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HOUSE BILL NO. 6201
A bill to amend 1987 PA 173, entitled
"Mortgage brokers, lenders, and servicers licensing act,"
by amending sections 8 and 32 (MCL 445.1658 and 445.1682), section
8 as amended by 2009 PA 76.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) At the time of making an initial application for a 1
license under this act, and at the time of making the first 2
application for a license after the suspension or revocation of a 3
license, an applicant for licensure under this act shall pay to the 4
commissioner director a fee for investigating the applicant and the 5
July 03, 2026, Introduced by Rep. Tisdel and referred to Committee on Finance.
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minimum annual operating fee established by the commissioner 1
director in subsection (3). To renew a license that is not 2
suspended or revoked, the applicant shall only pay to the 3
commissioner director the annual operating fee established in 4
subsection (3). At the time of filing a registration or a renewal 5
of a registration, a registrant shall pay to the commissioner 6
director an annual operating fee established in subsection (3). 7
(2) If an initial or renewed license or registration described 8
in subsection (1) will have has an effective date within 6 months 9
of the expiration date described in section 7, the initial or 10
renewal annual operating fee for that license or registration is 11
1/2 of the annual operating fee. 12
(3) The commissioner director shall annually establish a 13
schedule of fees that are sufficient to pay, but not to exceed, the 14
office of financial and insurance regulation's department's 15
reasonably anticipated costs of administering and enforcing this 16
act. Subject to subsection (2), the fees are as follows: 17
(a) For the investigation of an applicant for a license, a fee 18
of not less than $400.00 or more than $1,000.00. 19
(b) Except as set forth in subdivision (c), a licensee or 20
registrant annually shall pay an operating fee based upon on the 21
number of closed mortgage loans the licensee or registrant brokered 22
to other parties, the number of mortgage loans closed by the 23
licensee or registrant during the previous calendar year, and the 24
dollar volume of loans serviced by the licensee or registrant as of 25
December 31 of the previous calendar year. In the 1-year period 26
beginning July 2, 1996, the operating fee shall must be not less 27
than $250.00 and not more than $2,500.00. Beginning July 2, 1997, 28
in the discretion of the commissioner, director, subject to the 29
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limitation set forth in this subsection, the commissioner director 1
may increase the maximum operating fee at an annual rate of not 2
more than 10% in the second, third, and fourth 1-year periods after 3
the 1-year period beginning July 2, 1996, and in the fifth and 4
subsequent years, at an annual rate of not more than the annual 5
increase for the immediately preceding 12-month period in the 6
Detroit consumer price index Consumer Price Index as reported by 7
the United States department of labor. Department of Labor. For 8
purposes of this subdivision, "mortgage loan" includes only 9
mortgage loans subject to this act. 10
(c) For amending or reissuing a license or registration, a fee 11
of not less than $15.00 or more than $200.00. 12
(d) A licensee or registrant shall pay the actual travel, 13
lodging, and meal expenses incurred by employees of the office of 14
financial and insurance regulation department who travel out of 15
state to examine the records of the licensee or investigate the 16
licensee or registrant and the cost of independent investigators 17
employed under section 20(1)(e). 18
(4) Fees received under this act are not refundable. 19
(5) If any fees or penalties provided for in this act are not 20
paid when required, the attorney general may maintain an action 21
against the delinquent licensee or registrant for the recovery of 22
the fees or penalties together with interest and costs. 23
(6) A licensee or registrant who that fails to submit to the 24
commissioner director a report required under section 7 or section 25
21 is subject to a penalty of $25.00 for each day the report is 26
delinquent or $1,000.00, whichever is less. 27
(7) A licensee or registrant whose license or registration 28
renewal fee is not received on or before December 31 is subject to 29
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a penalty of $25.00 for each day the fee is delinquent or 1
$1,000.00, whichever is less. 2
(8) The department of treasury shall establish and administer 3
a restricted account in the general fund named the MBLSLA fund. The 4
department of treasury shall credit to the account all fees 5
collected under this act or under the commissioner's director's 6
authority under this act, fees described in section 6a of the 7
secondary mortgage loan act, MCL 493.56a, fees established under 8
the mortgage loan originator licensing act, 2009 PA 75, MCL 493.131 9
to 493.171, except those fees described in section 19 of the 10
mortgage loan originator licensing act, 2009 PA 75, MCL 493.149, 11
and money appropriated or received from any source. The department 12
of treasury shall use the money in the account only to provide 13
money to the commissioner director to administer and enforce this 14
act, the secondary mortgage loan act, and the mortgage loan 15
originator licensing act, 2009 PA 75, MCL 493.131 to 493.171, and 16
to pay other costs associated with the commissioner's director's 17
regulatory obligations. Money Except as otherwise provided in this 18
section, money in the account at the end of a state fiscal year 19
shall does not revert to the general fund but shall must be carried 20
over in the account to the next state fiscal year. Six months after 21
the effective date of the residential mortgage licensing and 22
supervision act, the state treasurer shall do both of the 23
following: 24
(a) Transfer any money in the MBLSLA fund to the residential 25
mortgage administration fund created in section 153 of the 26
residential mortgage licensing and supervision act. 27
(b) Close the MBLSLA fund. 28
(9) The annual operating fee set by the commissioner director 29
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under subsection (3)(b) shall must be based upon on information in 1
reports filed under section 21. 2
(10) As used in this section: 3
(a) "Department" means the department of insurance and 4
financial services. 5
(b) "Director" means the director of the department. 6
Sec. 32. (1) Notwithstanding the provisions of section 19, if 7
the commissioner director determines that a licensee or registrant 8
is, intentionally or as a result of gross or wanton negligence, not 9
servicing mortgage loans in accordance with the terms of this act 10
or the terms of the servicing contracts, the commissioner director 11
may appoint a conservator for the licensee or registrant and 12
require of the conservator a bond and security as the commissioner 13
director considers proper. The commissioner director may appoint as 14
conservator 1 of the examiners of the bureau department or some 15
other competent and disinterested person. The bureau shall 16
department must be reimbursed out of the assets of the 17
conservatorship for actual expenses incurred by it in connection 18
with the conservatorship. Amounts reimbursed shall must be paid 19
into the revolving fund provided for in subsection (4). Upon 20
appointment under this subsection, a conservator shall become an 21
employee of the bureau. department. All expenses of a 22
conservatorship shall must be paid out of the assets of the 23
licensee or registrant , upon the approval of the commissioner. 24
director. The expenses shall must be a first charge upon on the 25
assets of the licensee or registrant and shall must be fully paid 26
before any final distribution or payment of dividends is made to 27
creditors or shareholders. 28
(2) The conservator, under the direction of the commissioner, 29
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director, shall take sole control of all the affairs of the 1
licensee or registrant and possession of the books and records of 2
the licensee or registrant. Notwithstanding the foregoing, the 3
licensee or registrant may cause the rights to service mortgage 4
loans to be transferred or assigned to a person approved by the 5
commissioner. director. The conservator of the licensee or 6
registrant shall take such action as may be necessary to assure 7
that the mortgage loans are serviced in accordance with the terms 8
of this act and the servicing contracts. 9
(3) If the commissioner director is satisfied that termination 10
of the conservatorship may be done safely and is in the public 11
interest, the commissioner director may terminate the 12
conservatorship and permit the licensee or registrant to resume the 13
servicing of mortgage loans subject to any terms, conditions, and 14
limitations as the commissioner director may prescribe. 15
(4) All compensation and expenses required to be reimbursed to 16
the financial institutions bureau department in connection with a 17
conservatorship and all expenses for state supervision of 18
conservatorships under this act shall must be deposited in the 19
state treasury and shall must be directed to a bureau department 20
revolving fund. Money Except as otherwise provided in this 21
subsection, money in the revolving fund and any interest earned 22
shall must only be disbursed on proper vouchers, approved by the 23
commissioner, director to reimburse the bureau department for 24
expenses incurred by the bureau department in connection with 25
conservators of licensees or registrants. Six months after the 26
effective date of the residential mortgage licensing and 27
supervision act, the state treasurer shall do both of the 28
following: 29
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(a) Transfer any money in the revolving fund to the 1
residential mortgage conservator fund created in section 155 of the 2
residential mortgage licensing and supervision act. 3
(b) Close the revolving fund. 4
(5) As used in this section: 5
(a) "Department" means the department of insurance and 6
financial services. 7
(b) "Director" means the director of the department. 8
Enacting section 1. This amendatory act does not take effect 9
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 10
Legislature is enacted into law. 11