November 9, 2010, Introduced by Rep. Griffin and referred to the Committee on Banking and Financial Services.
A bill to provide education and counseling for the people of
this state who are facing the foreclosure or forfeiture of
mortgages or land contracts of their homes; to impose a fee on the
transfer of certain real property to provide for the education and
counseling; to require the establishment of funds by the counties
in this state; to provide for the powers and duties of certain
state and local governmental officers and entities; and to repeal
acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"homeowner education fund act".
Sec. 3. (1) Except as provided in subsection (3), the county
register of deeds shall collect a fee of $4.00 for recording any
instrument. The fee shall be paid when the instrument is given to
the register of deeds to be recorded. The fee is in addition to any
other fees or charges required by law for the recording of
instruments.
(2) The register of deeds shall deposit a fee collected under
subsection (1) within 15 days after collection in the county
homeowner education fund established under section 5, except that
the register of deeds may retain not more than 1-1/2% of each fee
collected under subsection (1) to cover the costs of administering
this section.
(3) The fee imposed under subsection (1) does not apply to any
of the following:
(a) An instrument filed or recorded by an agency of this state
under the state tax lien registration act, 1968 PA 203, MCL 211.681
to 211.687.
(b) A lien or discharge of lien under section 15 of the
Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.15.
(c) An instrument filed or recorded by an agency of the
federal government under the uniform federal lien registration act,
1983 PA 102, MCL 211.661 to 211.668.
(d) An instrument recorded under the uniform commercial code,
1962 PA 174, MCL 440.1101 to 440.11102.
(e) An instrument recorded by a foreclosing governmental unit
as required under sections 78 to 78o of the general property tax
act, 1893 PA 206, MCL 211.78 to 211.78o.
Sec. 5. (1) Each county treasurer shall establish a fund to be
known as the county homeowner education fund. The fund shall be
established as an interest bearing account, and interest earned
shall be credited to the account to be used as provided in this
act. The treasurer shall accept money from the fees imposed under
section 3 and any other source for deposit into the fund.
(2) A county may expend up to 1-1/2% of each fee deposited in
the county homeowner education fund to the extent necessary to pay
administrative expenses related to the fund.
(3) The balance of money in the county homeowner education
fund after payment of administrative expenses under subsection (2)
shall be expended only as provided under section 7.
Sec. 7. A county board of commissioners shall expend money in
the county homeowner education fund established under section 5 by
distributing the money to agencies that provide housing counseling,
are approved by the United States department of housing and urban
development or the Michigan state housing development authority,
and serve residents of the county. An agency that receives money
under this section shall use the money to counsel homeowners to
whom either of the following applies:
(a) The homeowner has mortgaged the home or is purchasing the
home on a land contract and the mortgage or land contract is being
foreclosed or foreclosure is being threatened.
(b) The homeowner is purchasing the home on a land contract
and the land contract is being forfeited or forfeiture is being
threatened.
Sec. 9. This act is repealed effective 10 years after the
effective date of this act.