financial licensing act that prohibits that person from
being employed by, an agent of, or a control person of the licensee
or registrant.
(o) Unless an escrow account is required by law, establish an
escrow account for the payment of real property taxes, or require
that a mortgagor make payments to a mortgage escrow account for the
payment of real property taxes, if the mortgagor is a disabled
veteran as defined in section 7b of the general property tax act,
1893 PA 206, MCL 211.7b, and the real property securing the
mortgage loan is exempt from taxation under section 7b of the
general property tax act, 1893 PA 206, MCL 211.7b.
(2) As used in this section, "director" means the director of
the department of insurance and financial services.