HOUSE BILL No. 5076


     September 20, 2001, Introduced by Rep. Bishop and referred to the Committee on Commerce.


        A bill to amend 1987 PA 173, entitled

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

   by amending section 2 (MCL 445.1652), as amended by 1996 PA 210.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2.  (1) A person shall not act as a mortgage broker,

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      mortgage lender, MORTGAGE LOAN OFFICER, or mortgage servicer

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      without first obtaining a license or registering under this act,

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      unless 1 or more of the following apply:

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           (a) The person is solely performing services as an employee

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      of only 1 mortgage broker, mortgage lender, MORTGAGE LOAN

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      OFFICER, or mortgage servicer.

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           (b) The person is exempted from the act under section 25.

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           (c) The person is licensed as a class I licensee under the

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      consumer financial services act,  Act No. 161 of the Public Acts




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      of 1988, being sections 487.2051 to 487.2072 of the Michigan

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      Compiled Laws  1988 PA 161, MCL 487.2051 TO 487.2072.

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           (2)  No later than 90 days after the effective date of the

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      amendatory act that added this subsection, a  A person that is

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      licensed to make regulatory loans under the regulatory loan act

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      of 1963,  Act No. 21 of the Public Acts of 1939, being sections

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      493.1 to 493.26 of the Michigan Compiled Laws  1939 PA 21, MCL

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      493.1 TO 493.26, or is licensed to make secondary mortgage loans

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      under  Act No. 125 of the Public Acts of 1981, being sections

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      493.51 to 493.81 of the Michigan Compiled Laws  1981 PA 125, MCL

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      493.51 TO 493.81, and is registered with the commissioner shall

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      file with the commissioner an application for a license under

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      section 3(1) or shall discontinue all activities which are

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      subject to this act.

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           (3)  No later than 90 days after the effective date of the

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      amendatory act that added this subsection, a  A mortgage broker,

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      mortgage lender, MORTGAGE LOAN OFFICER, or mortgage servicer that

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      was exempt from regulation under this act and is a subsidiary or

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      affiliate of a depository financial institution or  a subsidiary

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      or affiliate of  a depository financial institution holding com-

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      pany,  which depository financial institution  THAT does not

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      maintain a main office or branch office in this state, shall reg-

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      ister under section 6 or shall discontinue all activities  which

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      are  subject to this act.

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           (4) Except for a state or nationally chartered bank, savings

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      bank, or an affiliate of a bank or savings bank, the person

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      subject to this act shall not include in its name or assumed



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      name, the words "bank", "banker", "banking", "banc", "bankcorp",

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      "bancorp", or any other words or phrases that would imply that

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      the person is a bank, is engaged in the business of banking, or

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      is affiliated with a bank or savings bank.  It is not a violation

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      of this subsection for a licensee or registrant to use the term

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      "mortgage banker" or "mortgage banking" in its name or assumed

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      name.  A person subject to this act whose name or assumed name on

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      January 1, 1995 contained a word prohibited by this section may

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      continue to use the name or assumed name.






































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