Mortgage Loan Officer Licensing Legislation Passes House

Last week, the state House passed legislation to strengthen the regulation of the mortgage loan industry in Michigan. This bipartisan, bicameral legislative package provides licensing and education requirements, along with mandatory background checks for mortgage loan officers in Michigan. It also allows the Office of Financial and Insurance Services (OFIS) to keep better track of individuals within the industry as they may move around. Given increased real estate fraud and foreclosures in this state, the passage of these bills is a big step forward in addressing the root of these problems.  

This legislative package represents a compromise from many facets of the real estate community, including banks, credit unions and mortgage brokers. There are a handful of remaining bills that now move on to the Senate, where it is expected that they will pass quickly. The MAR Public Policy staff continues to meet with Senate leadership in stressing the importance of the passage of these bills as a positive step in halting mortgage fraud, while keeping industry standards high.

Let us hope the senate gets it right

It is also important to know that last year (2007) a law was passed that inadvertantly made mortgage brokers subject to the consumer protection act. This would make those brokers subject to treble damages (3 times the settlement amount) Little wonder that the banks and credit unions are now supportive of such licensing.

have a great day

CARL