May 26, 2005, Introduced by Senators SANBORN, BISHOP, VAN WOERKOM, JACOBS and STAMAS and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1987 PA 173, entitled
"Mortgage brokers, lenders, and servicers licensing act,"
by amending section 2 (MCL 445.1652), as amended by 2002 PA 4.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. (1) A person shall not act as a mortgage broker,
mortgage lender, or mortgage servicer without first obtaining a
license or registering under this act, unless 1 or more of the
following apply:
(a) The person is solely performing services as an employee of
only 1 mortgage broker, mortgage lender, or mortgage servicer.
(b) The person is exempted from the act under section 25.
(c) The person is licensed as a class I licensee under the
consumer financial services act, 1988 PA 161, MCL 487.2051 to
487.2072.
(d) The person is an employee of a professional employer
organization, as that term is defined in section 4 of the single
business tax act, 1975 PA 228, MCL 208.4, solely performing
services as an agent of only 1 mortgage broker, mortgage lender, or
mortgage servicer. The mortgage broker, mortgage lender, or
mortgage servicer has the authority to direct and control the
activities of an individual performing services under this
subdivision and shall comply with any requirements of this act
applicable to that individual.
(2) A person that is licensed to make regulatory loans under
the
regulatory loan act, of 1963, 1939 PA 21, MCL 493.1 to 493.25
493.24, or is licensed to make secondary mortgage loans under the
secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, and
is registered with the commissioner shall file with the
commissioner an application for a license under section 3(1) or
shall discontinue all activities that are subject to this act.
(3) Unless a residential mortgage originator is otherwise
licensed or registered under this act, a residential mortgage
originator shall not receive directly or indirectly any
compensation, commission, fee, points, or other remuneration or
benefits from a mortgage broker, mortgage lender, or mortgage
servicer other than the employer of the residential mortgage
originator.
(4) Unless a residential mortgage originator is otherwise
licensed or registered under this act, a mortgage broker, mortgage
lender, or mortgage servicer shall not pay directly or indirectly
any compensation, commission, fee, points, or other remuneration or
benefits to a residential mortgage originator other than an
employee of the mortgage broker, mortgage lender, or mortgage
servicer. As used in this subsection and subsection (3),
"residential mortgage originator" means a person who assists
another person in obtaining a mortgage loan.
(5) A mortgage broker, mortgage lender, or mortgage servicer
that was exempt from regulation under this act and is a subsidiary
or affiliate of a depository financial institution or a depository
financial institution holding company that does not maintain a main
office or branch office in this state, shall register under section
6 or shall discontinue all activities subject to this act.
(6) Except for a state or nationally chartered bank, savings
bank, or an affiliate of a bank or savings bank, the person subject
to this act shall not include in its name or assumed name, the
words "bank", "banker", "banking", "banc", "bankcorp", "bancorp",
or any other words or phrases that would imply that the person is a
bank, is engaged in the business of banking, or is affiliated with
a bank or savings bank. It is not a violation of this subsection
for a licensee or registrant to use the term "mortgage banker" or
"mortgage banking" in its name or assumed name. A person subject to
this act whose name or assumed name on January 1, 1995 contained a
word prohibited by this section may continue to use the name or
assumed name.