Bill Text: MI SB1087 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Financial institutions; loan officers; certain servicer loss mitigation staff; exempt from licensure. Amends sec. 5 of 2009 PA 75 (MCL 493.135).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-12-31 - Assigned Pa 0421'14 With Immediate Effect [SB1087 Detail]
Download: Michigan-2013-SB1087-Engrossed.html
SB-1087, As Passed Senate, November 12, 2014
SENATE BILL No. 1087
September 23, 2014, Introduced by Senator BOOHER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 2009 PA 75, entitled
"Mortgage loan originator licensing act,"
by amending section 5 (MCL 493.135), as amended by 2012 PA 150.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Unless specifically exempted under subsection (2),
beginning July 31, 2010, an individual shall not engage in the
business of a mortgage loan originator with respect to any dwelling
located in this state without first obtaining and maintaining
annually a license under this act. Each licensed mortgage loan
originator must register with and maintain a valid unique
identifier issued by the nationwide mortgage licensing system and
registry.
(2) Each of the following is exempt from this act:
(a) A registered mortgage loan originator, when acting for an
entity described in section 3(s)(i)(A), (B), or (C).
(b) An individual who offers or negotiates terms of a
residential mortgage loan with or on behalf of an immediate family
member of that individual.
(c) An individual who offers or negotiates terms of a
residential mortgage loan secured by a dwelling that served as his
or her residence.
(d) A licensed attorney who negotiates the terms of a
residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client, unless the
attorney is compensated by a lender, mortgage broker, or other
mortgage loan originator or by any agent of a lender, mortgage
broker, or other mortgage loan originator.
(e) An individual who acts as a mortgage servicer, or who is
an employee of a mortgage servicer, who offers or negotiates the
terms of residential mortgage loans for the purpose of
renegotiating, modifying, replacing, or subordinating the principal
of existing residential mortgage loans of which the borrowers are
behind in making their payments, are in default, or have a
reasonable likelihood of falling behind in making payments or
defaulting. However, the exemption from this act under this
subdivision does not apply to an individual who acts as a mortgage
servicer, or is an employee of a mortgage servicer, who offers or
negotiates the terms of a residential mortgage loan transaction
that constitutes a refinancing under 12 CFR 1026.20(a) or that
obligates a different consumer to pay the existing residential
mortgage loan.
(3) A loan processor or underwriter who is an independent
contractor may not engage in the activities of a loan processor or
underwriter unless that independent contractor loan processor or
underwriter obtains and maintains a license under subsection (1).
Each independent contractor loan processor or underwriter licensed
as a mortgage loan originator must have and maintain a valid unique
identifier issued by the nationwide mortgage licensing system and
registry.
(4) The commissioner may establish licensing rules and interim
procedures for licensing and acceptance of applications. For
previously registered or licensed individuals, the commissioner may
establish expedited review and licensing procedures.
