November 5, 2008, Introduced by Senators JANSEN, RICHARDVILLE, SANBORN, BARCIA, BROWN, BIRKHOLZ, PAPPAGEORGE, GARCIA and BASHAM 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,"
by amending section 2a (MCL 445.1652a), as added by 2008 PA 60.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2a. (1) Beginning January April
1, 2009, an employee or
agent of a licensee or registrant shall not perform services of a
loan officer unless he or she registers or otherwise complies with
this section.
(2)
Beginning January April 1, 2009, a
licensee or registrant
that employs or offers to employ, or engages or offers to engage as
an agent, an individual as a loan officer to originate mortgage
loans
shall conduct a criminal records check of that individual and
submit
the results of the criminal records check to the
commissioner.
A criminal records check under this subsection shall
include
a check of the individual’s fingerprints, taken by a law
enforcement
agency or other person determined by the commissioner
to
be qualified to take fingerprints. history
check of that
individual. All of the following apply to the criminal history
check of an individual required under this subsection:
(a) The department of state police and the federal bureau of
investigation shall perform the criminal history check required
under this subsection.
(b) The individual who is the subject of the criminal history
check shall have his or her fingerprints taken by a law enforcement
agency or by another person that the commissioner determines is
qualified to take fingerprints; pay the agency or person the fees
required by the department of state police under section 3 of 1935
PA 120, MCL 28.273, and by the federal bureau of investigation, for
processing fingerprints and completing a criminal history check;
and request that the agency or person forward the fingerprints, a
request for a criminal history check of the individual in the
format and as prescribed by the department of state police, and the
fees to the department of state police.
(c) The department of state police shall forward the
fingerprints and appropriate fee to the federal bureau of
investigation for a national criminal history check.
(d) After receiving a proper request and the required fees
under this subsection, the department of state police shall conduct
the criminal history check and provide the licensee or registrant
with the results of the criminal history check. The results shall
contain any criminal history record information concerning the
individual maintained by the department of state police and the
results of the federal bureau of investigation's criminal history
check.
(e) The licensee or registrant shall submit the results of the
criminal history check described in subdivision (d) to the
commissioner with the application for loan officer registration
described in subsection (4) or for purposes of subsection (5).
(3)
Beginning January April 1, 2009, if
an individual is
employed or engaged as an agent to originate mortgage loans by a
licensee or registrant, that individual shall apply for loan
officer registration under this section within 90 days after he or
she begins providing services as an employee or agent of the
licensee or registrant, by submitting the application described in
subsection (4), in writing, and including with the application the
annual operating fee established under section 8(3).
(4) The commissioner shall prescribe the form of application
for
registration as a loan officer. Subject to subsection (9) (8),
the application form shall require that an applicant provide at
least all of the following to the commissioner:
(a) The name and home address of the applicant.
(b) A statement as to whether the applicant has ever been
convicted of, or pled no contest to, any of the following:
(i) A misdemeanor involving embezzlement, forgery, fraud, a
financial transaction, or securities.
(ii) A felony.
(c) 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.
(d) Except for an application described in subsection (7),
proof in the form of a certificate of completion or other evidence
acceptable to the commissioner that the applicant has completed at
least 24 hours of live professional classroom instruction in this
state in an introductory course in residential mortgage lending
that is sponsored or provided by a person, and taught by an
instructor, approved by the commissioner. The 24 hours of
instruction shall include at least 3 hours of live classroom
instruction concerning state and federal laws and regulations
governing residential mortgage lending, the content of which has
been approved by the commissioner.
(e) Evidence acceptable to the commissioner that the applicant
correctly answered at least 75% of the questions on an examination
approved by the commissioner that tests an applicant’s knowledge of
the contents of the introductory course in residential mortgage
lending described in subdivision (d).
(f)
A copy of the The results of the criminal records history
check described in subsection (2).
(g) The signature of the applicant, and his or her
declaration, made under penalties of perjury, that the information
and statements made in or included with the application are true,
accurate, and complete.
(h) The signature of an officer on behalf of the licensee or
registrant that employs or offers to employ, or engages or offers
to engage as an agent, the applicant, and the officer's declaration
on behalf of the licensee or registrant, made under penalties of
perjury, that the information and statements in or included with
the application are true, accurate, and complete to the best of his
or her knowledge and belief.
(i) (g)
Any other information required by
the commissioner.
(5)
Beginning January April 1, 2009, an applicant for loan
officer registration may perform services as a loan officer while
his or her application is pending if all of the following are met:
(a) The licensee or registrant that is the employer or
principal
of the applicant has completed the criminal records
history check of the applicant described in subsection (2) and
submitted
the results of that criminal records history check to the
commissioner.
(b)
The criminal records history
check described in
subdivision (a) does not disclose that the applicant has been
convicted of, or pled no contest to, any of the following:
(i) A felony or misdemeanor involving embezzlement, forgery,
fraud, a financial transaction, or securities.
(ii) Within the 10-year period preceding the date of the
application, a felony other than a felony described in subparagraph
(i).
(c) The licensee or registrant that is the employer or
principal of the applicant has provided the commissioner with
written notice that the applicant is beginning to provide services
as a loan officer for the licensee or registrant.
(6) The commissioner shall not issue a registration to any of
the following:
(a) An applicant who has been convicted of, or pled no contest
to, any of the following:
(i) A felony or misdemeanor involving embezzlement, forgery,
fraud, a financial transaction, or securities.
(ii) Within the 10-year period preceding the date of the
application, a felony other than a felony described in subparagraph
(i).
(b) An applicant against whom the commissioner has issued a
prohibition order under section 18a.
(c) An applicant for whom the commissioner has not received
the
results of the criminal records history
check described in
subsection (2).
(7) The commissioner must register a loan officer who meets
all of the following:
(a) For the 5-year period immediately preceding the effective
date of the amendatory act that added this section, he or she was
employed or engaged as a loan officer for at least 4-1/2 years by 1
or more licensees, registrants, or persons exempt from this act
under section 25.
(b) He or she was not the subject of any prohibition orders
issued by the commissioner under section 18a in the 5-year period
immediately preceding the effective date of the amendatory act that
added this section.
(c) Within 8 months after the effective date of the amendatory
act that added this section, he or she takes the examination
described in subsection (4)(e) and correctly answers at least 75%
of the questions on the examination.
(d) Within 8 months after the effective date of the amendatory
act that added this section, he or she submits an application under
subsection (4). However, the applicant is not required to complete
or submit proof of completion of the instruction described in
subsection (4)(d).
(e) He or she is not an applicant described in subsection (6).
(8)
An employee or agent of a mortgage broker, mortgage
lender,
or mortgage servicer that is exempt from licensing or
registration
under this act may apply to be a loan officer
registrant
under this section.
(8) (9)
The commissioner may waive any of
the requirements of
this section for loan officer registration if the applicant has a
valid, similar license or registration from another state that has
a reciprocal agreement with the commissioner, except subsection
(6)(a) and (c).
(9) (10)
The commissioner may disclose,
provide, or make
available to the public the names, business addresses, and business
telephone numbers of loan officer registrants. The commissioner
shall not disclose, provide, or make available to the public any
other personal identifying information about loan officer
registrants or applicants for loan officer registration.
(10) (11)
Beginning January April 1,
2009, an individual
employed or engaged as an agent by a licensee or registrant as a
loan officer shall not use the title or designation "loan officer",
"loan originator", "mortgage loan officer", or "mortgage loan
originator" if he or she is not a loan officer registrant. A loan
officer registrant and the employer or principal of a loan officer
registrant shall not use the word "registered", "certified", or any
word of similar import in his or her title or designation to
identify him or her as an individual who has met the registration
requirements of this act unless use of that word is approved by the
office of financial and insurance services.
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.____ or House Bill No.____ (request no.
06815'08).
(b) Senate Bill No.____ or House Bill No.____ (request no.
08018'08 *).
(c) Senate Bill No.____ or House Bill No.____ (request no.
08020'08 *).
(d) Senate Bill No.____ or House Bill No.____ (request no.
08164'08).