March 16, 2005, Introduced by Senators STAMAS, GOSCHKA and BISHOP 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 an
individual who is performing
services as an employee or agent of only 1 mortgage broker,
mortgage lender, or mortgage servicer.
(b)
The person is exempted from the this 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.
(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 as a mortgage broker, mortgage lender, or
mortgage servicer under this act or is a mortgage broker, mortgage
lender, or mortgage servicer exempt from licensing or registration
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 as a mortgage broker, mortgage lender, or
mortgage servicer under this act or is a mortgage broker, mortgage
lender, or mortgage servicer exempt from licensing or registration
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 is 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 a 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.