MORTGAGE BROKER REGISTRATION H.B. 4596 (S-1): FLOOR ANALYSIS


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House Bill 4596 (Substitute S-1 as reported by the Committee of the Whole)
Sponsor: Representative Shanelle Jackson
House Committee: Banking and Financial Services
Senate Committee: Banking and Financial Institutions

CONTENT
The bill would amend the Mortgage Brokers, Lenders, and Servicers Licensing Act to:

-- Change the licensure or registration period to a calendar-year basis, instead of July 1 through June 30.
-- Require a loan officer registrant to pay an annual fee established by the Commissioner of the Office of Financial and Insurance Services, and require the fee to be sufficient to defray the estimated cost of administering and enforcing the Act's loan officer registration provisions.
-- Change the minimum fee for amending or reissuing a license or registration from $50 to $15, retain the $200 maximum, and extend the fee to loan officer registration.
-- Require the Department of Treasury to establish and administer the "MBLSLA Fund" as a restricted account in the General Fund.


The Department would have to credit to the MBLSLA Fund all fees collected under the Act or under the Commissioner's authority under the Act and money appropriated or received from any source. The Department could use funds in the account only to provide money to the Commissioner to administer and enforce the Act and for other costs associated with his or her regulatory obligations. Money in the account could not revert to the General Fund at the end of the fiscal year, but would be carried over in the account.


The bill would take effect on January 1, 2009.


MCL 445.1656 et al. Legislative Analyst: Craig Laurie

FISCAL IMPACT
The bill would permit a change in the payment schedule for annual fees paid by mortgage brokers, lenders, and servicers to the Office of Financial and Insurance Services (which the bill would refer to as the Office of Financial and Insurance Regulation, consistent with Executive Order 2008-2). This would change the timing of the fee revenue; however, staff from the Department of Labor and Economic Growth indicate that there is a sufficient balance in the Consumer Finance Fee Fund to allow the change in renewal periods.


The bill also would widen the range of fees that could be considered by the Commissioner for amending or reissuing a license, registration, or loan officer registration.


Date Completed: 2-27-08 Fiscal Analyst: Elizabeth Pratt Maria Tyszkiewicz

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4596/0708