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Act 125 of 1981
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THE SECONDARY MORTGAGE LOAN ACT

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:

DocumentTypeDescription
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.