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).






     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




     (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.