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JJB H05171'25 l_HB6189_INTR_1 ye9n0j
HOUSE BILL NO. 6189
A bill to amend 2002 PA 660, entitled
"Consumer mortgage protection act ,"
by amending section 2 (MCL 445.1632), as amended by 2016 PA 44.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act: 1
(a) "Commissioner" or "director" means the director of the 2
department of insurance and financial services. 3
(b) "Depository institution" means a bank, savings and loan 4
association, savings bank, or credit union that is chartered under 5
July 03, 2026, Introduced by Reps. Schuette and Tisdel and referred to Committee on Finance.
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JJB H05171'25 l_HB6189_INTR_1 ye9n0j
state or federal law. 1
(c) "Home improvement installment contract" means an agreement 2
consisting of 1 or more documents that covers the sale of goods or 3
furnishing of services to a buyer for improvements to the buyer's 4
principal dwelling, if that dwelling is located in this state and 5
used for occupancy of 4 or fewer families, under which the buyer 6
promises to pay in installments all or any part of the price of the 7
goods or services. 8
(d) "Mortgage loan" means a loan or home improvement 9
installment contract secured by a first or subordinate mortgage or 10
any other form of lien or a land contract that covers real property 11
located in this state that is used as the borrower's principal 12
dwelling and is designed for occupancy by 4 or fewer families. 13
Mortgage loan does not include any of the following: 14
(i) A loan transaction in which the proceeds are used to 15
acquire the borrower's principal dwelling. 16
(ii) A reverse-mortgage transaction. 17
(iii) An open-end credit plan. As used in this subparagraph, 18
"open-end credit plan" means a loan in which the lender reasonably 19
contemplates repeated advances. 20
(iv) A loan transaction in which the proceeds are not used 21
primarily for a personal, family, or household purpose. 22
(e) "Person" means an individual, corporation, limited 23
liability company, partnership, association, governmental entity, 24
or any other legal entity. 25
(f) "Reverse-mortgage" means a nonrecourse loan under which 26
both of the following apply: 27
(i) A mortgage or other form of lien securing 1 or more 28
advances is created in the borrower's principal dwelling. 29
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(ii) The principal, interest, or shared appreciation or equity 1
is payable only after the borrower dies, the dwelling is 2
transferred, or the borrower ceases to occupy the dwelling as a 3
principal dwelling. 4
(g) "Regulated lender" means a any of the following: 5
(i) A depository institution. ; a 6
(ii) A licensee or a registrant under the any of the following: 7
(A) The consumer financial services act, 1988 PA 161, MCL 8
487.2051 to 487.2072. , 9
(B) 1984 PA 379, MCL 493.101 to 493.114. , 10
(C) For 6 months after the effective date of the residential 11
mortgage licensing and supervision act, the secondary mortgage loan 12
act, 1981 PA 125, MCL 493.51 to 493.81, or the mortgage brokers, 13
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 14
445.1684. ; or a 15
(D) Beginning on the effective date of the residential 16
mortgage licensing and supervision act, the residential mortgage 17
licensing and supervision act. 18
(iii) A seller under the home improvement finance act, 1965 PA 19
332, MCL 445.1101 to 445.1431. 20
(h) "State and federal laws" means, individually and 21
collectively, 1 or more of the laws or regulations of this state or 22
the federal government which that regulate or are applicable to a 23
mortgage loan or a person that is brokering, making, servicing, or 24
collecting a mortgage loan, including, without limitation, the but 25
not limited to, any of the following: 26
(i) The truth in lending act, 15 USC 1601 to 1667f. , 27
(ii) The real estate settlement procedures act of 1974, Public 28
Law 93-533. , 88 Stat. 1724, 29
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(iii) The equal credit opportunity act, 15 USC 1691 to 1691f. , 1
(iv) The fair housing act, title VIII of the civil rights act 2
of 1968, Public Law 90-284. , 82 Stat. 81, 3
(v) The fair credit reporting act, 15 USC 1681 to 1681x. , the 4
(vi) The homeowners protection act of 1998, Public Law 105-216. 5
, 112 Stat. 897, 6
(vii) The fair debt collection practices act, 15 USC 1601nt and 7
1692 to 1692o, 1692p. 8
(viii) The Dodd-Frank Wall Street reform and consumer protection 9
act, Public Law 111-203. , 10
(ix) The consumer financial services act, 1988 PA 161, MCL 11
487.2051 to 487.2072. , 12
(x) For 6 months after the effective date of the residential 13
mortgage licensing and supervision act, the mortgage brokers, 14
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 15
445.1684, or the secondary mortgage loan act, 1981 PA 125, MCL 16
493.51 to 493.81. , 17
(xi) Beginning on the effective date of the residential 18
mortgage licensing and supervision act, the residential mortgage 19
licensing and supervision act. 20
(xii) 1977 PA 135, MCL 445.1601 to 445.1614. , and 21
(xiii) The home improvement finance act, 1965 PA 332, MCL 22
445.1101 to 445.1431. 23
Enacting section 1. This amendatory act does not take effect 24
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 25
Legislature is enacted into law. 26