March 17, 2009, Introduced by Reps. Leland, Simpson, Slavens, Liss and Barnett and referred to the Committee on Banking and Financial Services.
A bill to amend 2002 PA 660, entitled
"Consumer mortgage protection act,"
by amending sections 14 and 15 (MCL 445.1644 and 445.1645).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 14. (1) The federal government and state solely regulate
the business of brokering, making, servicing, and collecting
mortgage
home loans in this state and the manner in which any
such
that business is conducted.
(2) Any charter, ordinance, resolution, regulation, rule, or
other action by a municipal corporation or other political
subdivision of this state to regulate, directly or indirectly, the
brokering,
making, servicing, or collecting of mortgage home loans
constitutes a statutory conflict with the uniform operation
throughout the state of residential mortgage lending and is
preempted.
(3) Any charter, ordinance, resolution, regulation, rule, or
other action by a municipal corporation or other political
subdivision of this state to collect information about, require
reporting of, pledges regarding, notices, or certifications
concerning
home loans, lenders creditors, applicants,
deposits, or
credit experiences, character, and criminal background checks of
employees, agents, customers, or other persons is preempted by this
act.
(4) Any charter, ordinance, resolution, regulation, rule, or
other action by a municipal corporation or other political
subdivision of this state that attempts to regulate the brokering,
making,
servicing, or collecting of mortgage home loans constitutes
a statutory conflict and is preempted, including, without
limitation, if the ordinance, resolution, regulation, or other
action does either of the following:
(a) Disqualifies a person, or its subsidiaries or affiliates,
from doing business with the municipal corporation or other
political subdivision based upon the acts or practices of the
person or its subsidiaries or affiliates in brokering, making,
servicing,
or collecting mortgage home
loans.
(b) Imposes reporting requirements or other obligations upon a
person, or its subsidiaries or affiliates, based upon the person's,
or its subsidiaries' or affiliates', acts or practices in
brokering,
making, servicing, or collecting mortgage home loans.
(5)
If any provision of this section, or any application of
any
provision of this section, is for any reason held to be illegal
or
invalid, the illegality or invalidity shall not affect any legal
and
valid provision or application of this section, and the
provisions
and applications of this section shall be severable.
Sec. 15. (1) The laws of this state relating to the brokering,
making,
servicing, and collecting of mortgage home loans prescribe
rules of conduct upon citizens generally, comprise a comprehensive
regulatory framework intended to operate uniformly throughout the
state under the same circumstances and conditions, and constitute
general laws of this state.
(2) Silence in the statutes of this state with respect to any
act or practice in the brokering, making, servicing, or collecting
of
mortgage home loans shall not be interpreted to mean that the
state has not completely occupied the field or has only set minimum
standards in its regulation of brokering, making, servicing, or
collecting
of mortgage home loans.
(3) It is the intent of the legislature to entirely preempt
municipal corporations and other political subdivisions from the
regulation and licensing of persons engaged in the brokering,
making,
servicing, or collecting of mortgage home loans in this
state.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 4592(request no.
01098'09).
(b) Senate Bill No.____ or House Bill No. 4587(request no.
01099'09).
(c) Senate Bill No.____ or House Bill No. 4585(request no.
01100'09).
(d) Senate Bill No.____ or House Bill No. 4586(request no.
01101'09).
(e) Senate Bill No.____ or House Bill No. 4593(request no.
01103'09).
(f) Senate Bill No.____ or House Bill No. 4590(request no.
01104'09).
(g) Senate Bill No.____ or House Bill No. 4589(request no.
01105'09).
(h) Senate Bill No.____ or House Bill No. 4591(request no.
01106'09).