HB-5290, As Passed Senate, February 27, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5290

     A bill to amend 1987 PA 173, entitled

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

by amending sections 11 and 12 (MCL 445.1661 and 445.1662), section

11 as amended by 2002 PA 391.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 11. (1) The commissioner shall exercise general

supervision and control over mortgage brokers, mortgage lenders,

and mortgage servicers doing business in this state and loan

officers originating mortgage loans in this state.

     (2) In addition to the other powers granted to the

commissioner by this act, the commissioner shall have all of the

following powers:

     (a) To promulgate reasonable rules under the administrative

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, as

necessary to implement and administer this act.

     (b) To deny an application for a license, registration, or

loan officer registration.

     (c) To conduct examinations and investigations of any person

as necessary for the efficient enforcement of this act and the

rules promulgated under this act.

     (d) To advise the attorney general or the prosecuting attorney

of the a county in which the business is conducted a mortgage

broker, mortgage lender, or mortgage servicer is conducting

business or in which a loan officer resides that the commissioner

believes a licensee, registrant, or loan officer registrant, or

other person is violating this act. The attorney general or

prosecuting attorney may take appropriate legal action to enjoin

the operation of the business of the mortgage broker, mortgage

lender, or mortgage servicer or the originating of mortgages by the

loan officer or prosecute violations of this act.

     (e) To bring an action in the Ingham county circuit court in

the name and on behalf of this state against the a licensee,

registrant, loan officer registrant, or any other person who is

participating in, or about to participate in, any unsafe or

injurious practice or act in violation of this act or a rule

promulgated under this act, to enjoin the person from participating

in or continuing the practice or engaging in the act.

     (f) To order a person to cease and desist from a violation of

this act or a rule promulgated under this act in accordance with

under section 16.

     (g) To suspend or revoke a license, or registration, or loan

officer registration in accordance with under section 29.

     (h) To require that restitution be made in accordance with

under section 29.

     (i) To assess a civil fine in accordance with under section

29.

     (j) To censure a licensee, or registrant, or loan officer

registrant.

     (k) To issue an order to prohibit a person from being employed

by, an agent of, or control person of a licensee or registrant as

provided under section 18a.

     Sec. 12. (1) Notice The commissioner shall give notice to a

licensee, or registrant, or loan officer registrant of intention to

enter an order of suspending or revoking that person's license, or

registration, suspension or revocation or loan officer

registration, or notice to an applicant of a refusal to issue a

license, shall be given registration, or loan officer registration,

in writing , and served personally or sent by certified mail to the

licensee, registrant, loan officer registrant, or applicant.

     (2) Within 20 days after the notice of the intention to enter

an order of suspending or revoking a license, or registration,

suspension or revocation or loan officer registration, or a refusal

to issue a license, or registration, or loan officer registration

under subsection (1), the licensee, registrant, loan officer

registrant, or applicant may request a hearing to contest the order

or refusal. If a hearing regarding suspension or revocation is not

requested, the commissioner shall enter a final order regarding the

suspension or revocation. A hearing shall be conducted in

accordance with under the provisions of the administrative

procedures act of 1969, Act No. 306 of the Public Acts of 1969,

being sections 24.201 to 24.328 of the Michigan Compiled Laws 1969

PA 306, MCL 24.201 to 24.328.

     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.

     (c) Senate Bill No. 828.

     (d) Senate Bill No. 829.

     (e) Senate Bill No. 830.

     (f) Senate Bill No. 831.

     (g) Senate Bill No. 832.

     (h) Senate Bill No. 833.

     (i) House Bill No. 5287.

     (j) House Bill No. 5288.

     (k) House Bill No. 5289.

     (l) House Bill No. 5291.