Bill Text: MI SB0380 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Financial institutions; loan officers; registration of consumer financial services company mortgage loan officers; allow under mortgage brokers, lenders, and servicers licensing act. Amends sec. 1a of 1987 PA 173 (MCL 445.1651a). TIE BAR WITH: SB 0379'09, SB 0381'09
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2009-04-21 - Assigned Pa 0013'09 With Immediate Effect [SB0380 Detail]
Download: Michigan-2009-SB0380-Engrossed.html
SB-0380, As Passed House, March 31, 2009
SUBSTITUTE FOR
SENATE BILL NO. 380
A bill to amend 1987 PA 173, entitled
"Mortgage brokers, lenders, and servicers licensing act,"
by amending section 1a (MCL 445.1651a), as amended by 2008 PA 66.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1a. As used in this act:
(a) "Affiliate" means a person or group of persons that
directly or indirectly through 1 or more intermediaries controls,
is controlled by, or is under common control with another person
and engaged in a business or transaction regulated by this act.
(b) "Board" means the mortgage industry advisory board created
in section 33.
(c) "Commissioner" means the commissioner of the office of
financial
and insurance services regulation
of the department of
energy, labor, and economic growth or his or her authorized agent.
(d) "Construction loan" means a mortgage loan to construct a
1-to-4 family dwelling, that is approved and closed before
completion of the construction of the improvement on the real
property.
(e) "Control person" means a director or executive officer of
a licensee or registrant or a person who has the authority to
participate in the direction, directly or indirectly through 1 or
more other persons, of the management or policies of a licensee or
registrant.
(f) "Depository financial institution" means a state or
nationally chartered bank, a state or federally chartered savings
and loan association, savings bank, or credit union, or an entity
of the federally chartered farm credit system.
(g) "Executive officer" means an officer, member, or partner
of a licensee or registrant. The term includes the chief executive
officer, president, vice president, chief financial officer,
controller, or compliance officer or an individual holding any
other similar position.
(h) "Financial licensing act" means the consumer financial
services act, 1988 PA 161, MCL 487.2051 to 487.2072, and any of the
acts listed in section 2 of the consumer financial services act,
1988 PA 161, MCL 487.2052.
(i) "Firm commitment" means an underwriting in which a broker-
dealer commits to buy the mortgage loan or the entire issue of
securities based upon or backed by 1 or more mortgage loans and
assumes all financial responsibility for any unsold securities.
(j) "Individual investor" means a person that resides in this
state or has its principal place of business in this state. The
term does not include a bank, savings bank, savings and loan
association, credit union, trust company, insurance company,
investment company as defined in the investment company act of
1940, 15 USC 80a-1 to 80a-64, pension or profit sharing plan if the
assets of the plan are managed by a bank or trust company or other
institutional manager, financial institution, institutional
manager, broker-dealer that is a member of the New York stock
exchange or registered under the uniform securities act, 1964 PA
265, MCL 451.501 to 451.818, or the uniform securities act (2002),
2008 PA 551, MCL 451.2101 to 451.2703, the federal national
mortgage association, the government national mortgage association,
the federal home loan mortgage corporation, or a mortgage lender or
mortgage servicer.
(k) "License" means a license issued under this act.
(l) "Licensee" means a person licensed or required to be
licensed under this act. As used in sections 2a, 2b, and 2c, the
term also includes a licensee under the consumer financial services
act, 1988 PA 161, MCL 487.2051 to 487.2072.
(m) "Loan officer" means an individual who is an employee or
agent of a mortgage broker, mortgage lender, or mortgage servicer;
who originates mortgage loans; and who is not an employee or agent
of a depository financial institution or a subsidiary or affiliate
of a depository financial institution.
(n) "Loan officer registrant" means an individual who is
currently registered under section 2a.
(o) "Mortgage broker" means a person who, directly or
indirectly, does 1 or both of the following:
(i) Serves or offers to serve as an agent for a person in an
attempt to obtain a mortgage loan.
(ii) Serves or offers to serve as an agent for a person who
makes or offers to make mortgage loans.
(p) "Mortgage lender" means a person who, directly or
indirectly, makes or offers to make mortgage loans.
(q) "Mortgage loan" means a loan secured by a first mortgage
on real property located in this state and used, or improved for
use, as a dwelling and designed for occupancy by 4 or fewer
families or a land contract covering real property located in this
state used, or improved for use, as a dwelling and designed for
occupancy by 4 or fewer families. A mortgage loan does not include
a home improvement installment contract under the home improvement
finance act, 1965 PA 332, MCL 445.1101 to 445.1431.
(r) "Mortgage servicer" means a person who, directly or
indirectly, services or offers to service mortgage loans.
(s) "Originate" means any of the following:
(i) To negotiate, arrange, or offer to negotiate or arrange a
mortgage loan between a mortgage lender and 1 or more individuals.
(ii) To place, assist in placing, or find a mortgage loan for 1
or more individuals.
(t) "Person" means an individual, corporation, limited
liability company, partnership, association, governmental entity,
or any other legal entity.
(u) "Real estate broker" means a broker or associate broker
licensed under article 25 of the occupational code, 1980 PA 299,
MCL 339.2501 to 339.2518.
(v) "Real estate salesperson" means a salesperson licensed
under article 25 of the occupational code, 1980 PA 299, MCL
339.2501 to 339.2518.
(w) "Register" means filing a notice with the commissioner on
a form prescribed by the commissioner that notifies the
commissioner of the intent to engage in the activities of a
mortgage broker, mortgage lender, mortgage servicer, or loan
officer in this state and the payment of any fees required under
this act, along with the other documents, proofs, and fees required
by the commissioner.
(x) "Registrant" means a person that is registered under
section 6 or required to register under section 6. The term does
not include a loan officer registrant.
(y) "Service" means the collection or remittance, or the right
or obligation to collect or remit, for a lender, noteowner,
noteholder, mortgage servicer, or the licensee's or registrant's
own account of 4 or more installment payments of the principal,
interest, or an amount placed in escrow under a mortgage loan,
mortgage servicing agreement, or an agreement with the mortgagor.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No. 379.
(b) Senate Bill No. 381.
