Mich. Comp. Laws § 445.1631
Short title.
This act shall be known and may be cited as the "consumer mortgage protection act".
Michigan Compiled Laws — CONSUMER MORTGAGE PROTECTION ACT (Act 660 of 2002)
Michigan · statute · 660 of 2002, Mich. Comp. Laws · 14 active provisions
Provisions
Mich. Comp. Laws § 445.1632
Definitions.
As used in this act: (a) "Commissioner" or "director" means the director of the department of insurance and financial services. (b) "Depository institution" means a bank, savings and loan association, savings bank, or credit union that is chartered under state or federal law. (c) "Home improvement installment contract"…
Mich. Comp. Laws § 445.1633
Compliance with state and federal laws.
A person shall broker, make, or service mortgage loans in accordance with all applicable state and federal laws.
Mich. Comp. Laws § 445.1634
Person making mortgage loan; prohibited conduct.
(1) A person offering to make or making a mortgage loan shall not do either of the following: (a) Charge a fee for a product or service if the product or service is not actually provided to the customer. (b) Misrepresent the amount charged by or paid to a third party for a product or service. (2) A lender in making a m…
Mich. Comp. Laws § 445.1635
Mortgage loan with term less than 5 years; payment schedule.
A mortgage loan with a term of less than 5 years shall not have a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance. This section does not apply to loans with maturities of less than 1 year, if the purpose of the loan is a "bridge" loan connecte…
Mich. Comp. Laws § 445.1636
Federal special information booklet; document to be prepared by department.
(1) Subject to subsection (2), at the time a person applies for a mortgage loan, the lender shall provide the applicant with a copy of the special information booklet described in 12 CFR 1024.6, issued under the authority of the real estate settlement procedures act of 1974, Public Law 93-533. (2) If the federal govern…
Mich. Comp. Laws § 445.1638
Examinations and investigations by commissioner.
The commissioner may conduct examinations and investigations of a person over whom the commissioner has regulatory authority as necessary to determine whether the person is brokering, making, servicing, or collecting mortgage loans as required by this act.
Mich. Comp. Laws § 445.1639
Violation of act.
If the commissioner determines that a person is brokering, making, servicing, or collecting mortgage loans in violation of this act, the commissioner shall do 1 or more of the following: (a) Initiate a cause of action under section 10. (b) If the person is chartered, licensed, registered, regulated, or administered by…
Mich. Comp. Laws § 445.1640
Action by attorney general or prosecuting attorney.
The attorney general or the prosecuting attorney for the county where an alleged violation occurred may bring an action against a person to do 1 or more of the following: (a) Obtain a declaratory judgment that a method, act, or practice of the person is a violation of this act. (b) Enjoin a person who is engaging or ab…
Mich. Comp. Laws § 445.1641
Unintentional and bona fide error.
(1) A person is not liable for a violation under section 10 if the person shows that the violation was an unintentional and bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the error. Examples of a bona fide error include clerical, calculation, computer malfunction, programming,…
Mich. Comp. Laws § 445.1642
Enforcement not limited.
This act does not limit the authority of the commissioner, the attorney general, or a county prosecutor to enforce any law under which a person is chartered, organized, licensed, registered, regulated, or otherwise authorized to do business in this state.
Mich. Comp. Laws § 445.1643
Model programs for financial education.
(1) The department of insurance and financial services shall develop and make available to local units of government, financial institutions, and other interested persons 1 or more model programs for financial education. (2) The program required under this section shall be designed to teach personal financial managemen…
Mich. Comp. Laws § 445.1644
Municipal actions; statutory conflict; preemption; severability.
(1) The federal government and state solely regulate the business of brokering, making, servicing, and collecting mortgage loans in this state and the manner in which any such business is conducted. (2) Any charter, ordinance, resolution, regulation, rule, or other action by a municipal corporation or other political s…
Mich. Comp. Laws § 445.1645
Standards; uniformity; preemption.
(1) The laws of this state relating to the brokering, making, servicing, and collecting of mortgage loans prescribe rules of conduct upon citizens generally, comprise a comprehensive regulatory framework intended to operate uniformly throughout the state under the same circumstances and conditions, and constitute gener…