SB-0832, As Passed House, February 13, 2008

SUBSTITUTE FOR

SENATE BILL NO. 832

     A bill to amend 1987 PA 173, entitled

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

by amending section 22a (MCL 445.1672a), as added by 1996 PA 210,

and by adding section 22b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 22a. (1) A licensee or registrant shall not, directly or

indirectly, make a false, misleading, or deceptive advertisement

regarding mortgage loans or the availability of mortgage loans.

     (2) A licensee or registrant shall not advertise any size of

loan, security required for a loan, rate of charge, or other

condition of lending except with the full intent of making loans at

those rates, or lower rates, and under those conditions, to

mortgage loan applicants who meet the standards or qualifications

prescribed by the licensee or registrant.

     Sec. 22b. A loan officer registrant shall not do any of the

following:

     (a) Engage in fraud, deceit, or material misrepresentation in

connection with any transaction governed by this act.

     (b) Intentionally, or due to gross or wanton negligence,

repeatedly fail to provide borrowers with any material disclosures

of information required by law.

     (c) Directly or indirectly make a false, misleading, or

deceptive advertisement regarding mortgage loans or the

availability of mortgage loans.

     (d) Suppress or withhold from the commissioner any information

that the loan officer possesses and that, if submitted, would have

made the loan officer ineligible for registration or renewal of his

or her loan officer registration under this act at the time of

application and would have allowed the commissioner to refuse to

register the loan officer.

     (e) Be convicted of, or plead no contest to, any of the

following:

     (i) A misdemeanor involving embezzlement, forgery, fraud, a

financial transaction, or securities.

     (ii) A felony.

     (f) Refuse or fail to furnish any information or make any

report required by the commissioner to issue or renew a loan

officer registration, or otherwise required by the commissioner,

within a reasonable period of time, as determined by the

commissioner, after requested by the commissioner.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

     (a) Senate Bill No. 826.

     (b) Senate Bill No. 827.

     (c) Senate Bill No. 828.

     (d) Senate Bill No. 829.

     (e) Senate Bill No. 830.

     (f) Senate Bill No. 831.

     (g) Senate Bill No. 833.

     (h) House Bill No. 5287.

     (i) House Bill No. 5288.

     (j) House Bill No. 5289.

     (k) House Bill No. 5290.

     (l) House Bill No. 5291.