capitol dome Michigan Compiled Laws Complete Through PA 130 of 2015

Michigan Legislature

Main Content

Act 125 of 1981
Search within this Statute for


Act 125 of 1981

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

© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

Section 493.51SectionShort title; definitions.
Section 493.52SectionBroker, lender, or servicer; license or registration required; exemption; use of name or assumed name.
Section 493.52a-493.52dSectionRepealed. 2009, Act 77, Eff. July 31, 2010.
Section 493.53SectionApplication for license or registration; form and contents.
Section 493.53aSectionBroker, lender, or servicer; registration with commissioner; form.
Section 493.54SectionFees.
Section 493.55SectionInvestigation; issuance or refusal to issue license.
Section 493.56SectionLicense 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.
Section 493.56aSectionRegistration 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.
Section 493.56bSectionPowers of commissioner.
Section 493.57SectionRepealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.
Section 493.58SectionSummary suspension of license or registration; order; affidavit; service; filing request for hearing; duration of license suspension; record.
Section 493.59SectionOrder in addition to other legal actions.
Section 493.60SectionComplaint; forwarding to licensee or registrant; response; investigation or administrative action.
Section 493.61SectionSuspension, 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.
Section 493.62SectionContracts or commitments made prior to suspension or revocation.
Section 493.62aSectionConservator; appointment; reimbursement of expenses; powers; termination; disposition of compensation and expenses; disbursement of funds and interest.
Section 493.63SectionDuration of license or registration; reinstatement of suspended license or registration; issuing new license or registration; consent required for transfer or assignment; requirements for transfer.
Section 493.64SectionOrder to cease and desist; issuance; conditions; notice; hearing; failure to appear as consent; service or order; effective date and enforcement.
Section 493.64aSectionFraud.
Section 493.64bSectionHearing; final decision; judicial review; stay of commissioner's order.
Section 493.64cSectionEnforcement of order; jurisdiction.
Section 493.64dSectionViolation as misdemeanor; penalty.
Section 493.64eSectionViolation of order; exceptions.
Section 493.65SectionSubpoena of witnesses and evidence; oaths and affirmations; certain conduct as misdemeanor.
Section 493.66SectionFailure to testify or comply with subpoena; court order; contempt.
Section 493.67SectionMaintaining records relating to conduct of business; availability; statement of borrower's account; ledger history; obligation of servicer; fee prohibited.
Section 493.68SectionDocuments; preservation; other books, accounts, records, and documents.
Section 493.69SectionRepealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.
Section 493.70SectionMaking or offering to make secondary mortgage loan; terms and conditions.
Section 493.71SectionInterest rate; limitation; computation; prepaid finance charge or fee.
Section 493.72SectionCharges and fees includable in principal; interest authorized by law; sale of insurance; hazard insurance; charges permitted by federal lending program.
Section 493.73SectionInstrument evidencing or securing secondary mortgage; contents.
Section 493.74SectionLicensee or registrant; prohibited conduct.
Section 493.75SectionViolation of consumer credit protection act as violation of act.
Section 493.76SectionAdvertising; prohibited conduct.
Section 493.76aSectionRepealed. 2009. Act 77, Eff. July 31, 2010.
Section 493.77SectionViolation of act; making secondary mortgage loans without license as misdemeanor; penalty; civil fine; actions.
Section 493.78SectionRules.
Section 493.79SectionConstruction of act; applicability.
Section 493.79aSectionApplicability of act to nonprofit corporation.
Section 493.80SectionPersons permitted to make secondary mortgage loans.
Section 493.81SectionPowers and duties of attorney general.