October 26, 2007, Introduced by Reps. Scott, Young, Johnson, Sheltrown, Sak, Kathleen Law, Gonzales, Lahti, Lindberg, Lemmons, Condino, Constan, Rick Jones, Farrah, Hood, Tobocman, Meadows, Polidori, Leland, Griffin, Espinoza, Hopgood, Jackson, Accavitti, Mayes, Wojno, Dean, Cushingberry, Gaffney and Cheeks and referred to the Committee on Banking and Financial Services.
A bill to amend 2002 PA 660, entitled
"Consumer mortgage protection act,"
by amending the title and section 10 (MCL 445.1640).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
An act to prohibit certain lending practices; to require
disclosure of certain information for home loans; to prescribe
certain duties and obligations of the lender in a home loan
transaction; to prescribe the powers and duties of certain state
and to prescribe penalties to create the
Michigan homeownership preservation fund and to provide for its
funding and use; to prescribe and provide for the disposition of
civil fines; and to provide for remedies.
Sec. 10. (1) The attorney general or the prosecuting attorney
for the county where an alleged violation occurred may bring an
action against a person to do 1 or more of the following:
(a) Obtain a declaratory judgment that a method, act, or
practice of the person is a violation of this act.
(b) Enjoin a person who is engaging or about to engage in a
method, act, or practice that is a violation of this act.
(c) Obtain a civil fine of not more than $10,000.00 for the
first offense and not more than $20,000.00 for the second and any
subsequent offense. Fines received under this subdivision shall be
deposited into the Michigan homeownership preservation fund created
in subsection (2).
(2) The Michigan homeownership preservation fund is created in
the state treasury. Fines assessed under subsection (1)(c) shall be
deposited in the fund and used by the commissioner to do any of the
(a) Award grants to finance financial literacy programs,
homeownership training, and homeownership protection training.
(b) Provide down payment assistance to individuals seeking
(c) Provide loans and grants to low income individuals seeking
to avoid foreclosure.
(3) The commissioner shall establish eligibility standards for
the award of grants under subsection (2).
(4) The state treasurer may receive money from any source for
deposit into the Michigan homeownership preservation fund created
in subsection (2). The state treasurer shall direct the investment
of the fund. The state treasurer shall credit to the fund interest
and earnings from fund investments. Money in the fund at the close
of a fiscal year shall remain in the fund and shall not lapse to
the general fund.