January 30, 2008, Introduced by Senators HUNTER, CLARKE and BRATER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 2002 PA 660, entitled
"Consumer mortgage protection act,"
by amending section 4 (MCL 445.1634).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4. (1) A person offering to make or making a mortgage
loan shall not do either of the following:
(a) Charge a fee for a product or service if the product or
service is not actually provided to the customer.
(b) Misrepresent the amount charged by or paid to a third
party for a product or service.
(c) Engage in flipping a home loan. As used in this
subdivision, "flipping" means making a home loan to a borrower that
refinances an existing home loan when the new loan does not have
reasonable, tangible net benefit to the borrower considering all of
the circumstances, including, but not limited to, the terms of both
the new and refinanced loans, the cost of the new loan, and the
borrower's circumstances.
(2) A lender in making a mortgage loan shall not finance as
part of the loan single premium coverage for any credit life,
credit disability, or credit unemployment.
(3) A person, appraiser, or real estate agent shall not make,
directly or indirectly, any false, deceptive, or misleading
statement or representation in connection with a mortgage loan
including, but not limited to, the borrower's ability to qualify
for a mortgage loan or the value of the dwelling that will secure
repayment of the mortgage loan.
(4) A lender shall not insert or change information on an
application for a mortgage loan if the lender knows that the
information is false and misleading and intended to deceive a third
party that the borrower is qualified for the loan when in fact the
third party would not approve the loan without the insertion or
change.
(5) A statement or representation is deceptive or misleading
if it has the capacity to deceive or mislead a borrower or
potential borrower. The commissioner shall consider any of the
following factors in deciding whether a statement or
misrepresentation
representation is deceptive or misleading:
(a) The overall impression that the statement or
representation reasonably creates.
(b) The particular type of audience to which the statement is
directed.
(c) Whether it may be reasonably comprehended by the segment
of the public to which the statement is directed.
(6) A lender shall not condition the payment of an appraisal
upon a predetermined value or the closing of the mortgage loan
which is the basis of the appraisal.
(7) A person shall not directly or indirectly compensate,
coerce, or intimidate an appraiser for the purpose of influencing
the independent judgment of the appraiser with respect to the value
of the dwelling offered as security for repayment of the mortgage
loan.
(8) A mortgage loan note shall not contain blanks regarding
payments, interest rates, maturity date, or amount borrowed to be
filled in after the note is signed by the borrower.