October 16, 2007, Introduced by Senators STAMAS, RICHARDVILLE, ANDERSON, SANBORN, KAHN, GLEASON, SCHAUER, BIRKHOLZ, CLARKE, OLSHOVE, BROWN, CASSIS and HUNTER 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,"
(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), a loan officer registrant
seeking renewal of his or her loan officer registration shall
submit an application for renewal, in writing, before December 1 of
the year of his or her current registration. The applicant shall
include with the application the annual operating fee established
in section 8(3).
(3) The commissioner shall prescribe the form of application
for renewal of loan officer registration. The application form
shall require that an applicant provide at least all of the
following information:
(a) The name and home address of the applicant.
(b) The current registration number of the applicant.
(c) If the applicant is employed at the time he or she applies
for registration, the name and address of the principal office of
his or her employer.
(d) A statement as to whether the applicant 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 applicant held more than 25% of the
ownership interest or as a loan officer.
(e) Except as provided in subsection (8), with every second
annual renewal application beginning with the loan officer
registrant's second annual renewal application, proof in the form
of a certificate of completion or other evidence acceptable to the
commissioner that the applicant has in the immediately preceding 2
calendar years completed at least 12 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 12 hours of instruction shall include at least 3
hours related to legal and regulatory compliance and at least 2
hours related to ethics and fraud prevention. All of the following
apply to the course or courses described in this subdivision:
(i) A course that contains substantially similar subject matter
to another course completed by the applicant in the 2 calendar
years preceding the date of the applicant's last renewal of his or
her loan officer registration that required proof of completion
under this subdivision does not count toward the 12-hour
requirement described in this subdivision.
(ii) 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
an applicant's attendance of the course.
(iii) The course must be provided by a person approved by the
commissioner.
(f) A statement that the applicant's loan officer registration
is not subject to an order of suspension or revocation by the
commissioner.
(g) Any other information required by the commissioner.
(4) An applicant for renewal of a loan officer registration
shall include with the application an affidavit from the loan
officer registrant that discloses any criminal conviction of or
plea of no contest by the loan officer registrant occurring after 1
of the following, as applicable:
(a) If the renewal application is the loan officer
registrant's first renewal application, the date of the background
records check provided at the time of his or her initial
application.
(b) If the renewal application is the loan officer
registrant's second or subsequent renewal application, the date of
the most recent affidavit submitted under this subsection.
(5) The commissioner shall not renew the loan officer
registration of any loan officer who has ever been convicted of, or
pled no contest to, any felony involving embezzlement, forgery,
fraud, a financial transaction, or securities.
(6) If an individual applying for loan officer registration is
not currently registered and has not renewed his or her loan
officer registration for a period of more than 5 consecutive
calendar years, the individual is not considered a renewal
applicant and must apply for loan officer registration under
section 2a as a new applicant.
(7) If an individual applying for loan officer registration is
not currently registered and has not renewed his or her loan
officer registration for a period of fewer than 5 consecutive
calendar years, the individual may during that period apply for
registration under this section as a renewal applicant.
(8) An applicant for loan officer registration who has a
valid, similar license or registration from another state that has
a reciprocal agreement with the commissioner concerning instruction
requirements for loan officers may satisfy subsection (3)(d) by
submitting proof that he or she is in compliance with the
instructional requirements of that state at the time of application
for loan officer registration.
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. 828.
(b) Senate Bill No. 826.
(c) House Bill No. 5288.
(d) House Bill No. 5289.
(e) Senate Bill No. 830.
(f) Senate Bill No. 831.
(g) House Bill No. 5287.
(h) House Bill No. 5290.
(i) House Bill No. 5291.
(j) Senate Bill No. 833.
(k) Senate Bill No. 832.