May 20, 2014, Introduced by Rep. Pettalia and referred to the Committee on Financial Services.
A bill to amend 2009 PA 75, entitled
"Mortgage loan originator licensing act,"
by amending section 5 (MCL 493.135), as amended by 2012 PA 150.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5. (1) Unless specifically exempted under subsection (2),
beginning July 31, 2010, an individual shall not engage in the
business of a mortgage loan originator with respect to any dwelling
located in this state without first obtaining and maintaining
annually a license under this act. Each licensed mortgage loan
originator must register with and maintain a valid unique
identifier issued by the nationwide mortgage licensing system and
registry.
(2) Each of the following is exempt from this act:
(a) A registered mortgage loan originator, when acting for an
entity described in section 3(s)(i)(A), (B), or (C).
(b) An individual who offers or negotiates terms of a
residential mortgage loan with or on behalf of an immediate family
member of that individual.
(c) An individual who offers or negotiates terms of a
residential mortgage loan secured by a dwelling that served as his
or her residence.
(d) A licensed attorney who negotiates the terms of a
residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client, unless the
attorney is compensated by a lender, mortgage broker, or other
mortgage loan originator or by any agent of a lender, mortgage
broker, or other mortgage loan originator.
(3) A loan processor or underwriter who is an independent
contractor may not engage in the activities of a loan processor or
underwriter unless that independent contractor loan processor or
underwriter obtains and maintains a license under subsection (1).
Each independent contractor loan processor or underwriter licensed
as a mortgage loan originator must have and maintain a valid unique
identifier issued by the nationwide mortgage licensing system and
registry.
(4)
The commissioner director may establish licensing rules
and interim procedures for licensing and acceptance of
applications. For previously registered or licensed individuals,
the
commissioner director may establish expedited review and
licensing procedures.
(5) A licensed mortgage loan originator may originate a
residential mortgage loan in this state on behalf of the sponsor of
the licensee or on behalf of a depository institution.
(6) As used in this section, "director" means the director of
the department of insurance and financial services.