Bill Text: MI SB0381 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Financial institutions; loan officers; registration of consumer financial services company mortgage loan officers; allow under secondary mortgage act. Amends sec. 1 of 1981 PA 125 (MCL 493.51). TIE BAR WITH: SB 0379'09, SB 0380'09
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Passed) 2009-04-21 - Assigned Pa 0014'09 With Immediate Effect [SB0381 Detail]
Download: Michigan-2009-SB0381-Engrossed.html
SB-0381, As Passed Senate, March 19, 2009
SUBSTITUTE FOR
SENATE BILL NO. 381
A bill to amend 1981 PA 125, entitled
"The secondary mortgage loan act,"
by amending section 1 (MCL 493.51), as amended by 2008 PA 325.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) This act shall be known and may be cited as "the
secondary mortgage loan act".
(2) As used in this act:
(a) "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
attempting to obtain a secondary mortgage loan.
(ii) Serves or offers to serve as an agent for a person who
makes or offers to make a secondary mortgage loan.
(b) "Commissioner" means the commissioner of the office of
financial and insurance regulation of the department of energy,
labor, and economic growth or his or her authorized
representatives.
(c) "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.
(d) "Depository financial institution" means a state or
nationally chartered bank, state or federal chartered savings and
loan association, savings bank, or credit union, or any other
institution whose deposits are insured by an agency of the federal
government.
(e) "Exclusive broker" means a person that brokers secondary
mortgage loans solely to 1 licensee or registrant, is compensated
solely by that licensee or registrant, and is indemnified by the
licensee or registrant as provided in section 6. The actions or
practices of an exclusive broker in brokering a secondary mortgage
loan are the actions or practices of the licensee or registrant.
(f) "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.
(g) "Financial licensing act" means any of the financial
licensing acts, as that term is defined in section 2 of the
consumer financial services act, 1988 PA 161, MCL 487.2052.
(h) "Lender" means a person who, directly or indirectly, makes
or offers to make secondary mortgage loans.
(i) "Licensee" means a person licensed or required to be
licensed under this act. As used in sections 2a, 2b, 2c, and 2d,
the term also includes a licensee under the consumer financial
services act, 1988 PA 161, MCL 487.2051 to 487.2072.
(j) "Loan servicing customer" means a mortgagor whose
secondary mortgage loan is being serviced by a servicer.
(k) "Open-end credit" means credit extended under a plan in
which both of the following apply:
(i) The licensee or registrant reasonably contemplates repeated
transactions.
(ii) The amount of credit that may be extended to the borrower
during the term of the plan is generally made available to the
extent that any part of the outstanding balance is repaid.
(l) "Originate" means any of the following:
(i) To negotiate, arrange, or offer to negotiate or arrange a
secondary mortgage loan between a lender and 1 or more individuals.
(ii) To place, assist in placing, or find a secondary mortgage
loan for 1 or more individuals.
(m) "Person" means an individual, corporation, limited
liability company, partnership, association, or other legal entity.
(n) "Registrant" means a person that is registered or required
to register as a broker, lender, or servicer under this act. The
term does not include a secondary mortgage loan officer registrant
or depository financial institution.
(o) "Secondary mortgage loan" means a loan that has a term of
90 days or more; that is made to a person for personal, family, or
household purposes; and that is secured by a mortgage on an
interest in real property that is used as a dwelling and is subject
to a lien of 1 or more outstanding mortgages. A secondary mortgage
loan may be secured by other collateral in addition to real
property. Notwithstanding the place of execution, nominal or real,
of a secondary mortgage loan, if the real property that secures the
loan is located in this state, a secondary mortgage loan is subject
to this act and all other applicable laws of this state.
(p) "Secondary mortgage loan officer" means an individual who
is an employee or agent of a broker, lender, or servicer; who
originates secondary 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.
(q) "Secondary mortgage loan officer registrant" means either
of the following:
(i) An individual who is currently registered under section 2a
or 2c.
(ii) An individual who is not required to register to perform
services of a secondary mortgage loan officer under section 2a(9).
(r) "Service" means the collection or remittance for a lender,
noteowner, or noteholder or a licensee's own account of 4 or more
installment payments of the principal of, interest of, or an amount
placed in escrow under a secondary mortgage loan, mortgage
servicing agreement, or an agreement with a mortgagor.
(s) "Servicer" means a person who, directly or indirectly,
services or offers to service secondary mortgage loans.
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. 380.
