HOUSE BILL No. 5553


     December 21, 2001, Introduced by Reps. Bishop, Raczkowski and Kuipers and referred to the Committee on Commerce.


        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 1996 PA 210.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2.  (1) A person shall not act as a mortgage broker,

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      mortgage lender, or mortgage servicer without first obtaining a

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      license or registering under this act, unless 1 or more of the

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      following apply:

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           (a) The person is solely performing services as an employee

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      of only 1 mortgage broker, mortgage lender, or mortgage

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      servicer.

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           (b) The person is exempted from the act under section 25.

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           (c) The person is licensed as a class I licensee under the

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      consumer financial services act,  Act No. 161 of the Public Acts




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      of 1988, being sections 487.2051 to 487.2072 of the Michigan

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      Compiled Laws  1988 PA 161, MCL 487.2051 TO 487.2072.

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           (2)  No later than 90 days after the effective date of the

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      amendatory act that added this subsection, a  A person that is

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      licensed to make regulatory loans under the regulatory loan act

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      of 1963,  Act No. 21 of the Public Acts of 1939, being sections

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      493.1 to 493.26 of the Michigan Compiled Laws  1939 PA 21,

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      MCL 493.1 TO 493.25, or is licensed to make secondary mortgage

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      loans under  Act No. 125 of the Public Acts of 1981, being sec-

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      tions 493.51 to 493.81 of the Michigan Compiled Laws  THE SECOND-

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      ARY MORTGAGE LOAN ACT, 1981 PA 125, MCL 493.51 TO 493.81, and is

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      registered with the commissioner shall file with the commissioner

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      an application for a license under section 3(1) or shall discon-

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      tinue all activities  which  THAT are subject to this act.

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           (3) UNLESS A RESIDENTIAL MORTGAGE ORIGINATOR IS OTHERWISE

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      LICENSED OR REGISTERED UNDER THIS ACT, A RESIDENTIAL MORTGAGE

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      ORIGINATOR SHALL NOT RECEIVE DIRECTLY OR INDIRECTLY ANY COMPENSA-

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      TION, COMMISSION, FEE, POINTS, OR OTHER REMUNERATION OR BENEFITS

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      FROM A MORTGAGE BROKER, MORTGAGE LENDER, OR MORTGAGE SERVICER

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      OTHER THAN THE EMPLOYER OF THE RESIDENTIAL MORTGAGE ORIGINATOR.

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           (4) UNLESS A RESIDENTIAL MORTGAGE ORIGINATOR IS OTHERWISE

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      LICENSED OR REGISTERED UNDER THIS ACT, A MORTGAGE BROKER, MORT-

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      GAGE LENDER, OR MORTGAGE SERVICER SHALL NOT PAY DIRECTLY OR INDI-

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      RECTLY ANY COMPENSATION, COMMISSION, FEE, POINTS, OR OTHER REMU-

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      NERATION OR BENEFITS TO A RESIDENTIAL MORTGAGE ORIGINATOR OTHER

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      THAN AN EMPLOYEE OF THE MORTGAGE BROKER, MORTGAGE LENDER, OR

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      MORTGAGE SERVICER.  AS USED IN THIS SUBSECTION AND SUBSECTION



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      (3), "RESIDENTIAL MORTGAGE ORIGINATOR" MEANS A PERSON WHO ASSISTS

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      ANOTHER PERSON IN OBTAINING A MORTGAGE LOAN.

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           (5)  (3) No later than 90 days after the effective date of

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      the amendatory act that added this subsection, a  A mortgage

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      broker, mortgage lender, or mortgage servicer that was exempt

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      from regulation under this act and is a subsidiary or affiliate

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      of a depository financial institution or  a subsidiary or affili-

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      ate of  a depository financial institution holding company  ,

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      which depository financial institution  THAT does not maintain a

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      main office or branch office in this state, shall register under

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      section 6 or shall discontinue all activities  which are  subject

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      to this act.

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           (6)  (4)  Except for a state or nationally chartered bank,

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      savings bank, or an affiliate of a bank or savings bank, the

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      person subject to this act shall not include in its name or

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      assumed name, the words "bank", "banker", "banking", "banc",

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      "bankcorp", "bancorp", or any other words or phrases that would

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      imply that the person is a bank, is engaged in the business of

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      banking, or is affiliated with a bank or savings bank.  It is not

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      a violation of this subsection for a licensee or registrant to

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      use the term "mortgage banker" or "mortgage banking" in its name

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      or assumed name.  A person subject to this act whose name or

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      assumed name on January 1, 1995 contained a word prohibited by

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      this section may continue to use the name or assumed name.









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