reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.75 - Violation of Consumer Credit Protection Act as Violation of Act.

493.75 Violation of consumer credit protection act as violation of act.
Sec. 25.
A violation of the consumer credit protection act, Public Law 90-321, 82 Stat. 146, as amended by title VI of Public Law 96-221, 94 Stat. 168 or other applicable federal law is a violation of this act.
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 493.76 - Advertising; Prohibited Conduct.

493.76 Advertising; prohibited conduct.
Sec. 26.
(1) A licensee or registrant shall not, willfully or knowingly, make a false, misleading, or deceptive advertisement regarding secondary mortgage loans or the availability of secondary 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 intent of making loans at those or lower rates, and under the stated conditions, to secondary mortgage loan applicants who meet the standards or qualifications prescribed by the licensee or registrant.
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
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493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.76a - Repealed. 2009. Act 77, Eff. July 31, 2010.

493.76a Repealed. 2009. Act 77, Eff. July 31, 2010.
Compiler's Notes:
The repealed section pertained to registration or license requirements.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.78 - Rules.

493.78 Rules.
Sec. 28.
The commissioner shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to administer and enforce this act.
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.
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 125 of 1981 - The Secondary Mortgage Loan Act (493.51 - 493.81) › Section 493.79 - Construction of Act; Applicability.

493.79 Construction of act; applicability.
Sec. 29.
This act does not apply to a depository financial institution that is subject to other laws of this state, another state, or of the United States regulating the power of the depository financial institution to engage in secondary mortgage loan transactions or upon the conditions and limitations imposed by law upon the exercise of this power. This act does not apply to an affiliate or subsidiary of a depository financial institution or a depository financial institution holding company if the depository institution maintains an office or branch office in this state.
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 493.79a - Applicability of Act to Nonprofit Corporation.

493.79a Applicability of act to nonprofit corporation.
Sec. 29a.
(1) This act does not apply to a nonprofit corporation that makes, brokers, or services mortgage loans in connection with a neighborhood housing program assisted under the neighborhood reinvestment corporation act, title VI of Public Law 95-557, 42 U.S.C. 8101 to 8107.
(2) This act does not apply to a nonprofit corporation that makes or services secondary mortgage loans only in connection with mortgages made under a program described in section 25a(1)(b) and (c) of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1675a, if the commissioner has determined that the nonprofit corporation is exempt from that act under section 25a of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1675a.
History:
Add. 1994, Act 261, Imd. Eff. July 5, 1994 ;-- Am. 1998, Act 372, Imd. Eff. Oct. 20, 1998
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 493.80 - Persons Permitted to Make Secondary Mortgage Loans.

493.80 Persons permitted to make secondary mortgage loans.
Sec. 30.
(1) Except as otherwise provided by this act, a secondary mortgage loan may be made in compliance with this act, and only in conformance with the interest rate limitations of 1966 PA 326, MCL 438.31 to 438.33, by either of the following:
(a) A salesperson acting as an agent for a residential builder, or a residential builder, licensed under article 24 of the occupational code, 1980 PA 299, MCL 339.2401 to 339.2412, when made or negotiated in connection with the sale of a residential structure constructed by that builder.
(b) A real estate broker or real estate salesperson licensed under article 25 of the occupational code, 1980 PA 299, MCL 339.2501 to 339.2518, and engaged in the sale of real estate as a principal vocation, when made or negotiated in connection with a real estate sale where the real estate broker or salesperson affiliated with the broker represents either the buyer or seller.
(2) Except as otherwise provided by this act, a secondary mortgage loan may be made in compliance with this act by a person to an employee of that person provided that the proceeds of the loan are used to assist the employee in meeting his or her housing needs.
History:
1981, Act 125, Imd. Eff. July 23, 1981 ;-- Am. 1984, Act 124, Imd. Eff. June 1, 1984 ;-- 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 493.81 - Powers and Duties of Attorney General.

493.81 Powers and duties of attorney general.
Sec. 31.
The powers and duties of the attorney general provided in this act are in addition to his existing powers and duties provided by statutes and common law, and nothing in this act shall impair or restrict the jurisdiction of any court in any action or proceeding by the attorney general under any other statute or common law.
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.101 - Definitions.

493.101 Definitions.
Sec. 1.
As used in this act:
(a) "Commissioner" means the director of the department of insurance and financial services or his or her authorized representative.
(b) "Licensee" means a person that is licensed under this act.
(c) "Person" means an individual, corporation, limited liability company, partnership, association, or other legal entity.
(d) "Credit card arrangement" means a loan or extension of credit that meets all of the following:
(i) Is unsecured.
(ii) Is made for a personal, family, or household purpose.
(iii) Is made to the holder of a credit card or charge card who is an individual.
(iv) Requires use of a credit card or charge card authorized under this act to access the proceeds of the loan or extension of credit.
(e) "Credit card" or "charge card" means any card or device that is issued by a licensee under a credit card arrangement that allows the cardholder to obtain credit from the card issuer or any other person to purchase or lease property or services, obtain a loan or credit, or for any other purpose.
(f) "Truth in lending act" means the truth in lending act, 15 USC 1601 to 1667f.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984 ;-- Am. 2020, Act 76, Imd. Eff. Apr. 2, 2020
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.102 - Credit Card Arrangement; License Required; Terms and Conditions.

493.102 Credit card arrangement; license required; terms and conditions.
Sec. 2.
(1) Except for a person licensed under the consumer financial services act, a person shall not make or negotiate, or offer to make or negotiate, a credit card arrangement unless that person is licensed as provided in this act.
(2) A licensee shall not make or offer to make a credit card arrangement except on the terms and conditions authorized by this act and the rules promulgated under this act.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984 ;-- Am. 1988, Act 165, Eff. Sept. 1, 1988
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.103 - Application for License; Oath; Form; Contents; Fees; Net Worth Requirements; Rules.

493.103 Application for license; oath; form; contents; fees; net worth requirements; rules.
Sec. 3.
(1) An application for a license 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; if the applicant is a partnership or association, of each member; and if a corporation, of each officer, director, and stockholder. The commissioner may exempt publicly held corporations from the requirement to provide information regarding stockholders. The application shall include other information the commissioner requires.
(3) At the time of making an application, the applicant shall pay to the commissioner an investigation fee and, at the time of application and annually thereafter, an annual license fee as provided in section 7.
(4) Each application for a license shall be accompanied by financial statements, reasonably satisfactory to the commissioner, showing that the applicant's net worth exceeds $1,000,000.00. A licensee shall continue to maintain the stated net worth requirement while engaging in credit card arrangements and the commissioner may subsequently adopt rules establishing a higher net worth requirement to assure safe, sound operation of credit card arrangements authorized by this act.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984 ;-- Am. 1992, Act 75, Imd. Eff. June 2, 1992
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.104 - Investigation; Finding; Issuance of License; Refusal to Issue License; Expiration of License.

493.104 Investigation; finding; issuance of license; refusal to issue license; expiration of license.
Sec. 4.
(1) Upon the filing of an application and the payment of the required fees, the commissioner shall investigate the facts. If the commissioner finds that the financial responsibility, experience, character, and general fitness of the applicant, and of the applicant's members if the applicant is a partnership or association, and of the applicant's officers and directors if the applicant is a corporation, are such as to command the confidence of the community and to warrant belief that the business shall be operated lawfully, honestly, fairly, and efficiently within the purposes of this act, the commissioner shall issue and deliver to the applicant a license to engage in credit card arrangements.
(2) 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 6.
(3) A license expires on December 31 each year.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.105 - Duties of Commissioner Upon Refusal to Issue License.

493.105 Duties of commissioner upon refusal to issue license.
Sec. 5.
If the commissioner refuses to issue a license, the commissioner shall:
(a) Notify the applicant of the denial and of the applicant's right to request a hearing within 10 days.
(b) If the applicant does not request a hearing, return the sum paid as a license fee.
(c) If the applicant requests a hearing, give notice of the grounds for refusal and hold a hearing on the refusal. Within 60 days after the hearing the commissioner shall file a written decision containing his or her findings and conclusions and serve a copy upon the applicant.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.107 - Investigations and Examination of Books, Accounts, Records, and Files; Electronic Data Processing Not Prohibited; Establishment of Annual Fee Schedule; Fees Nonrefundable; Penalty; Disposition and Use of Fees and Expenses; Action for Recovery of Fees or Expenses.

493.107 Investigations and examination of books, accounts, records, and files; electronic data processing not prohibited; establishment of annual fee schedule; fees nonrefundable; penalty; disposition and use of fees and expenses; action for recovery of fees or expenses.
Sec. 7.
(1) The commissioner may, at any time, make necessary investigations and examine the books, accounts, records, and files of the licensee. This section shall not be construed to prohibit keeping of records by electronic data processing methods. A licensee shall pay an examination fee for examination of its records conducted by the commissioner as provided by this section. The examination fee shall be invoiced upon the completion of the examination and is due and payable upon receipt of the invoice by the licensee. A licensee is not required to pay more than 1 examination fee in a calendar year.
(2) The commissioner shall annually establish the schedule of fees sufficient to pay the bureau's costs of administering this act. The fees are as follows:
(a) For the investigation of an applicant for a license, not less than $200.00 or more than $600.00.
(b) For the application and annual renewal of a license, not less than $300.00 or more than $800.00.
(c) For amending a license, not less than $20.00 or more than $75.00.
(d) For examination of the licensee, not less than $40.00 or more than $70.00 per hour for each examiner involved in an examination. In addition, a licensee shall pay the actual travel and lodging expenses incurred by bureau employees who travel out of Michigan to examine the records of the licensee.
(3) Fees received pursuant to this act are not refundable.
(4) A license renewal fee paid after December 31 is subject to a penalty of $25.00 for each day the fee is delinquent or $1,000.00, whichever is less.
(5) Money received under this act shall be paid into the state treasury to the credit of the financial institutions bureau to be used only for the operation of the financial institutions bureau.
(6) If any fees or expenses provided for under this act are not paid when required, the attorney general may maintain an action against the delinquent licensee for the recovery of the fees or expenses together with interest and costs.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984 ;-- Am. 1992, Act 75, Imd. Eff. June 2, 1992
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.108 - Subpoena of Witnesses and Evidence; Oaths and Affirmations; Noncompliance; Order; Contempt.

493.108 Subpoena of witnesses and evidence; oaths and affirmations; noncompliance; order; contempt.
Sec. 8.
(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) 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:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.109 - Books, Accounts, and Records; Maintenance, Preservation, and Availability; Audit; Cost.

493.109 Books, accounts, and records; maintenance, preservation, and availability; audit; cost.
Sec. 9.
(1) A licensee shall maintain records relating to all transactions under this act so that the commissioner may enforce full compliance with this act. Books and accounts kept at the licensee's principal place of business shall be made available to the commissioner upon request or the licensee shall pay for an examiner to go to the place where the records are kept.
(2) The books, accounts, and records of the licensee shall be preserved and kept available for not less than 1 year after making the final entry on any loan recorded in the books, accounts, or records. The commissioner may for reasonable cause order an independent audit of the books and records of a licensee and the cost of the audit shall be an expense of the licensee.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.110 - Maximum Interest; Computation; Fee; Offer of Loan or Credit in Connection With Other Accounts, Services, or Similar Agreements; Prohibited Conditions.

493.110 Maximum interest; computation; fee; offer of loan or credit in connection with other accounts, services, or similar agreements; prohibited conditions.
Sec. 10.
(1) On a loan made or credit extended pursuant to a credit card arrangement, a licensee may collect interest not to exceed 1.5% of the unpaid balance per month. The interest shall not be precomputed but computed from time to time on the basis of the unpaid balances. In addition to collecting the interest permitted by this subsection, a licensee may assess a fee for the privilege of having a credit card or charge card if the fee is not computed as a percentage of the unpaid balance.
(2) A loan made or credit extended pursuant to a credit card arrangement authorized by this act may be offered in connection with other accounts, services, or other similar agreements not regulated by this act or any other applicable statute. A licensee may offer for sale and finance credit life insurance or credit accident and health insurance as defined in the credit insurance act, Act No. 173 of the Public Acts of 1958, being sections 550.601 to 550.624 of the Michigan Compiled Laws, or any other insurance pursuant to the insurance code of 1956, Act No. 218 of the Public Acts of 1956, being sections 500.100 to 500.8302 of the Michigan Compiled Laws.
(3) The making of a loan or extension of credit pursuant to a credit card arrangement shall not be conditioned on the requirement that insurance as described in subsection (2) be obtained or that any other goods or services be purchased as a condition of the privilege of obtaining a credit card or charge card.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984 ;-- Am. 1987, Act 171, Imd. Eff. Nov. 16, 1987 ;-- Am. 1994, Act 386, Eff. Mar. 30, 1995
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.111 - Truth in Lending Act; Disclosures, Information, and Notices; Applicability.

493.111 Truth in lending act; disclosures, information, and notices; applicability.
Sec. 11.
(1) A licensee shall make or give to the consumer the disclosures, information, and notices required by the truth in lending act for a credit card arrangement that is governed by this act.
(2) To the extent that the truth in lending act does not impose duties or obligations upon a person for an account established for personal, household, or family purposes in a credit card arrangement that is governed by this act, the person shall make or give to the consumer disclosures, information, and notices in accordance with the federal truth in lending act with respect to the credit transaction.
(3) The truth in lending act shall apply to a credit transaction for which this act authorizes the collection of charges or interest notwithstanding its inclusion in a class of transactions within this state which, by regulation of the board of governors of the federal reserve system, is exempt from the truth in lending act.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.112 - Wilful and Intentional Violation as Misdemeanor; Conduct Barring Recovery and Entitling Consumer to Attorney Fees and Court Costs; Authorized Actions.

493.112 Wilful and intentional violation as misdemeanor; conduct barring recovery and entitling consumer to attorney fees and court costs; authorized actions.
Sec. 12.
(1) Any licensee who wilfully and intentionally violates this act shall be guilty of a misdemeanor.
(2) Any licensee who enters into a credit card arrangement which does not comply with sections 10 and 11 or who violates section 10 or 11, except as a result of accidental or bona fide error, is barred from the recovery of any interest or other charges, attorney fees, or court costs and the consumer shall be entitled to recover reasonable attorney fees and court costs from the licensee.
(3) Whether or not he or she seeks damages or has an adequate remedy at law, a person, a county prosecutor, or the attorney general may bring an action to:
(a) Obtain a declaratory judgment that a method, act, or practice is a violation of this act.
(b) Enjoin in accordance with the principal of equity a person who is engaging or is about to engage in a method, act, or practice which violates this act.
(c) Except as limited by subdivision (d), recover actual damages resulting from a violation of this act, or $250.00, whichever is greater, together with reasonable attorneys' fees and the costs of bringing the action. Recovery in class actions shall be limited to actual damages without attorneys' fees and the cost of bringing the action.
(d) If the licensee establishes by a preponderance of the evidence that the failure to comply with sections 10 and 11 or the violation of section 10 or 11 was not wilful and intentional, the amount recovered pursuant to subdivision (c) shall not exceed actual damages.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.113 - Rules.

493.113 Rules.
Sec. 13.
The commissioner may promulgate rules pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.315 of the Michigan Compiled Laws, as necessary for the administration and enforcement of this act.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 379 of 1984 - Credit Card Arrangements (493.101 - 493.114) › Section 493.114 - Exemptions; Credit Card or Charge Card Issued Prior to Effective Date of Act.

493.114 Exemptions; credit card or charge card issued prior to effective date of act.
Sec. 14.
(1) A state or national bank, state or federal savings and loan association, state or federal credit union, or a retail seller or other creditor under Act No. 224 of the Public Acts of 1966, being sections 445.851 to 445.873 of the Michigan Compiled Laws, shall not be subject to the provisions of this act except that, to the extent such a lender is authorized by law to use the rate authority provided in this act and uses the rate authority provided in section 10, the lender shall also comply with the other provisions of section 10 and with section 11.
(2) A person holding a credit card or charge card issued prior to the effective date of this act may continue to use the credit card or charge card according to the terms of the contract until modified as permitted under this act and shall continue to be liable for loans or credit extended pursuant to any such contract.
History:
1984, Act 379, Imd. Eff. Dec. 28, 1984
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 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.131 - Short Title.

493.131 Short title.
Sec. 1.
This act shall be known and may be cited as the "mortgage loan originator licensing act".
History:
2009, Act 75, Eff. July 31, 2009
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.135b - Out of State License; Temporary Authority; Requirements; Time Period; "State" Defined.

493.135b Out of state license; temporary authority; requirements; time period; "state" defined.
Sec. 5b.
(1) An individual who is a mortgage loan originator licensed in another state shall have temporary authority to act as a mortgage loan originator in this state for the period described in subsection (2) without first obtaining a license under this act if all of the following apply:
(a) The individual meets the requirements listed in section 5a(1)(a) to (g), as determined by the department.
(b) The individual was licensed in another state during the 30-day period immediately preceding the date on which the information required under section 7 is submitted.
(2) The period of temporary authority as provided in subsection (1) begins on the date on which the individual submits the information required under section 7 and the fee required under section 19, and has met the applicable surety bond requirement described in section 29, and ends on the earliest of the following dates:
(a) The date on which the individual withdraws the application submitted under section 7.
(b) The date on which the director denies, or issues a notice of intent to deny, the application.
(c) The date on which the director approves the application.
(d) The date that is 120 days after the date on which the individual submits the application, if the application is listed on the nationwide mortgage licensing system and registry as incomplete.
(3) As used in this section, "state" means any state of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
History:
Add. 2019, Act 141, Imd. Eff. Dec. 5, 2019
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.135c - Temporary Authority; Subject to Laws of This State.

493.135c Temporary authority; subject to laws of this state.
Sec. 5c.
With respect to the temporary authority authorized under sections 5a and 5b, both of the following apply:
(a) A person employing an individual who has the temporary authority described under section 5a or 5b to act as a mortgage loan originator in this state is subject to the applicable law of this state to the same extent as if that individual is a licensed mortgage loan originator.
(b) An individual who has the temporary authority described under section 5a or 5b to act as a mortgage loan originator in this state and who engages in residential mortgage loan origination activities is subject to the applicable law of this state to the extent as if that individual is a licensed mortgage loan originator.
History:
Add. 2019, Act 141, Imd. Eff. Dec. 5, 2019
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.139 - Issuance of Mortgage Loan Originator License; Findings; Conviction.

493.139 Issuance of mortgage loan originator license; findings; conviction.
Sec. 9.
(1) The commissioner shall not issue a mortgage loan originator license unless the commissioner makes at a minimum the following findings:
(a) The applicant is not subject to a prohibition order issued by the commissioner under section 27 or under any of the financial licensing acts.
(b) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that the commissioner shall not consider a revocation that is formally vacated as a revocation for purposes of this subdivision.
(c) Subject to subsection (2), the applicant has not been convicted of, or pled guilty or no contest to, any of the following in a domestic, foreign, or military court:
(i) Within the 10-year period preceding the date of the license application, a felony other than a felony described in subparagraph (ii).
(ii) At any time preceding the date of the license application, any felony or misdemeanor involving fraud, dishonesty, or a breach of trust, money laundering, embezzlement, forgery, a financial transaction, or securities.
(d) The applicant has demonstrated financial responsibility, character, and general fitness that commands the confidence of the community and warrants a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this act.
(e) The applicant has completed the prelicensing education requirement described in section 11.
(f) The applicant has passed a written test that meets the test requirement described in section 13.
(g) The applicant has met the surety bond requirement described in section 29.
(h) The applicant has a sponsor in the nationwide mortgage licensing system and registry that is approved by the commissioner.
(2) The commissioner shall not consider a conviction for which a pardon was granted a conviction for purposes of subsection (1)(c).
History:
2009, Act 75, Eff. July 31, 2009 ;-- Am. 2012, Act 150, Imd. Eff. May 30, 2012
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.141 - Prelicensing Education Requirements.

493.141 Prelicensing education requirements.
Sec. 11.
(1) To meet the prelicensing education requirement under section 9(1)(e), except as provided in subsection (6), the applicant shall complete at least 20 hours of education approved under subsection (2), including at least all of the following:
(a) Three hours of federal law and regulations.
(b) Three hours of ethics, including instruction on fraud, consumer protection, and fair lending issues.
(c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
(2) Only prelicensing education courses reviewed and approved by the nationwide mortgage licensing system and registry may be used to satisfy the requirements of subsection (1). Review and approval of a prelicensing education course shall include review and approval of the course provider.
(3) If approved by the nationwide mortgage licensing system and registry, a prelicensing education course may be provided by the employer of the applicant, an entity that is affiliated with the applicant by an agency contract, or a subsidiary or affiliate of that employer or entity.
(4) Prelicensing education may be offered in a classroom, online, or by any other means approved by the nationwide mortgage licensing system and registry.
(5) If a person completes any prelicensing education requirements described in subsection (1)(a), (b), or (c) that are approved by the nationwide mortgage licensing system and registry for any state, the commissioner shall accept those hours of education as credit toward completion of the prelicensing education requirements under this section.
(6) For an application for a mortgage loan originator license submitted before July 31, 2010, completion of the classroom instruction requirement described in section 2a(4)(d) of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1652a, or section 2a(4)(d) of the secondary mortgage loan act, 1981 PA 125, MCL 493.52a, satisfies the prelicensing education requirement described in subsection (1). An applicant described in this subsection shall provide proof in the form of a certificate of completion or other evidence acceptable to the commissioner.
(7) If an unlicensed individual who formerly held a license issued under this act applies for a new license under this act, he or she must prove that he or she completed all of the continuing education requirements of section 17 for the year in which the previous license was last held to be eligible for a new or renewed license.
History:
2009, Act 75, Eff. July 31, 2009
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.143 - Qualified Written Test.

493.143 Qualified written test.
Sec. 13.
(1) To meet the written test requirement under section 9(1)(f), except as provided in subsection (5), an individual shall pass a qualified written test developed by the nationwide mortgage licensing system and registry and administered by a test provider approved by the nationwide mortgage licensing system and registry based on reasonable standards.
(2) A written test is not considered a qualified written test for purposes of subsection (1) unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including all of the following:
(a) Ethics.
(b) Federal law and regulation pertaining to mortgage origination and to mortgage lending, including, but not limited to, fraud, consumer protection, and fair lending issues and the nontraditional mortgage marketplace.
(c) State law and regulation pertaining to mortgage origination and to mortgage lending, including, but not limited to, fraud, consumer protection, and fair lending issues and the nontraditional mortgage marketplace.
(3) If the test provider is approved by the nationwide mortgage licensing system and registry, the test provider may provide a test at the location of the employer of the applicant, the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(4) All of the following apply to a test under this section:
(a) An individual is not considered to have passed a qualified written test unless the individual achieves a test score of 75% or more correct answers to questions.
(b) An individual may retake a test 3 consecutive times, if each consecutive retaking occurs at least 30 days after the preceding test.
(c) If an individual fails 3 consecutive tests, the individual must wait at least 6 months before taking the test again.
(d) If an unlicensed individual who formerly held a license issued under this act applies for a new license under this act, he or she must retake the test if it has been at least 5 years since he or she last held a valid license under this act.
(5) If an applicant for a mortgage loan originator license has met the testing requirement described in section 2a(4)(e) of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1652a, or section 2a(4)(e) of the secondary mortgage loan act, 1981 PA 125, MCL 493.52a, in the 5-year period preceding the date of the application, and provides evidence acceptable to the commissioner that he or she met that testing requirement, the applicant is considered to have met that part of the written test requirement under section 9(1)(f) applicable to the state law and regulation described in subsection (2)(c).
History:
2009, Act 75, Eff. July 31, 2009
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.145 - Annual Renewal; Expiration; Reinstatement.

493.145 Annual renewal; expiration; reinstatement.
Sec. 15.
(1) The commissioner shall annually renew the license of a licensed mortgage loan originator if all of the following are met before his or her current license expires:
(a) The mortgage loan originator continues to meet the requirements for license issuance under section 9(1)(a) to (g).
(b) The mortgage loan originator has satisfied the annual continuing education requirements described in section 17.
(c) The mortgage loan originator has paid the fee required under section 19.
(2) If a mortgage loan originator fails to satisfy the requirements of subsection (1) for renewal of his or her license, the license shall expire. The commissioner may adopt procedures for the reinstatement of expired licenses consistent with the standards established by the nationwide mortgage licensing system and registry.
History:
2009, Act 75, Eff. July 31, 2009 ;-- Am. 2012, Act 150, Imd. Eff. May 30, 2012
2023 Michigan Compiled Laws › Chapter 493 - Regulatory Loans › Act 75 of 2009 - Mortgage Loan Originator Licensing Act (493.131 - 493.171) › Section 493.147 - Continuing Education Requirements.

493.147 Continuing education requirements.
Sec. 17.
(1) To meet the annual continuing education requirements described in section 15(1)(b), a licensed mortgage loan originator shall complete at least 8 hours of education approved under subsection (2), including at least all of the following:
(a) Three hours of federal law and regulations.
(b) Two hours of ethics, including instruction on fraud, consumer protection, and fair lending issues.
(c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
(2) Only continuing education courses reviewed and approved by the nationwide mortgage licensing system and registry, based on reasonable standards, may be used to satisfy the requirements of subsection (1). Review and approval of a continuing education course shall include review and approval of the course provider.
(3) If approved by the nationwide mortgage licensing system and registry, a continuing education course may be provided by the employer of the mortgage loan originator, an entity that is affiliated with the mortgage loan originator by an agency contract, or a subsidiary or affiliate of that employer or entity.
(4) Continuing education may be offered in a classroom, online, or by any other means approved by the nationwide mortgage licensing system and registry.
(5) Both of the following apply to the continuing education requirements of a licensed mortgage loan originator:
(a) Except for section 15(2) and subsection (9), he or she may only receive credit for a continuing education course in the year in which the course is taken.
(b) He or she may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
(6) A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of 2 hours credit for every 1 hour taught.
(7) If a person successfully completes any continuing education requirements described in subsection (1)(a), (b), or (c) that are approved by the nationwide mortgage licensing system and registry for any state, the commissioner shall accept those hours of education as credit toward completion of the continuing education requirements under this section.
(8) If an unlicensed individual who formerly held a license issued under this act applies for a new license under this act, he or she must complete the continuing education requirements for the last year in which the license was held to be eligible for a new or renewed license.
(9) The commissioner by rule may establish a procedure by which an individual who meets the requirements of section 15(1)(a) and (c) may make up any deficiency in continuing education.
History:
2009, Act 75, Eff. July 31, 2009