SB-0829, As Passed Senate, February 27, 2008

SUBSTITUTE FOR

SENATE BILL NO. 829

A bill to amend 1987 PA 173, entitled

"Mortgage brokers, lenders, and servicers licensing act,"

(MCL 445.1651 to 445.1684) by adding section 2b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2b. (1) A loan officer registration is valid for 1

calendar year and terminates on December 31 unless it is renewed on

or before that date.

(2) Subject to subsection (6), to renew the loan officer

registrations of the loan officer registrants who are employees or

agents of a licensee or registrant, the licensee or registrant

shall submit an application for renewal before December 1 of the

year of the current loan officer registrations. The licensee or

registrant shall include with the application the annual operating

fee established in section 8(3) for each loan officer registrant

included in the application.

(3) The commissioner shall prescribe the form of the

application for renewal of loan officer registrations under

subsection (2) and the process for submitting an application for

renewal. The application form shall require that an applicant

provide at least all of the following information about each loan

officer registrant included in the application for renewal:

(a) The name, address, and current license or registration

number of the applicant.

(b) The name and home address of the loan officer registrant.

registrant.

(d) A statement as to whether the loan officer registrant 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 loan officer registrant held more

than 25% of the ownership interest or as a loan officer.

(e) Except as provided in subsection (7), proof acceptable to

the commissioner that the loan officer registrant has in the

immediately preceding calendar year completed at least 6 hours of

instruction in a course or courses relevant to the residential

mortgage lending industry, the content of which has been approved

by the commissioner. The 6 hours of instruction shall include at

least 1.5 hours related to legal and regulatory compliance and at

least 1 hour related to ethics and fraud prevention. All of the

following apply to the course or courses described in this

subdivision:

(i) A course may utilize a live instructor or be conducted by

electronic means, including, but not limited to, the internet,

digital broadcast, or satellite network. However, a course

conducted by electronic means must include a method of confirming a

loan officer registrant's completion of the course.

(ii) The course must be provided by a person approved by the

commissioner.

(f) Any other information required by the commissioner.

(4) Before a licensee or registrant submits an application for

renewal of a loan officer registration for a loan officer

registrant under subsection (2), the loan officer registrant shall

provide an affidavit to the licensee or registrant that discloses

any criminal conviction of or plea of no contest by the loan

officer registrant occurring between 1 of the following, as

applicable, and the date of the affidavit:

(a) If the renewal application is for the loan officer

registrant's first renewal of his or her loan officer registration,

the date of the background records check provided at the time of

his or her initial registration.

(b) If the renewal application is for the loan officer

registrant's second or subsequent renewal of his or her loan

officer registration, the date of the most recent affidavit

provided by the loan officer registrant to the licensee or

registrant under this subsection.

(5) The commissioner shall not renew the loan officer

Senate Bill No. 829 (S-2) as amended February 13, 2008

registration of any loan officer who has ever been convicted of, or

pled no contest to, any of the following:

(a) A felony or misdemeanor involving embezzlement, forgery,

fraud, a financial transaction, or securities.

(b) Within the 10-year period preceding the date of the

application for renewal, a felony other than a felony described in

subdivision (a).

(6) If an individual included in an application for renewal

under subsection (2) is not currently registered and his or her

loan officer registration has not been renewed for a period of more

than 5 consecutive calendar years, the individual must apply for a

loan officer registration under section 2a as a new applicant.

However, the applicant may include in a renewal application under

subsection (2) a request to renew the loan officer registration for

a loan officer registrant who is not currently registered if his or

her loan officer registration has not been renewed for a period of

fewer than 5 consecutive years.

(7) An applicant under subsection (2) for renewal of the loan

officer registration of a loan officer registrant who has a valid,

similar license or registration from another state that has [

instructional procedures and requirements for loan officers approved by

the commissioner ] may satisfy subsection (3)(e) by

submitting proof that he or she is in compliance with the

instructional requirements of that state at the time of

application.

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. 826.

(b) Senate Bill No. 827.

(d) Senate Bill No. 830.

(e) Senate Bill No. 831.

(f) Senate Bill No. 832.

(g) Senate Bill No. 833.

(h) House Bill No. 5287.

(i) House Bill No. 5288.

(j) House Bill No. 5289.

(k) House Bill No. 5290.

(l) House Bill No. 5291.