September 19, 2012, Introduced by Senators MARLEAU, GREEN and BOOHER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1977 PA 135, entitled
"An act to prohibit certain mortgage lending practices by a credit
granting institution; to prescribe the powers and duties of the
commissioner of the financial institutions bureau in relation to
those practices; to permit the establishment of local mortgage
review boards; and to provide remedies and penalties,"
by amending section 1 (MCL 445.1601).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a)
"Annual percentage rate" means the rate as computed that
term
as defined in and determined under the federal
truth in
lending
act, 15 U.S.C. USC 1601 to 1677 1667f.
(b)
"Commissioner" means the commissioner of the financial
institutions
bureau of the department of commerce office of
financial and insurance regulation of the department of licensing
and regulatory affairs.
(c) "Credit granting institution" means a state or nationally
chartered bank, a state or federally chartered savings and loan
association, a state or federally chartered credit union, the
Michigan state housing development authority, or a business entity
making
or purchasing mortgage loans, which that has a main office,
branch
office, or service center doing such business within in the
state of Michigan at which it conducts that business.
(d)
"Home improvement loan" means a loan secured or unsecured
to
be loan used for the purpose of repairing, rehabilitating,
or
remodeling an existing residential dwelling designed for occupancy
by 4 or fewer families, as stated by the borrower in the loan
application and as recorded on the books of the credit granting
institution.
(e) "Loan application" means a written application for a
mortgage loan or home improvement loan.
(f) "Loan contract" means a contract for a mortgage loan or
home improvement loan.
(g) "Mortgage loan" means a loan secured by a mortgage on real
property designed for occupancy by 4 or fewer families, including
an
individual units unit of
condominiums and cooperatives, a
condominium or cooperative, a refinancing of an existing mortgage
loan on real property designed for occupancy by 4 or fewer families
involving an increase in the outstanding balance of the principal
due, or a loan secured by a junior lien on real property designed
for occupancy by 4 or fewer families undertaken for any purpose.
Mortgage
loan does not include construction any of the following:
(i) Construction financing. ,
purchase
(ii) A purchase of an interest
in a pool of mortgage loans. ,
or
an
(iii) An extension of the maturity of an existing mortgage loan
that
does not involving include an
increase in the unpaid principal
due.
(iv) A loan transaction in which the proceeds are not used
primarily for a personal, family, or household purpose.
(h) "Neighborhood" means either of the following:
(i) A census tract as defined by the United States bureau of
the census in census of population, if located within a standard
metropolitan statistical area as defined by the United States
office of management and budget.
(ii) An area which that is
designated by a single zip code
number under the zoning improvement plan of the United States
postal service, if located outside a standard metropolitan
statistical area as defined by the United States office of
management and budget.