Act No. 295

Public Acts of 2012

Approved by the Governor

August 1, 2012

Filed with the Secretary of State

August 1, 2012

EFFECTIVE DATE: August 1, 2012

STATE OF MICHIGAN

96TH LEGISLATURE

REGULAR SESSION OF 2012

Introduced by Senators Casperson, Green and Booher

ENROLLED SENATE BILL No. 1160

AN ACT 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).

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor