June 12, 2012, Introduced by Senator BOOHER 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 33 (MCL 445.1683), as amended by 2009 PA 76.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 33. (1) The mortgage industry advisory board is created.
(2) All of the following apply to the board:
(a) The board shall consist of 7 individuals, appointed by the
commissioner as follows:
(i) Two individuals who are employees of, are
directors of, or
have
at least a 25% ownership interest in a licensee or registrant,
selected
by the commissioner from a list of at least 3 nominees
provided
to the commissioner by the Michigan mortgage brokers
association.
(i) (ii) Two Four
individuals who are employees of, are
directors of, or have at least a 25% ownership interest in a
licensee or registrant, selected by the commissioner from a list,
of
at least 3 nominees provided to the
commissioner by the Michigan
mortgage lenders association, that includes at least 6 nominees, 3
of whom are employees of, directors of, or have at least a 25%
ownership interest in a person that holds a license or registration
under this act to provide services as a mortgage broker.
(ii) (iii) One
employee who is an employee of, a director of, or
who has at least a 25% ownership interest in a licensee or
registrant that is a member of any trade association operating in
this state that represents mortgage brokers, mortgage lenders, or
mortgage servicers. The trade associations may recommend candidates
for this position to the commissioner.
(iii) (iv) Two
individuals who are employees of, are directors
of, or have at least a 25% ownership interest in business entities
that provide services to or purchase services from licensees or
registrants.
(b) The term of a board member is 4 years, except that for the
first board, the commissioner shall appoint 3 individuals for 2-
year terms so that the terms of office of board members are
staggered.
(c) An individual may not serve more than 2 consecutive 4-year
terms, and the commissioner may not reappoint an individual who
serves 2 consecutive 4-year terms on the board for at least 12
months after the end of those consecutive terms.
(d) The board shall not include more than 1 member who is
employed by, is a director of, or has more than a 1% ownership
interest in the same licensee, registrant, affiliate, or other
person.
(e) Each member of the board shall serve without compensation.
However,
the office of financial and insurance services regulation
shall reimburse a member of the board for his or her travel and
other expenses incurred in the performance of an official board
function pursuant to the standard travel regulations of the
department of management and budget.
(f) The board shall retain minutes of its meetings and any
other records of the board for at least 10 years. The board shall
make its minutes and any other records prepared, owned, used, in
the possession of, or retained by the board in the performance of
an official function available to the commissioner immediately on
request and make those minutes and records available to the public
in compliance with the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
(3) The board shall communicate to the commissioner issues of
concern to the residential mortgage industry and shall review and
make recommendations to the commissioner concerning all of the
following:
(a) Rules proposed under this act, the secondary mortgage loan
act, or the mortgage loan originator licensing act, 2009 PA 75, MCL
493.131 to 493.171.
(b) Procedures for maintaining the confidentiality of personal
identifying information and other information concerning all of the
following:
(i) Licensees, registrants, and applicants for licensure or
registration.
(ii) Licensees, registrants, and applicants for licensure or
registration under the secondary mortgage loan act.
(iii) Licensees or applicants for licensure under the mortgage
loan originator licensing act, 2009 PA 75, MCL 493.131 to 493.171.
(c) Any other issue referred to the board by the commissioner.