HOUSE BILL No. 4052

 

January 22, 2009, Introduced by Rep. Bettie Scott 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:

 

TITLE

 

     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

 

agencies and officials; 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

 

following:

 

     (a) Award grants to finance financial literacy programs,

 

homeownership training, and homeownership protection training.

 

     (b) Provide down payment assistance to individuals seeking

 

home loans.

 

     (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.