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HB-5549, As Passed House, June 25, 2026
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HOUSE BILL NO. 5549
A bill to amend 1988 PA 161, entitled
"Consumer financial services act,"
by amending section 6 (MCL 487.2056), as amended by 2006 PA 252.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) An applicant for a license shall furnish a surety 1
bond or letter of credit to secure its the applicant's obligations 2
under this act to the commissioner. Except as provided in this 3
subsection, the principal amount of a surety bond or letter of 4
credit shall must be at least $500,000.00. If the applicant intends 5
February 19, 2026, Introduced by Reps. Tisdel, Lightner, Martin, B. Carter, Snyder and Schuette
and referred to Committee on Finance.
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to provide services for money transmission, services as defined in 1
section 2 of the money transmission services act, the applicant 2
shall must file a surety bond that is in a principal amount as 3
determined under section 13(5)(b) 67 of the money transmission 4
services modernization act for a licensee under that act. 5
(2) A surety bond described in subsection (1) shall must be 6
payable to the commissioner for the benefit of the people of the 7
this state of Michigan for the use of, and may be sued on by, the 8
this state. A surety bond or letter of credit shall remain remains 9
for the duration of the licensure period. 10
(3) A surety bond or letter of credit required under 11
subsection (1) shall must be in a form satisfactory to the 12
commissioner and payable upon on demand by the commissioner if he 13
or she the commissioner determines that the licensee is not 14
conducting its the licensee's activities as required by this act 15
and all of the rules promulgated under this act, and has failed to 16
pay all money that becomes due to a any of the following: 17
(a) A person who is an installment buyer under the motor 18
vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 to 19
492.141. , Michigan residents who purchase checks under the sale of 20
checks act, 1960 PA 136, MCL 487.901 to 487.916, Michigan residents 21
(b) A resident of this state who purchase purchases services 22
for money transmission. services as defined in section 2 of the 23
money transmission services act, 24
(c) A loan applicants, applicant, loan servicing customers, 25
customer, and borrowers or borrower under the secondary mortgage 26
loan act, 1981 PA 125, MCL 493.51 to 493.81, or the mortgage 27
brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 28
445.1651 to 445.1684, and the commissioner. 29
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(4) The commissioner shall prioritize and pay claims against a 1
bond or letter of credit filed with the commissioner under this 2
section in a manner that, in the commissioner's discretion, best 3
protects the public interest. 4
(5) Claims described in subsection (4) may only be filed 5
against a licensee's bond or letter of credit by the commissioner 6
on behalf of the bureau and of individuals having claims and who 7
are, as applicable, the licensee's any of the following: 8
(a) A loan applicants, applicant, loan servicing customers, 9
customer, and borrowers or borrower under the any of the following: 10
(i) The secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 11
493.81. , or the 12
(ii) The mortgage brokers, lenders, and servicers licensing 13
act, 1987 PA 173, MCL 445.1651 to 445.1684. , Michigan residents 14
who purchase checks under the sale of checks act, 1960 PA 136, MCL 15
487.901 to 487.916, Michigan residents 16
(b) A resident who purchase purchases services for money 17
transmission. services as defined in section 2 of the money 18
transmission services act, or persons 19
(c) A person who are is an installment buyers buyer under the 20
motor vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 21
to 492.141. 22
(6) Claims filed with the commissioner against a bond or 23
letter of credit by a loan applicant, loan servicing customer, or 24
borrower under the secondary mortgage loan act, 1981 PA 125, MCL 25
493.51 to 493.81, or the mortgage brokers, lenders, and servicers 26
licensing act, 1987 PA 173, MCL 445.1651 to 445.1684, shall must 27
involve, as applicable, only a mortgage loan, mortgage loan 28
application, secondary mortgage loan, or secondary mortgage loan 29
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Final Page
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application secured or to be secured by real property used as a 1
dwelling located in this state. The amount of the claim shall must 2
not exceed actual fees paid by the claimant to the licensee in 3
connection with a loan application, overcharges of principal and 4
interest, and excess escrow collections by the licensee. 5
(7) Before payment of any claim filed under this section, 6
unless the commissioner waives, in whole or in part, the right to 7
priority of payment, the commissioner shall must be paid in full 8
for fines and fees due to the bureau and for expenses incurred in 9
investigating the licensee and in distributing the proceeds of the 10
bond or letter of credit. In the event that valid claims exceed the 11
amount of the bond or letter of credit, each claimant except the 12
commissioner is entitled only to a pro rata amount of his or her 13
the claimant's valid claim. 14
Enacting section 1. This amendatory act takes effect January 15
1, 2026. 16
Enacting section 2. This amendatory act does not take effect 17
unless House Bill No. 5544 (request no. H02309'25) of the 103rd 18
Legislature is enacted into law. 19