March 17, 2009, Introduced by Reps. Valentine, 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 10 and 11 (MCL 445.1640 and 445.1641).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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.
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 under subsection (2).
(2) In addition to any other remedies or penalties imposed by
this act, a creditor, a member, officer, director, or employee of a
creditor, or any other person that violates this act or an order
made or rule promulgated under this act, or directly or indirectly
counsels, aids, or abets in a violation, is responsible for a civil
fine of not more than $3,000.00 for each violation, except that a
person shall not be fined more than $30,000.00 for a transaction
resulting in more than 1 violation, plus the costs of
(1) A person is not liable for a violation under section
10 if the person shows that the violation was an unintentional
and bona fide error notwithstanding the maintenance of
procedures reasonably adopted to avoid the error. Examples of a bona
fide error include clerical, calculation, computer malfunction,
programming, or printing errors. An error in legal judgment
with respect to a person's obligations under this act is not
a bona fide error. (2)
A person is not liable for a violation under section 10 if,
within 60 days after discovery of the violation and before the institution
of an action under section 10, the person notifies the borrower
or buyer of the violation and corrects the violation in a manner
that, to the extent it is reasonably possible to do so, restores
the borrower or buyer to the position in which the borrower
or buyer would have been if the violation had not occurred. (3)
The person alleged to have violated this act has the burden
of proving that he or she is not liable as provided under this
section. A creditor, a
member, officer, director, or employee
of a creditor, or any other person that knowingly violates this act
or an order made or rule promulgated under this act is guilty of a
misdemeanor punishable by a fine of not more than $15,000.00,
imprisonment for not more than 1 year, or both.
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.
(b) Senate Bill No.____ or House Bill No. 4587(request no.
(c) Senate Bill No.____ or House Bill No. 4585(request no.
(d) Senate Bill No.____ or House Bill No. 4586(request no.
(e) Senate Bill No.____ or House Bill No. 4593(request no.
(f) Senate Bill No.____ or House Bill No. 4590(request no.
(g) Senate Bill No.____ or House Bill No. 4591(request no.
(h) Senate Bill No.____ or House Bill No. 4588(request no.