October 11, 2007, Introduced by Reps. Coulouris, Young, Kathleen Law, Hopgood, Brown, Valentine, Hammel, Robert Jones, Vagnozzi, Mayes, Gonzales, Donigan, Dean and Tobocman and referred to the Committee on Banking and Financial Services.
A bill to amend 1987 PA 173, entitled
"Mortgage brokers, lenders, and servicers licensing act,"
(MCL 445.1651 to 445.1684) by adding section 2a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2a. (1) An employee of a licensee or registrant shall not
perform services of a loan officer unless he or she registers or
otherwise complies with this section.
(2) If an individual is employed as a loan officer by a
mortgage broker, mortgage lender, or mortgage servicer, that
individual shall apply for loan officer registration under this
section within 90 days after he or she begins providing services as
an employee of the mortgage broker, mortgage lender, or mortgage
servicer, by submitting the application described in subsection
(3), in writing, and including with the application the annual
operating fee established under section 8(3).
(3) The commissioner shall prescribe the form of application
for registration as a loan officer. Subject to subsection (8), the
application form shall require that an applicant provide at least
all of the following to the commissioner:
(a) The name and home address of the applicant.
(b) A statement as to whether the applicant has ever been
convicted of, or pled no contest to, any felony involving
embezzlement, forgery, fraud, a financial transaction, or
securities.
(c) A statement as to whether the applicant has had an
application denied, or a license, registration, or similar
authority revoked or suspended, to practice any profession or
occupation in any jurisdiction, including, but not limited to,
licensure or registration as a mortgage broker, mortgage lender, or
mortgage servicer in which the applicant held more than 25% of the
ownership interest or as a loan officer.
(d) Except for an application described in subsection (4),
proof in the form of a certificate of completion or other evidence
acceptable to the commissioner that the applicant has completed at
least 24 hours of live professional classroom instruction in this
state in an introductory course in residential mortgage lending
that is sponsored or provided by a person, and taught by an
instructor, approved by the commissioner. The 24 hours of
instruction shall include at least 3 hours of live classroom
instruction concerning state and federal laws and regulations
governing residential mortgage lending, the content of which has
been approved by the commissioner.
(e) Evidence acceptable to the commissioner that the applicant
correctly answered at least 75% of the questions on an examination
approved by the commissioner that tests an applicant’s knowledge of
the contents of the introductory course in residential mortgage
lending described in subdivision (d).
(f) The results of a criminal records check of the applicant
conducted by the employer, that includes a check of the applicant's
fingerprints, taken by a law enforcement agency or any other person
determined by the department to be qualified to take fingerprints.
(g) Any other information required by the commissioner.
(4) An applicant for loan officer registration may perform
services as a loan officer while his or her application is pending
if all of the following are met:
(a) The applicant has submitted his or her fingerprints to his
or her employer for purposes of the criminal records check
described in subsection (3)(f).
(b) The employer of the applicant has submitted the request
for the criminal records check of the applicant described in
subsection (3)(f) to the law enforcement agency or person that is
conducting that records check of the applicant on behalf of the
employer.
(c) If the employer receives the results of the criminal
records check submitted under subdivision (b) while the loan
officer registration application is pending, the criminal records
check does not disclose that the applicant has been convicted of,
or pled no contest to, any felony involving embezzlement, forgery,
fraud, a financial transaction, or securities.
(d) The employer of the applicant has provided the
commissioner with written notice that the applicant is beginning to
provide services as any employee to the employer.
(5) The commissioner shall not issue a registration to any of
the following:
(a) An applicant who has been convicted of, or pled no contest
to, any felony involving embezzlement, forgery, fraud, a financial
transaction, or securities.
(b) An applicant against whom the commissioner has issued a
prohibition order under section 18a.
(6) The commissioner must register a loan officer who meets
all of the following:
(a) For the 5-year period immediately preceding the effective
date of the amendatory act that added this section, he or she meets
any of the following:
(i) Was employed as a loan officer for at least 4-1/2 years by
1 or more licensees, registrants, or persons exempt from this act
under section 25.
(ii) Continuously owned at least a 25% interest in a licensee
or registrant.
(b) He or she was not the subject of any prohibition orders
issued by the commissioner under section 18a in the 5-year period
immediately preceding the effective date of the amendatory act that
added this section.
(c) Within 8 months after the effective date of the amendatory
act that added this section, he or she takes the examination
described in subsection (3)(e) and correctly answers at least 75%
of the questions on the examination.
(d) Within 8 months after the effective date of the amendatory
act that added this section, he or she submits an application under
subsection (3). However, the applicant is not required to complete
or submit proof of completion of the instruction described in
subsection (3)(d).
(7) An employee of a mortgage broker, mortgage lender, or
mortgage servicer that is exempt from licensing or registration
under this act may apply to be a loan officer registrant under this
section.
(8) The commissioner may waive any of the requirements of this
section for loan officer registration if the applicant has a valid,
similar license or registration from another state that has a
reciprocal agreement with the commissioner.
(9) The commissioner may disclose, provide, or make available
to the public the names, business addresses, and business telephone
numbers of loan officer registrants. The commissioner shall not
disclose, provide, or make available to the public any other
personal identifying information about loan officer registrants or
applicants for loan officer registration.
(10) An individual employed by a licensee as a loan officer
shall not use the title or designation "loan officer", "loan
originator", "mortgage loan officer", or "mortgage loan originator"
if he or she is not a loan officer registrant. A loan officer
registrant and the employer of a loan officer registrant shall not
use the word "registered", "certified", or any word of similar
import in his or her title or designation to identify him or her as
an individual who has met the registration requirements of this act
unless use of that word is approved by OFIS.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No.____ (request no.
03068'07).
(b) Senate Bill No.____ or House Bill No.____ (request no.
03157'07).
(c) Senate Bill No.____ or House Bill No.____ (request no.
05192'07).
(d) Senate Bill No.____ or House Bill No. 5289(request no.
05193'07).
(e) Senate Bill No.____ or House Bill No.____ (request no.
05194'07).
(f) Senate Bill No.____ or House Bill No.____ (request no.
05195'07).
(g) Senate Bill No.____ or House Bill No.____ (request no.
05196'07).
(h) Senate Bill No.____ or House Bill No. 5290(request no.
05197'07).
(i) Senate Bill No.____ or House Bill No. 5291(request no.
05198'07).
(j) Senate Bill No.____ or House Bill No.____ (request no.
05199'07).
(k) Senate Bill No.____ or House Bill No.____ (request no.
05200'07).