Michigan Laws 493.135 – Engaging in business of mortgage loan originator; license required; exemptions; independent contractor loan processor or underwriter; establishment of licensing rules and interim procedures
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Michigan Laws 493.135
- Director: means the director of the department or his or her designee. See Michigan Laws 493.133
- Dwelling: means that term as defined in section 103 of the truth in lending act, 15 USC 1602. See Michigan Laws 493.133
- Employee: means an individual who meets both of the following:
(i) Has an employment relationship acknowledged by that individual and the person that engages that individual to originate mortgage loans. See Michigan Laws 493.133Immediate family member: means a spouse, child, sibling, parent, grandparent, or grandchild. See Michigan Laws 493.133 Individual: means a natural person. See Michigan Laws 493.133 Loan processor or underwriter: means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or designated as exempt from licensing under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445. See Michigan Laws 493.133 Mortgage: The written agreement pledging property to a creditor as collateral for a loan. Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC Mortgage loan originator: means an individual who originates residential mortgage loans and meets all of the following:
(i) Is not an individual engaged solely as a loan processor or underwriter except as otherwise provided in section 5(3). See Michigan Laws 493.133Mortgage servicer: means a person that directly or indirectly services or offers to service residential mortgage loans. See Michigan Laws 493.133 Nationwide mortgage licensing system and registry: means a mortgage licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the licensing and registration of licensed mortgage loan originators. See Michigan Laws 493.133 Residential mortgage loan: means a loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or residential real estate on which a person has constructed or intends to construct a dwelling. See Michigan Laws 493.133 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Unique identifier: means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry. See Michigan Laws 493.133
(1) Unless specifically exempted under subsection (2), beginning July 31, 2010, and except as provided in section 5a and 5b, 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 shall 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(v)(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.
(e) An individual who acts as a mortgage servicer, or who is an employee of a mortgage servicer, who offers or negotiates the terms of residential mortgage loans for the purpose of renegotiating, modifying, replacing, or subordinating the principal of existing residential mortgage loans of which the borrowers are behind in making their payments, are in default, or have a reasonable likelihood of falling behind in making payments or defaulting. The exemption provided under this subdivision does not apply to an individual who acts as a mortgage servicer, or is an employee of a mortgage servicer, who offers or negotiates the terms of a residential mortgage loan transaction that constitutes a refinancing under 12 C.F.R. § 1026.20(a) or that obligates a different consumer to pay the existing residential mortgage loan.
(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 shall have and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.
(4) The director may establish licensing rules and interim procedures for licensing and acceptance of applications. For previously registered or licensed individuals, the director may establish expedited review and licensing procedures.