HOUSE BILL No. 4588

 

March 17, 2009, Introduced by Reps. Leland, Simpson, Slavens, Liss and Barnett and referred to the Committee on Banking and Financial Services.

 

     A bill to amend 2002 PA 660, entitled

 

"Consumer mortgage protection act,"

 

by amending sections 14 and 15 (MCL 445.1644 and 445.1645).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14. (1) The federal government and state solely regulate

 

the business of brokering, making, servicing, and collecting

 

mortgage home loans in this state and the manner in which any such

 

that business is conducted.

 

     (2) Any charter, ordinance, resolution, regulation, rule, or

 

other action by a municipal corporation or other political

 

subdivision of this state to regulate, directly or indirectly, the

 

brokering, making, servicing, or collecting of mortgage home loans

 

constitutes a statutory conflict with the uniform operation

 

throughout the state of residential mortgage lending and is

 


preempted.

 

     (3) Any charter, ordinance, resolution, regulation, rule, or

 

other action by a municipal corporation or other political

 

subdivision of this state to collect information about, require

 

reporting of, pledges regarding, notices, or certifications

 

concerning home loans, lenders creditors, applicants, deposits, or

 

credit experiences, character, and criminal background checks of

 

employees, agents, customers, or other persons is preempted by this

 

act.

 

     (4) Any charter, ordinance, resolution, regulation, rule, or

 

other action by a municipal corporation or other political

 

subdivision of this state that attempts to regulate the brokering,

 

making, servicing, or collecting of mortgage home loans constitutes

 

a statutory conflict and is preempted, including, without

 

limitation, if the ordinance, resolution, regulation, or other

 

action does either of the following:

 

     (a) Disqualifies a person, or its subsidiaries or affiliates,

 

from doing business with the municipal corporation or other

 

political subdivision based upon the acts or practices of the

 

person or its subsidiaries or affiliates in brokering, making,

 

servicing, or collecting mortgage home loans.

 

     (b) Imposes reporting requirements or other obligations upon a

 

person, or its subsidiaries or affiliates, based upon the person's,

 

or its subsidiaries' or affiliates', acts or practices in

 

brokering, making, servicing, or collecting mortgage home loans.

 

     (5) If any provision of this section, or any application of

 

any provision of this section, is for any reason held to be illegal

 


or invalid, the illegality or invalidity shall not affect any legal

 

and valid provision or application of this section, and the

 

provisions and applications of this section shall be severable.

 

     Sec. 15. (1) The laws of this state relating to the brokering,

 

making, servicing, and collecting of mortgage home loans prescribe

 

rules of conduct upon citizens generally, comprise a comprehensive

 

regulatory framework intended to operate uniformly throughout the

 

state under the same circumstances and conditions, and constitute

 

general laws of this state.

 

     (2) Silence in the statutes of this state with respect to any

 

act or practice in the brokering, making, servicing, or collecting

 

of mortgage home loans shall not be interpreted to mean that the

 

state has not completely occupied the field or has only set minimum

 

standards in its regulation of brokering, making, servicing, or

 

collecting of mortgage home loans.

 

     (3) It is the intent of the legislature to entirely preempt

 

municipal corporations and other political subdivisions from the

 

regulation and licensing of persons engaged in the brokering,

 

making, servicing, or collecting of mortgage home loans in this

 

state.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 4592(request no.

 

01098'09).

 

     (b) Senate Bill No.____ or House Bill No. 4587(request no.

 

01099'09).

 


     (c) Senate Bill No.____ or House Bill No. 4585(request no.

 

01100'09).

 

     (d) Senate Bill No.____ or House Bill No. 4586(request no.

 

01101'09).

 

     (e) Senate Bill No.____ or House Bill No. 4593(request no.

 

01103'09).

 

     (f) Senate Bill No.____ or House Bill No. 4590(request no.

 

01104'09).

 

     (g) Senate Bill No.____ or House Bill No. 4589(request no.

 

01105'09).

 

     (h) Senate Bill No.____ or House Bill No. 4591(request no.

 

01106'09).