Read the full stored bill text
JJB H05171'25 p_HB6193_INTR_1 szqmtb
HOUSE BILL NO. 6193
A bill to amend 1988 PA 161, entitled
"Consumer financial services act,"
by amending sections 2, 6, and 9 (MCL 487.2052, 487.2056, and
487.2059), sections 2 and 6 as amended by 2006 PA 252 and section 9
as amended by 2009 PA 78.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act: 1
(a) "Applicant" means a person that has applied to the 2
commissioner to be licensed under this act. 3
July 03, 2026, Introduced by Reps. Frisbie, Tisdel, Alexander and Kuhn and referred to Committee
on Finance.
2
JJB H05171'25 p_HB6193_INTR_1 szqmtb
(b) "Bureau" means the office of financial and insurance 1
services of the department of labor and economic growth.department 2
of insurance and financial services. 3
(c) "Business activity" means any activity regulated by under 4
any of the financial licensing acts. 5
(d) "Class I license" means a license issued under this act 6
that authorizes the licensee to engage in all of the activities 7
permitted under any of the financial licensing acts. 8
(e) "Class II license" means a license issued under this act 9
that authorizes all of the activities permitted under a class I 10
license except for activities permitted under the sale of checks 11
act, 1960 PA 136, MCL 487.901 to 487.916, loan servicing activities 12
under any of the following: 13
(i) For 6 months after the effective date of the residential 14
mortgage licensing and supervision act, the secondary mortgage loan 15
act, 1981 PA 125, MCL 493.51 to 493.81. , or 16
(ii) For 6 months after the effective date of the residential 17
mortgage licensing and supervision act, the mortgage brokers, 18
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 19
445.1684. 20
(iii) Beginning on the effective date of the residential 21
mortgage licensing and supervision act, the residential mortgage 22
licensing and supervision act. 23
(f) "Commissioner" means the commissioner of the office of 24
financial and insurance services director of the bureau or an 25
authorized representative of the commissioner.director. 26
(g) "Control person" means a director or executive officer of 27
a licensee or a person who that has the authority to participate in 28
the direction, directly or indirectly through 1 or more other 29
3
JJB H05171'25 p_HB6193_INTR_1 szqmtb
persons, of the management or policies of a licensee. 1
(h) "Depository financial institution" means a bank, savings 2
and loan association, savings bank, or credit union organized under 3
the laws of this state, another state, the District of Columbia, 4
the United States, or a territory or protectorate of the United 5
States, whose deposits are insured by an agency of the federal 6
government. 7
(i) "Executive officer" means an officer, member, or partner 8
of a licensee, including chief executive officer, president, vice 9
president, chief financial officer, controller, compliance officer, 10
or any other similar position. 11
(j) "Financial licensing acts" means this any of the 12
following: 13
(i) This act. ; the 14
(ii) The regulatory loan act, 1939 PA 21, MCL 493.1 to 493.24. 15
; 16
(iii) For 6 months after the effective date of the residential 17
mortgage licensing and supervision act, the secondary mortgage loan 18
act, 1981 PA 125, MCL 493.51 to 493.81. ; the 19
(iv) The motor vehicle sales finance act, 1950 (Ex Sess) PA 27, 20
MCL 492.101 to 492.141. ; 21
(v) 1984 PA 379, MCL 493.101 to 493.114. ; the sale of checks 22
act, 1960 PA 136, MCL 487.901 to 487.916; the 23
(vi) The money transmission services act, 2006 PA 250, MCL 24
487.1001 to 487.1048; and 487.1047. 25
(vii) For 6 months after the effective date of the residential 26
mortgage licensing and supervision act, the mortgage brokers, 27
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 28
445.1684. 29
4
JJB H05171'25 p_HB6193_INTR_1 szqmtb
(viii) Beginning on the effective date of the residential 1
mortgage licensing and supervision act, the residential mortgage 2
licensing and supervision act. 3
(k) "Licensee" means a person that is licensed under this act. 4
(l) "Loan servicing activities" means the collection or 5
remittance for a lender, noteowner, noteholder, or the licensee's 6
own account of 4 or more installment payments of the principal, 7
interest, or an amount placed in escrow under any of the following: 8
(i) For 6 months after the effective date of the residential 9
mortgage licensing and supervision act, a mortgage servicing 10
agreement or a mortgage loan subject to the mortgage brokers, 11
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 12
445.1684. , or 13
(ii) For 6 months after the effective date of the residential 14
mortgage licensing and supervision act, a mortgage servicing 15
agreement or secondary mortgage loan subject to the secondary 16
mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, or an 17
agreement with the mortgagor. 18
(iii) Beginning on the effective date of the residential 19
mortgage licensing and supervision act, a mortgage servicing 20
agreement, a residential mortgage loan, or a secondary mortgage 21
loan subject to the residential mortgage licensing and supervision 22
act. 23
(m) "Person" means an individual, corporation, partnership, 24
association, limited liability company, or any other legal entity. 25
Sec. 6. (1) An applicant for a license shall furnish a surety 26
bond or letter of credit to secure its the applicant's obligations 27
under this act to the commissioner. Except as otherwise provided in 28
this subsection, the principal amount of a surety bond or letter of 29
5
JJB H05171'25 p_HB6193_INTR_1 szqmtb
credit shall must be at least not less than $500,000.00. If the 1
applicant intends to provide money transmission services, as that 2
term is defined in section 2 3 of the money transmission services 3
act, 2006 PA 250, MCL 487.1003, the applicant shall must file a 4
surety bond that is in a principal amount as determined under 5
section 13(5)(b) of the money transmission services act, 2006 PA 6
250, MCL 487.1013, for a licensee under that act. 7
(2) A surety bond described in subsection (1) shall must be 8
payable to the commissioner for the benefit of the people of the 9
state of Michigan this state for the use of, and may be sued on by, 10
the this state. A surety bond or letter of credit shall remain 11
remains for the duration of the licensure period. 12
(3) A surety bond or letter of credit required under 13
subsection (1) shall must be in a form satisfactory to the 14
commissioner and payable upon on demand by the commissioner if he 15
or she the commissioner determines that the licensee is not 16
conducting its activities as required by this act and all of the 17
rules promulgated under this act, and has failed to pay all money 18
that becomes due to a any of the following: 19
(a) A person who that is an installment buyer under the motor 20
vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 492.101 to 21
492.141. , Michigan residents who purchase checks under the sale of 22
checks act, 1960 PA 136, MCL 487.901 to 487.916, Michigan residents 23
(b) A resident of this state who purchase purchases money 24
transmission services as defined in section 2 of under the money 25
transmission services act, 2006 PA 250, MCL 487.1001 to 487.1047. 26
(c) A loan applicants, applicant, loan servicing customers, 27
customer, and borrowers borrower under any of the following: 28
(i) For 6 months after the effective date of the residential 29
6
JJB H05171'25 p_HB6193_INTR_1 szqmtb
mortgage licensing and supervision act, the secondary mortgage loan 1
act, 1981 PA 125, MCL 493.51 to 493.81. , or 2
(ii) For 6 months after the effective date of the residential 3
mortgage licensing and supervision act, the mortgage brokers, 4
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 5
445.1684. , and the 6
(iii) Beginning on the effective date of the residential 7
mortgage licensing and supervision act, the residential mortgage 8
licensing and supervision act. 9
(d) The commissioner. 10
(4) The commissioner shall prioritize and pay claims against a 11
bond or letter of credit filed with the commissioner under this 12
section in a manner that, in the commissioner's discretion, best 13
protects the public interest. 14
(5) Claims described in subsection (4) may only be filed 15
against a licensee's bond or letter of credit by the commissioner 16
on behalf of the bureau and of individuals having claims and who 17
are any of the following, as applicable: , the licensee's 18
(a) A loan applicants, applicant, loan servicing customers, 19
customer, and borrowers borrower under any of the following: 20
(i) For 6 months after the effective date of the residential 21
mortgage licensing and supervision act, the secondary mortgage loan 22
act, 1981 PA 125, MCL 493.51 to 493.81. , or 23
(ii) For 6 months after the effective date of the residential 24
mortgage licensing and supervision act, the mortgage brokers, 25
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 26
445.1684. , Michigan residents who purchase checks under the sale 27
of checks act, 1960 PA 136, MCL 487.901 to 487.916, Michigan 28
residents 29
7
JJB H05171'25 p_HB6193_INTR_1 szqmtb
(iii) Beginning on the effective date of the residential 1
mortgage licensing and supervision act, the residential mortgage 2
licensing and supervision act. 3
(b) A resident of this state who purchase purchases money 4
transmission services as defined in section 2 of under the money 5
transmission services act, or persons 2006 PA 250, MCL 487.1001 to 6
487.1047. 7
(c) who are A person that is an installment buyers buyer under 8
the motor vehicle sales finance act, 1950 (Ex Sess) PA 27, MCL 9
492.101 to 492.141. 10
(6) Claims filed with the commissioner against a bond or 11
letter of credit by a loan applicant, loan servicing customer, or 12
borrower, for 6 months after the effective date of the residential 13
mortgage licensing and supervision act, under the secondary 14
mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, or the 15
mortgage brokers, lenders, and servicers licensing act, 1987 PA 16
173, MCL 445.1651 to 445.1684, shall or beginning on the effective 17
date of the residential mortgage licensing and supervision act, the 18
residential mortgage licensing and supervision act, must involve, 19
as applicable, only a mortgage loan, mortgage loan application, 20
secondary mortgage loan, or secondary mortgage loan application 21
secured or to be secured by real property used as a dwelling 22
located in this state. The amount of the claim shall must not 23
exceed actual fees paid by the claimant to the licensee in 24
connection with a loan application, overcharges of principal and 25
interest, and excess escrow collections by the licensee. 26
(7) Before payment of any claim filed under this section, 27
unless the commissioner waives, in whole or in part, the right to 28
priority of payment, the commissioner shall must be paid in full 29
8
JJB H05171'25 p_HB6193_INTR_1 szqmtb
for fines and fees due to the bureau and for expenses incurred in 1
investigating the licensee and in distributing the proceeds of the 2
bond or letter of credit. In the event that If valid claims exceed 3
the amount of the bond or letter of credit, each claimant except 4
the commissioner is entitled only to a pro rata amount of his or 5
her the claimant's valid claim. 6
Sec. 9. (1) Except as otherwise provided in subsection (2), a 7
licensee under this act shall comply with all of the requirements 8
of the financial licensing acts. 9
(2) A licensee under this act is exempt from provisions of the 10
financial licensing acts regulating any of the following: 11
(a) Application procedures. 12
(b) Licensing procedures. 13
(c) Payment of fees by the licensee. 14
(d) Filing of surety bonds. 15
(e) Denial, suspension, or revocation of a license. 16
(f) Retention of records. 17
(g) Filing of reports. 18
(3) A licensee may purchase a contract made in compliance with 19
the retail installment sales act, 1966 PA 224, MCL 445.851 to 20
445.873, or the home improvement finance act, 1965 PA 332, MCL 21
445.1101 to 445.1431. 22
(4) A licensee may have 1 or more loans outstanding to 1 23
borrower, but no a single loan transaction shall must not violate 24
the financial licensing act which that regulates the type of loan 25
transaction. 26
(5) A For 6 months after the effective date of the residential 27
mortgage licensing and supervision act, a licensee acting as a 28
mortgage broker or mortgage lender shall not employ or engage an 29
9
JJB H05171'25 p_HB6193_INTR_1 szqmtb
individual as a loan officer to originate mortgage loans unless he 1
or she the individual is a licensed loan officer. As used in this 2
subsection, "licensed loan officer", "loan officer", "originate", 3
"mortgage broker", and "mortgage lender" mean those terms as 4
defined in section 1a of the mortgage brokers, lenders, and 5
servicers licensing act, 1987 PA 173, MCL 445.1651a. 6
(6) A For 6 months after the effective date of the residential 7
mortgage licensing and supervision act, a licensee acting as a 8
broker or lender shall not employ or engage an individual as a 9
secondary mortgage loan officer to originate secondary mortgage 10
loans unless he or she the individual is a licensed secondary 11
mortgage loan officer. As used in this subsection, "broker", 12
"lender", "licensed secondary mortgage loan officer", "originate", 13
and "secondary mortgage loan officer" mean those terms as defined 14
in section 1 of the secondary mortgage loan act, 1981 PA 125, MCL 15
493.51. 16
(7) Beginning on the effective date of the residential 17
mortgage licensing and supervision act, a licensee acting as a 18
mortgage broker or mortgage lender shall not employ or engage an 19
individual as a mortgage loan originator unless the individual is 20
licensed as a mortgage loan originator under the residential 21
mortgage licensing and supervision act. As used in this subsection, 22
"mortgage broker", "mortgage lender", and "mortgage loan 23
originator" mean those terms as defined in section 5 of the 24
residential mortgage licensing and supervision act. 25
(8) (7) As used in this section, "employ" means an engagement 26
of an individual by a licensee that meets both of the following: 27
(a) Is acknowledged by the licensee and individual as an 28
employment relationship. 29
10
Final Page
JJB H05171'25 p_HB6193_INTR_1 szqmtb
(b) The licensee treats the individual as an employee for 1
compliance with federal income tax laws. 2
Enacting section 1. This amendatory act does not take effect 3
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 4
Legislature is enacted into law. 5