SB-1160, As Passed Senate, July 18, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1160

     A bill to create a fund to receive money from mortgage loan

servicing companies paid pursuant to certain consent judgments in

actions for mortgage loan servicing and foreclosure abuses; to

provide for the expenditure of revenue in the fund consistent with

the consent judgments; and to provide for the powers and duties of

certain state governmental officers and entities.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"homeowner protection fund act".

     Sec. 2. (1) The homeowner protection fund is created in the

state treasury. The state treasurer shall be the administrator of

the fund. Except for auditing purposes, the state treasurer shall

administer the fund in consultation with the department of the

attorney general. The state treasurer may receive money or other

assets from any source for deposit into the fund. The state

treasurer shall receive for deposit into the fund money allocated

to this state from the April 4, 2012 consent judgments affecting

the 5 largest defendant mortgage loan servicers in United States v

Bank of America Corp, No. 12-0361-RMC (United States District Court

for the District of Columbia). The state treasurer shall direct the

investment of the fund. The state treasurer shall credit to the

fund interest and earnings from fund investments. Money in the fund

at the close of the fiscal year shall remain in the fund and shall

not lapse to the general fund.

     (2) Money in the fund shall be expended, upon appropriation,

in a manner and for purposes consistent with the consent judgments

referred to in subsection (1).