SB-1553, As Passed House, December 3, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1553

A bill to amend 1987 PA 173, entitled

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

by amending section 8 (MCL 445.1658), as amended by 2008 PA 72.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 8. (1) At the time of making an initial application for a

license under this act, and at the time of making the first

application for a license after the suspension or revocation of a

license, an applicant for licensure under this act shall pay to the

commissioner a fee for investigating the applicant and the minimum

annual operating fee established by the commissioner in subsection

(3). To renew a license that is not suspended or revoked, the

applicant shall only pay to the commissioner the annual operating

fee established in subsection (3). At the time of filing a

registration or a renewal of a registration, a registrant shall pay

to the commissioner an annual operating fee established in

subsection (3).

(2) If an initial or renewed license or registration described

in subsection (1) will have an effective date within 6 months of

the expiration date described in section 7, the initial or renewal

annual operating fee for that license or registration is 1/2 of the

annual operating fee.

(3) The commissioner shall annually establish a schedule of

fees that are sufficient to pay, but not to exceed, the office of

financial and insurance regulation's reasonably anticipated costs

of administering and enforcing this act. Subject to subsection (2),

the fees are as follows:

(a) For the investigation of an applicant for a license, a fee

of not less than $400.00 or more than $1,000.00.

(b) Except as set forth in subdivision (c), a licensee or

registrant annually shall pay an operating fee based upon the

number of closed mortgage loans the licensee or registrant brokered

to other parties, the number of mortgage loans closed by the

licensee or registrant during the previous calendar year, and the

dollar volume of loans serviced by the licensee or registrant as of

December 31 of the previous calendar year. In the 1-year period

beginning July 2, 1996, the operating fee shall be not less than

$250.00 and not more than $2,500.00. Beginning July 2, 1997, in the

discretion of the commissioner, subject to the limitation set forth

in this subsection, the commissioner may increase the maximum

operating fee at an annual rate of not more than 10% in the second,

third, and fourth 1-year periods after the 1-year period beginning

July 2, 1996, and in the fifth and subsequent years, at an annual

rate of not more than the annual increase for the immediately

preceding 12-month period in the Detroit consumer price index as

reported by the United States department of labor. For purposes of

this subdivision, "mortgage loan" includes only mortgage loans

subject to this act.

officer registration, a fee of not less than $15.00 or more than

$200.00.

(d) A licensee or registrant shall pay the actual travel,

lodging, and meal expenses incurred by employees of the office of

financial and insurance regulation who travel out of state to

examine the records of the licensee or investigate the licensee or

registrant and the cost of independent investigators employed under

section 20(1)(e).

(e) A An annual fee for each loan officer registrant ~~shall pay~~

~~an annual fee~~ in an amount established by the commissioner. For

purposes of this subdivision, the commissioner shall establish an

amount for the annual fee that is sufficient to defray the

estimated cost of administering and enforcing the loan officer

registration provisions of this act.

(4) Fees received under this act are not refundable.

(5) If any fees or penalties provided for in this act are not

paid when required, the attorney general may maintain an action

against the delinquent licensee or registrant for the recovery of

the fees or penalties together with interest and costs.

(6) A licensee or registrant who fails to submit to the

commissioner a report required under section 7 or section 21 is

subject to a penalty of $25.00 for each day the report is

delinquent or $1,000.00, whichever is less.

(7) A licensee or registrant whose license or registration

renewal fee is not received on or before December 31 is subject to

a penalty of $25.00 for each day the fee is delinquent or

$1,000.00, whichever is less.

(8) The department of treasury shall establish and administer

a restricted account in the general fund named the MBLSLA fund. The

department of treasury shall credit to the account all fees

collected under this act or under the commissioner's authority

under this act, fees described in section 6a of the secondary

mortgage loan act, 1981 PA 125, MCL 493.56a, and money appropriated

or received from any source. The department of treasury shall use

the money in the account only to provide money to the commissioner

, to administer and enforce this act and the secondary mortgage

loan act, 1981 PA 125, MCL 493.51 to 493.81, and to pay other costs

associated with the commissioner's regulatory obligations. Money in

the account at the end of a state fiscal year shall not revert to

the general fund but shall be carried over in the account to the

next state fiscal year.

(9) The annual operating fee set by the commissioner under

subsection (3)(b) shall be based upon information in reports filed

under section 21.

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. 1552.