reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.15a - Regulatory Loan Contract; Nonperformance by Borrower; Advances by Licensee; Termination of Insurance Upon Reinstatement of Contractual Duties by Borrower.

493.15a Regulatory loan contract; nonperformance by borrower; advances by licensee; termination of insurance upon reinstatement of contractual duties by borrower.
Sec. 15a.
(1) If a regulatory loan contract contains obligations by the borrower to perform certain duties pertaining to insuring or preserving collateral and the licensee, because of the borrower's failure to perform these duties, pays for performance of the duties on behalf of the borrower, the licensee may add the amounts paid to the debt and collect interest at the contract rate on the amounts.
(2) Within 30 days after advancing any sums under this section, the licensee shall notify the borrower in writing of the amount of the sums advanced, any charges with respect to this amount, any revised payment schedule, and a brief description of the services or products paid for by the licensee, including the type and amount of insurance coverages, if applicable.
(3) The licensee shall promptly terminate insurance or other services procured under this section once the borrower provides evidence that the performance of contractual duties have been reinstated.
History:
Add. 2001, Act 270, Imd. Eff. Jan. 11, 2002
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.16 - Repealed. 1978, Act 528, Eff. Mar. 30, 1979.

493.16 Repealed. 1978, Act 528, Eff. Mar. 30, 1979.
Compiler's Notes:
The repealed section pertained to sale or assignment of wages as loans.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.17 - Assignment or Order for Payment of Compensation to Secure Loan Invalid; Validity of Chattel Mortgage or Lien on Household Goods; Married Borrower; Signatures; Written Assent of Spouse.

493.17 Assignment or order for payment of compensation to secure loan invalid; validity of chattel mortgage or lien on household goods; married borrower; signatures; written assent of spouse.
Sec. 17.
(1) An assignment of, or order for payment of, salary, wages, commissions, or other compensation for services, earned or to be earned, given to secure a loan made by a licensee under this act, shall not be valid. A chattel mortgage or other lien on household goods then in the possession and use of the borrower shall not be valid unless it is in writing and signed in person by the borrower.
(2) If the borrower is married, a chattel mortgage or other lien on household goods shall not be valid unless it is signed in person by both husband and wife. The written assent of a spouse under this section shall not be required when husband and wife have been living separate and apart for a period of not less than 5 months before the making of the chattel mortgage or other lien.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.17 ;-- Am. 1980, Act 392, Eff. Mar. 31, 1981 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.18 - Unlicensed Persons; Limitation on Interest, Discount, or Consideration; Applicability of Act to Loans Made in Another State or Country.

493.18 Unlicensed persons; limitation on interest, discount, or consideration; applicability of act to loans made in another state or country.
Sec. 18.
(1) A person, except as authorized by this act, shall not directly or indirectly charge, contract for, or receive an interest, discount, or consideration greater than the lender would be permitted by law to charge if the lender were not licensed under this act upon the loan, use, or forbearance of money, goods, or things in action.
(2) The prohibition specified in subsection (1) applies to a person who or which, by any device, subterfuge, or pretense charges, contracts for, or receives greater interest, consideration, or charges than authorized by this act for the loan, use, or forbearance of money, goods, or things in action or for the loan, use, or sale of credit.
(3) This act does not apply to loans legally made in another state or country by a licensee under a regulatory loan law similar in principle to this act, except that loans made by mail to Michigan residents are subject to this act.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- Am. 1947, Act 130, Eff. Oct. 11, 1947 ;-- CL 1948, 493.18 ;-- Am. 1963, Act 103, Eff. Sept. 6, 1963 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1995, Act 165, Eff. Mar. 28, 1996 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.19 - Violation as Misdemeanor; Penalty.

493.19 Violation as misdemeanor; penalty.
Sec. 19.
(1) A person, including a member, officer, director, agent, or employee of a licensee, who violates or participates in the violation of section 1, 12, 13, 14, or 18 is guilty of a misdemeanor punishable by a fine of not more than $500.00, or imprisonment for not more than 6 months, or both.
(2) A person who makes or collects upon a loan contract in a manner prohibited by this act is guilty of a misdemeanor under section and is subject to the credit reform act.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.19 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1995, Act 165, Eff. Mar. 28, 1996
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.20 - Businesses Exempt From Act.

493.20 Businesses exempt from act.
Sec. 20.
This act shall not apply to any person doing business under and as permitted by any law of this state or of the United States relating to banks, savings banks, industrial banks, trust companies, building and loan associations, or credit unions, nor to any business transacted under any pawnbroker's license.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.20
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.21 - Enforcement of Act; Rules.

493.21 Enforcement of act; rules.
Sec. 21.
The commissioner may promulgate rules that are necessary for the administration and enforcement of this act under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.21 ;-- Am. 1971, Act 168, Eff. Mar. 30, 1972 ;-- Am. 1978, Act 528, Eff. Mar. 30, 1979 ;-- Am. 1991, Act 14, Eff. Oct. 1, 1991 ;-- Am. 1992, Act 71, Imd. Eff. June 2, 1992 ;-- Am. 2001, Act 270, Imd. Eff. Jan. 11, 2002
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Admin Rule:
R 493.1 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.22 - Amendments or Repeals of Act; Impairment of Obligation.

493.22 Amendments or repeals of act; impairment of obligation.
Sec. 22.
This act or any part thereof may be modified, amended, or repealed so as to effect a cancellation or alteration of any license or right of a licensee hereunder, provided that such cancellation or alteration shall not impair or affect the obligation of any pre-existing lawful contract between any licensee and any borrower.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.22
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.23 - Repealed. 1991, Act 14, Eff. Oct. 1, 1991.

493.23 Repealed. 1991, Act 14, Eff. Oct. 1, 1991.
Compiler's Notes:
The repealed section pertained to licensees under former act.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.24 - Review of Decisions and Regulations; Limitations; Method; Jurisdiction of Courts.

493.24 Review of decisions and regulations; limitations; method; jurisdiction of courts.
Sec. 24.
Any applicant under section 4 of this act or any licensee, being dissatisfied with any rule, regulation, order, demand, ruling, or finding (hereinafter in this section referred to as an order) whatsoever, made by the commissioner under and by virtue of the provisions of this act, may, within 30 days from the issuance of such order and the giving of notice thereof as required herein, commence an action in the circuit court in chancery for the county of Ingham, or in the chancery court of the county in which is located the place of business of such licensee or applicant concerning which such rule, regulation, order, demand, ruling or finding was made, against the commissioner as defendant to vacate and set aside such order on the ground that the same is unlawful or unreasonable or not correct as to the facts, or that any regulation or practice fixed in such order is unlawful or unreasonable. In such action the trial shall be de novo and the court shall not be bound by any finding of fact or law on the part of the commissioner, and the burden of proof shall be on the commissioner. The same shall proceed, be tried and determined as other chancery suits and appeal therefrom may be taken by any party to the supreme court in the same manner as from other chancery suits. Any party to such suit may introduce original evidence in addition to the transcript of evidence taken before the commissioner. The said circuit court in chancery is hereby given jurisdiction of such suits and empowered to affirm, modify, vacate, or set aside the order of the commissioner in whole or in part and to make such other order or decree as the court shall decide to be proper and in accordance with the facts and the law. In all actions and proceedings in court arising under this section of this act, all process shall be served and the practice and rules of evidence shall be the same as in actions in equity except as otherwise herein provided.
History:
1939, Act 21, Eff. Sept. 29, 1939 ;-- CL 1948, 493.24
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.25 - Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.

493.25 Repealed. 2001, Act 270, Imd. Eff. Jan. 11, 2002.
Compiler's Notes:
The repealed section pertained to certified copy of order as evidence.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 21 of 1939 - Regulatory Loan Act (493.1 - 493.26) › Section 493.26 - Repealed. 1991, Act 14, Eff. Oct. 1, 1991.

493.26 Repealed. 1991, Act 14, Eff. Oct. 1, 1991.
Compiler's Notes:
The repealed section contained a repealer and saving clause.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.52a-493.52d - Repealed. 2009, Act 77, Eff. July 31, 2010.

493.52a-493.52d Repealed. 2009, Act 77, Eff. July 31, 2010.
Compiler's Notes:
The repealed sections pertained to performance of sevices as secondary mortgage loan officer; information available to public; remuneration; registration; conditions requiring notice.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.53 - Application for License or Registration; Form and Contents.

493.53 Application for license or registration; form and contents.
Sec. 3.
(1) An application for a license or registration under this act shall be in writing, under oath, and in the form prescribed by the commissioner.
(2) The application shall state the name, residence, and business addresses of the applicant, each member if the applicant is a partnership, association, or limited liability company, and of each officer, director, and stockholder if the applicant is a corporation.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.53a - Broker, Lender, or Servicer; Registration With Commissioner; Form.

493.53a Broker, lender, or servicer; registration with commissioner; form.
Sec. 3a.
The following persons shall register with the commissioner on a form prescribed by the commissioner:
(a) A broker, lender, or servicer approved as a seller or servicer by the federal national mortgage association or the federal home loan mortgage corporation.
(b) A broker, lender, or servicer approved as an issuer or servicer by the government national mortgage association.
(c) A broker, lender, or servicer that is licensed under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684, or a registrant under that act if the registrant is a mortgage broker, mortgage lender, or mortgage servicer approved as a seller or servicer by the federal national mortgage association or the federal home loan mortgage corporation, or a mortgage broker, mortgage lender, or mortgage servicer approved as an issuer or servicer by the government national mortgage association.
(d) A broker, lender, or servicer that is a subsidiary or affiliate of a depository financial institution or a depository financial institution holding company if the depository institution does not maintain a main office or a branch office in this state.
History:
Add. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Constitutionality:
In Wachovia Bank v Watters, 431 F 2d 556 (2005), the 6th circuit court of appeals held that the national bank act and implementing federal regulations preempt conflicting Michigan law as to provisions requiring registration before a mortgage lender may conduct business in Michigan, payment of registration and renewal fees, submission of financial statements, and certain investigatory and regulatory powers of the insurance commissioner. (United States Supreme Court granted certiorari June 1, 2006.)
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.54 - Fees.

493.54 Fees.
Sec. 4.
(1) At the time of making an application for a license, the applicant shall pay to the commissioner a fee for investigating the applicant as provided by section 6a.
(2) At the time of making an application for license or registration and annually thereafter, the applicant shall pay an annual operating fee as provided in section 6a.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1992, Act 77, Imd. Eff. June 2, 1992 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Constitutionality:
In Wachovia Bank v Watters, 431 F 2d 556 (2005), the 6th circuit court of appeals held that the national bank act and implementing federal regulations preempt conflicting Michigan law as to provisions requiring registration before a mortgage lender may conduct business in Michigan, payment of registration and renewal fees, submission of financial statements, and certain investigatory and regulatory powers of the insurance commissioner. (United States Supreme Court granted certiorari June 1, 2006.)
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.55 - Investigation; Issuance or Refusal to Issue License.

493.55 Investigation; issuance or refusal to issue license.
Sec. 5.
(1) Upon the filing of an application for a license and the payment of the required fees and the filing of proof of financial responsibility as the commissioner requires, the commissioner shall investigate the facts. If the commissioner finds that the financial responsibility, experience, character, and general fitness of the applicant for a license, and, as applicable, the applicant's shareholders, directors, officers, partners, members, and trustees command the confidence of the community and warrant the belief that the business will be operated lawfully, honestly, fairly, and efficiently as required by this act, the commissioner shall issue to the applicant a license to engage in the business of brokering, making, or servicing secondary mortgage loans under this act.
(2) For an applicant for a registration, the commissioner shall approve the application if the commissioner finds that the applicant meets any 1 of the requirements of section 3a.
(3) A license or registration issued under this section does not approve the use of, or indemnify the licensee or registrant against claims for the improper use of the business name stated in the license.
(4) The commissioner may refuse to issue a license for any reason for which the commissioner may suspend, revoke, or refuse to renew a license under section 11.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.57 - Repealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.

493.57 Repealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.
Compiler's Notes:
The repealed section pertained to duties of commissioner upon refusal to issue license.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.58 - Summary Suspension of License or Registration; Order; Affidavit; Service; Filing Request for Hearing; Duration of License Suspension; Record.

493.58 Summary suspension of license or registration; order; affidavit; service; filing request for hearing; duration of license suspension; record.
Sec. 8.
(1) The commissioner may issue an order summarily suspending a license or registration under section 92 of the administrative procedures act of 1969, 1969 PA 306, MCL 24.292, supported by an affidavit that an imminent threat of financial loss or imminent threat to the public welfare exists. The order to summarily suspend a license or registration shall be served upon the licensee or registrant.
(2) A licensee or registrant upon which an order to summarily suspend its license or registration has been served shall have 20 days after the date of service of the order within which to file with the commissioner a request for a hearing.
(3) A hearing shall be promptly held upon receipt of a request for a hearing filed by a licensee or registrant.
(4) A summary suspension of a license or registration shall continue until the commissioner finds that the imminent threat of financial loss and imminent threat to the public welfare no longer exist.
(5) The record created at the hearing of the summary suspension shall become part of the record on the complaint at a subsequent hearing in a contested case.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1992, Act 77, Imd. Eff. June 2, 1992 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Constitutionality:
In Wachovia Bank v Watters, 431 F 2d 556 (2005), the 6th circuit court of appeals held that the national bank act and implementing federal regulations preempt conflicting Michigan law as to provisions requiring registration before a mortgage lender may conduct business in Michigan, payment of registration and renewal fees, submission of financial statements, and certain investigatory and regulatory powers of the insurance commissioner. (United States Supreme Court granted certiorari June 1, 2006.)
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.59 - Order in Addition to Other Legal Actions.

493.59 Order in addition to other legal actions.
Sec. 9.
A summary suspension order, cease and desist order, or injunctive relief issued or granted in relation to a license or registration shall be in addition to an informal conference, criminal prosecution, or proceeding to deny, revoke, or suspend a license or registration, or any other legal action.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Constitutionality:
In Wachovia Bank v Watters, 431 F 2d 556 (2005), the 6th circuit court of appeals held that the national bank act and implementing federal regulations preempt conflicting Michigan law as to provisions requiring registration before a mortgage lender may conduct business in Michigan, payment of registration and renewal fees, submission of financial statements, and certain investigatory and regulatory powers of the insurance commissioner. (United States Supreme Court granted certiorari June 1, 2006.)
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.60 - Complaint; Forwarding to Licensee or Registrant; Response; Investigation or Administrative Action.

493.60 Complaint; forwarding to licensee or registrant; response; investigation or administrative action.
Sec. 10.
(1) Any person may file a complaint with the commissioner alleging that a licensee or registrant has violated this act or a rule promulgated or an order issued under this act.
(2) The commissioner may forward the complaint to the licensee or registrant against which the complaint is filed.
(3) The commissioner shall request that the licensee or registrant respond to the complainant and provide the commissioner with a copy of the response within a specified period. If the licensee or registrant fails to respond to the complainant within the specified period, or fails to handle the complaint to the satisfaction of the commissioner, the commissioner may commence an investigation or administrative action against the licensee or registrant.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.62 - Contracts or Commitments Made Prior to Suspension or Revocation.

493.62 Contracts or commitments made prior to suspension or revocation.
Sec. 12.
(1) This act does not prevent a person whose license or registration has been suspended or revoked from continuing to service secondary mortgage loans under servicing contracts in existence at the time of the suspension for a period not to exceed 6 months after the date of the entry of the final decision in the contested case suspending or revoking the license or registration.
(2) In the event of a summary suspension or revocation, the commissioner shall have discretion to order the licensee or registrant to cease all activities including the servicing of secondary mortgage loans and the closing of secondary mortgage loans under any commitments to make secondary mortgage loans issued by a person prior to the suspension or revocation.
(3) For an administrative action other than a summary suspension or revocation, this act does not prevent a person whose license or registration has been suspended or revoked from making a secondary mortgage loan under a commitment to make a secondary mortgage loan issued by the person prior to the suspension or revocation. A person who received a commitment issued by a person whose license or registration has been suspended or revoked may, prior to closing the loan, terminate the commitment and receive a refund of all money paid to the person.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.63 - Duration of License or Registration; Reinstatement of Suspended License or Registration; Issuing New License or Registration; Consent Required for Transfer or Assignment; Requirements for Transfer.

493.63 Duration of license or registration; reinstatement of suspended license or registration; issuing new license or registration; consent required for transfer or assignment; requirements for transfer.
Sec. 13.
(1) A license or registration remains in force until the date of expiration or until surrendered, revoked, or suspended under this act. The commissioner may reinstate a suspended license or registration or issue a new license or registration to a licensee or registrant whose license or registration has been revoked if the conditions under which the license or registration was revoked have been corrected and the commissioner is satisfied, as the result of an investigation, that the conditions are not likely to recur.
(2) A person shall not transfer or assign a license or registration without the consent of the commissioner. The sale, transfer, assignment, or conveyance of more than 25% of the outstanding voting stock of a licensee or registrant that is a corporation, or more than 25% of the interest in a licensee or registrant that is a limited liability company or partnership or other unincorporated legal entity is considered a transfer of a license or registration for purposes of this subsection.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997 ;-- Am. 2008, Act 325, Imd. Eff. Dec. 18, 2008 ;-- Am. 2009, Act 77, Eff. July 31, 2010
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.64b - Hearing; Final Decision; Judicial Review; Stay of Commissioner's Order.

493.64b Hearing; final decision; judicial review; stay of commissioner's order.
Sec. 14b.
(1) A hearing under section 14 or 14a shall be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Within 30 days after the commissioner has notified the parties that the case has been submitted to him or her for final decision, the commissioner shall render a decision that shall include findings of fact supporting the decision and serve upon each party to the proceeding a copy of the decision and an order consistent with the decision.
(2) Except for a consent order, a party to the proceeding, or a person affected by an order issued under section 14 or 14a may obtain a judicial review of the order. A consent order may be reviewed as provided under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Except for an order under judicial review, the commissioner may terminate or set aside any order. The commissioner may terminate or set aside an order under judicial review with the permission of the court.
(3) Unless ordered by the court, the commencement of proceedings for judicial review under subsection (2) does not stay the commissioner's order.
History:
Add. 2002, Act 392, Imd. Eff. May 30, 2002
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.64c - Enforcement of Order; Jurisdiction.

493.64c Enforcement of order; jurisdiction.
Sec. 14c.
The commissioner may apply to the circuit court of Ingham county for the enforcement of any outstanding order issued under section 8, 14, or 14a.
History:
Add. 2002, Act 392, Imd. Eff. May 30, 2002
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.64d - Violation as Misdemeanor; Penalty.

493.64d Violation as misdemeanor; penalty.
Sec. 14d.
Any current or former executive officer, director, agent, or control person who violates a final order issued under section 14a is guilty of a misdemeanor punishable by a fine of not more than $5,000.00 or imprisonment for not more than 1 year, or both.
History:
Add. 2002, Act 392, Imd. Eff. May 30, 2002
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.64e - Violation of Order; Exceptions.

493.64e Violation of order; exceptions.
Sec. 14e.
A control person who is subject to an order issued under section 14a and who meets all of the following requirements is not in violation of the order:
(a) The control person shall not in any manner, directly or indirectly, participate in the control of a licensee or registrant after the date the order is issued.
(b) The control person shall within 6 months after the date the order is final transfer any interest the control person owns in a licensee or registrant to an unrelated third party.
History:
Add. 2002, Act 392, Imd. Eff. May 30, 2002
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.65 - Subpoena of Witnesses and Evidence; Oaths and Affirmations; Certain Conduct as Misdemeanor.

493.65 Subpoena of witnesses and evidence; oaths and affirmations; certain conduct as misdemeanor.
Sec. 15.
(1) The commissioner may subpoena witnesses and documents, papers, books, records, and other evidence, in any matter over which the commissioner has jurisdiction, control, or supervision. The commissioner may administer oaths and affirmations to a person whose testimony is required.
(2) A person subpoenaed under this section who willfully refuses or neglects to appear at the time and place named in the subpoena, or to produce books, accounts, records, files, or documents required by the commissioner, or who refuses to be sworn or, unless permitted by law, refuses to answer as a witness, is guilty of a misdemeanor.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.66 - Failure to Testify or Comply With Subpoena; Court Order; Contempt.

493.66 Failure to testify or comply with subpoena; court order; contempt.
Sec. 16.
If a person fails to comply with a subpoena issued by the commissioner or to testify with respect to any matter concerning which the person may be lawfully questioned, the circuit court for Ingham county, on application of the commissioner, may issue an order requiring the attendance of the person and the giving of testimony or production of evidence. The court may punish by contempt a person who fails to obey the court's order.
History:
1981, Act 125, Imd. Eff. July 23, 1981
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.67 - Maintaining Records Relating to Conduct of Business; Availability; Statement of Borrower's Account; Ledger History; Obligation of Servicer; Fee Prohibited.

493.67 Maintaining records relating to conduct of business; availability; statement of borrower's account; ledger history; obligation of servicer; fee prohibited.
Sec. 17.
(1) A licensee or registrant shall maintain books, accounts, records, and documents of the business, as prescribed by the commissioner to enable the commissioner to determine whether the business of the licensee or registrant is conducted as required by this act and the rules promulgated under this act.
(2) The preservation of records by reproduction under the records media act, 1992 PA 116, MCL 24.401 to 24.403, constitutes compliance with this section.
(3) If the books, accounts, records, and documents are not made available in this state, the licensee or registrant shall pay the reasonable travel, lodging, and meal expenses of the examiner as provided in section 6a(6)(d).
(4) If a licensee or registrant that is a servicer, in connection with a secondary mortgage loan, requires a mortgage escrow account, the licensee or registrant shall deliver to the borrower annually a statement of the borrower's account showing the unpaid principal balance of the secondary mortgage loan at the end of the immediately preceding 12-month period, the interest paid during the period, and the amount deposited into escrow and disbursed from escrow during the period.
(5) Within 25 days after receipt of a written request from the borrower, a servicer shall deliver to the borrower a ledger history of the borrower's account showing the date and amount of all payments made or credited to the account for the immediately preceding 12-month period, and the total unpaid balance.
(6) A servicer is not obligated to furnish to the borrower more than 1 annual statement and 1 ledger history upon written request of the borrower in a 12-month period.
(7) A fee shall not be charged the borrower under subsection (4) for the annual statement or for 1 ledger history furnished to the borrower in a 12-month period.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.68 - Documents; Preservation; Other Books, Accounts, Records, and Documents.

493.68 Documents; preservation; other books, accounts, records, and documents.
Sec. 18.
(1) A licensee or registrant shall preserve and keep available for examination by the commissioner each secondary mortgage loan document in its possession or control, including the application, credit report, employment verification, loan disclosure statement, and settlement statement, until the secondary mortgage loan is transferred or assigned, or the expiration of 2 years after the date the secondary mortgage loan is closed, whichever occurs first.
(2) If the secondary mortgage loan is transferred or assigned, the licensee or registrant shall preserve and keep available for examination by the commissioner copies of the promissory note, mortgage, truth-in-lending disclosure statement, and settlement statement in its possession or control for 2 years after the date the secondary mortgage loan is transferred or assigned.
(3) Notwithstanding any other provision of this act, each licensee or registrant shall preserve and keep available for examination by the commissioner all documents pertaining to a rejected application for a secondary mortgage loan for the period of time required by state or federal law.
(4) A licensee or registrant shall preserve all other books, accounts, records, and documents pertaining to the licensee's or registrant's business and keep them available for examination by the commissioner for not less than 2 years after the conclusion of the fiscal year of the licensee or registrant in which the book, account, record, or document was created.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.69 - Repealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.

493.69 Repealed. 1997, Act 91, Imd. Eff. Aug. 1, 1997.
Compiler's Notes:
The repealed section pertained to rules prescribing minimum information required to be shown in books, accounts, and records.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.70 - Making or Offering to Make Secondary Mortgage Loan; Terms and Conditions.

493.70 Making or offering to make secondary mortgage loan; terms and conditions.
Sec. 20.
A licensee or registrant shall not make or offer to make a secondary mortgage loan except on the terms and conditions authorized by this act and the rules promulgated under this act.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997 ;-- Am. 2008, Act 325, Imd. Eff. Dec. 18, 2008 ;-- Am. 2009, Act 77, Eff. July 31, 2010
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.71 - Interest Rate; Limitation; Computation; Prepaid Finance Charge or Fee.

493.71 Interest rate; limitation; computation; prepaid finance charge or fee.
Sec. 21.
(1) A licensee or registrant may charge, contract for, receive, or collect on a secondary mortgage loan an interest rate not exceeding the interest rate permitted by the credit reform act, 1995 PA 162, MCL 445.1851 to 445.1864. Interest on a secondary mortgage loan under this act shall not be added or deducted in advance but shall be computed on the basis of the actual unpaid balance of the principal of the loan on a daily or monthly basis for the time actually outstanding until the loan is paid in full.
(2) This section does not prohibit a lender from offering the borrower, in connection with a secondary mortgage loan that involves other than open-end credit, an option to pay a prepaid finance charge in exchange for a lower contract interest rate or to charge a prepayment fee in the amount permitted under section 1c of 1966 PA 326, MCL 438.31c.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1982, Act 361, Imd. Eff. Dec. 23, 1982 ;-- Am. 1983, Act 43, Imd. Eff. May 12, 1983 ;-- Am. 1983, Act 251, Imd. Eff. Dec. 29, 1983 ;-- Am. 1984, Act 416, Imd. Eff. Dec. 28, 1984 ;-- Am. 1985, Act 155, Imd. Eff. Nov. 15, 1985 ;-- Am. 1995, Act 164, Eff. Mar. 28, 1996 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.73 - Instrument Evidencing or Securing Secondary Mortgage; Contents.

493.73 Instrument evidencing or securing secondary mortgage; contents.
Sec. 23.
An instrument evidencing or securing a secondary mortgage loan shall not contain any of the following:
(a) A power of attorney to confess judgment.
(b) A provision by which the debtor waives rights accruing under this act, any federal law, or law of this state.
(c) An assignment of or order for the payment of all or part of salary, wages, commissions, or other compensation for services earned or to be earned.
(d) A provision to compel, encourage, or induce a borrower to incorporate to evade the provisions of this act.
(e) A provision by which a debtor agrees to pay damages absent a judgment by a court.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1997, Act 91, Imd. Eff. Aug. 1, 1997
Compiler's Notes:
For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Popular Name:
Secondary Mortgage Loan Act
Admin Rule:
R 493.101 et seq. of the Michigan Administrative Code.