HB 6201

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