Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the banking code of 1999. Amends sec. 1106 of 1999 PA 276 (MCL 487.11106). TIE BAR WITH: HB 6177'26

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HOUSE BILL NO. 6195

A bill to amend 1999 PA 276, entitled
"Banking code of 1999,"
by amending section 1106 (MCL 487.11106).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1106. (1) The Except as otherwise provided in subsection 1
(2), the use of the word "bank", "banker", or "banking" or any 2
foreign language words of similar meaning as a designation or name, 3
or part of a designation or name under which business is or may be 4
conducted in this state, is restricted to a national bank, a bank 5
July 03, 2026, Introduced by Reps. Fairbairn and Tisdel and referred to Committee on Finance.
2
Final Page
JJB H05171'25 r_HB6195_INTR_1 um2z5w
subject to this act, an out-of-state bank, a bank holding company 1
registered under the bank holding company act, a foreign bank 2
agency, a foreign bank branch, a savings and loan holding company 3
as that term was defined in former 12 C.F.R. CFR 583.20, or a 4
savings bank that is lawfully conducting business in this state, 5
unless that designation or name, taken as a whole, would not imply 6
a banking business. Use 7
(2) Both of the following do not violate subsection (1): 8
(a) For 6 months after the effective date of the residential 9
mortgage licensing and supervision act, the use of the term 10
"mortgage banker" or "mortgage banking" in the name or assumed name 11
of a licensee or registrant under the mortgage brokers, lenders, 12
and servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684. 13
, does not violate this section. 14
(b) Beginning on the effective date of the residential 15
mortgage licensing and supervision act, the use of the term 16
"mortgage bank" or "mortgage banking" in the name or the assumed 17
name of a mortgage broker, mortgage lender, mortgage servicer, or 18
mortgage loan originator licensee under the residential mortgage 19
licensing and supervision act. 20
Enacting section 1. This amendatory act does not take effect 21
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 22
Legislature is enacted into law. 23