HOUSE BILL No. 5380


     November 13, 1997, Introduced by Reps. Callahan, Brater, DeHart, Hale, Wojno, Schauer, Bogardus, Frank and Brewer and referred to the Committee on Commerce.


        A bill to amend 1987 PA 173, entitled

   "Mortgage brokers, lenders, and servicers licensing act,"

   (MCL 445.1651 to 445.1684) by adding section 23a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 23A.  (1) IF A LICENSEE REQUIRES A MORTGAGEE TO OBTAIN

 2    PRIVATE MORTGAGE INSURANCE AS A CONDITION OF RECEIVING A MORTGAGE

 3    LOAN WITH A LOAN TO VALUE RATIO ABOVE A CERTAIN PERCENTAGE, WHEN

 4    THE LOAN BALANCE HAS DROPPED BELOW THE EQUITY REQUIREMENT THE

 5    LICENSEE SHALL NOTIFY THE MORTGAGEE AND DISCONTINUE THE PRIVATE

 6    MORTGAGE INSURANCE.

 7         (2) AS USED IN THIS SECTION, "PRIVATE MORTGAGE INSURANCE"

 8    MEANS INSURANCE OBTAINED TO PROTECT THE MORTGAGOR AGAINST BOR-

 9    ROWER DEFAULT.






   03914'97 *          Final page.                          SAT