SENATE BILL No. 1163

 

 

March 16, 2006, Introduced by Senator SCOTT and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1987 PA 173, entitled

 

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

 

(MCL 445.1651 to 445.1684) by adding section 22b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 22b. (1) Upon receipt of a written request from an

 

individual who is an outsourced worker or is unemployed as a result

 

of the bankruptcy of his or her employer, a licensee or registrant

 

shall allow the individual to defer making payments of principal

 

and to make payments of interest only on any mortgage loan made or

 

serviced by the licensee or registrant, without assessment of a

 

penalty or the accrual of additional interest and without declaring

 

a default on the loan, until the first of any of the following

 


occur:

 

     (a) The individual sells the residential real property

 

securing the mortgage loan.

 

     (b) The individual obtains comparable employment.

 

     (c) A period of 12 months has elapsed.

 

     (2) As used in this section, "outsourced worker" means an

 

adversely affected worker, as that term is defined in 20 CFR 617.3.