Michigan Laws 493.133 – Definitions
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Terms Used In Michigan Laws 493.133
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Department: means the department of insurance and financial services. See Michigan Laws 493.133
- Depository institution: means that term as defined in section 3 of the federal deposit insurance act, 12 USC 1813, or a credit union. See Michigan Laws 493.133
- 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 493.133Escrow: Money given to a third party to be held for payment until certain conditions are met. Exempt company: means a person that meets all of the following:
(i) Is not required to obtain a license or registration, or is exempt from licensing or registration, under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445. See Michigan Laws 493.133Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances: Individual: means a natural person. See Michigan Laws 493.133 Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC 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:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
(i) Is not an individual engaged solely as a loan processor or underwriter except as otherwise provided in section 5(3). See Michigan Laws 493.133Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money. National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC 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 Originate: means to do any of the following for compensation or gain, or in the expectation of compensation or gain, in connection with a residential mortgage loan:
(i) Take a residential mortgage loan application. See Michigan Laws 493.133Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses. Person: means an individual, corporation, limited liability company, partnership, association, or other legal entity. See Michigan Laws 493.133 Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land. 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 Residential real estate: means any real property located in this state on which a person has constructed or intends to construct a dwelling. See Michigan Laws 493.133 Service: means the collection or remittance for a lender, noteowner, or noteholder or a person's own account of 4 or more installment payments of the principal of, interest of, or an amount placed in escrow under a residential mortgage loan, mortgage servicing agreement, or an agreement with a mortgagor. 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 Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC 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
As used in this act:
(a) “Commissioner” means the director.
(b) “Department” means the department of insurance and financial services.
(c) “Depository institution” means that term as defined in section 3 of the federal deposit insurance act, 12 USC 1813, or a credit union.
(d) “Director” means the director of the department or his or her designee.
(e) “Dwelling” means that term as defined in section 103 of the truth in lending act, 15 USC 1602.
(f) “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.
(ii) Is treated as an employee by the person that engages that individual to originate mortgage loans for compliance with federal income tax laws.
(g) “Exempt company” means a person that meets all of the following:
(i) Is not required to obtain a license or registration, or is exempt from licensing or registration, under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684, the secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, or the consumer financial services act, 1988 PA 161, MCL 487.2051 to 487.2072.
(ii) Has a unique identifier in the nationwide mortgage licensing system and registry.
(iii) Has been approved by the director in the nationwide mortgage licensing system and registry as an exempt company.
(h) “Federal banking agencies” means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.
(i) “Financial licensing acts” means that term as defined in section 2 of the consumer financial services act, 1988 PA 161, MCL 487.2052.
(j) “Immediate family member” means a spouse, child, sibling, parent, grandparent, or grandchild. The term includes stepparents, stepchildren, stepsiblings, and adoptive relationships.
(k) “Individual” means a natural person.
(l) “Licensed mortgage loan originator” means a mortgage loan originator who holds a valid license issued by the director under this act.
(m) “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 445.1651 to 445.1684, the secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, or the consumer financial services act, 1988 PA 161, MCL 487.2051 to 487.2072. For purposes of this subdivision, “clerical or support duties” may include any of the following after an application is received:
(i) The receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan.
(ii) Communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that the communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.
(n) “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).
(ii) Is not a person that only performs real estate brokerage activities and is licensed or registered under the laws of this state, unless the person is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of a lender, mortgage broker, or other mortgage loan originator.
(iii) Is not a person solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 USC 101(53D).
(o) “Mortgage servicer” means a person that directly or indirectly services or offers to service residential mortgage loans.
(p) “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.
(q) “Nontraditional mortgage product” means any mortgage product other than a 30-year fixed rate mortgage.
(r) “Office of financial and insurance regulation” means the department.
(s) “Originate” means to do any of the following for compensation or gain, or in the expectation of compensation or gain, in connection with a residential mortgage loan:
(i) Take a residential mortgage loan application.
(ii) Offer or negotiate terms of a residential mortgage loan.
(t) “Person” means an individual, corporation, limited liability company, partnership, association, or other legal entity.
(u) “Real estate brokerage activity” means an activity that involves offering or providing real estate brokerage services to the public, including, but not limited to, any of the following:
(i) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property.
(ii) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property.
(iii) On behalf of any party, negotiating any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing with respect to that contract.
(iv) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law.
(v) Offering to engage in any activity, or act in any capacity, described in subparagraph (i), (ii), (iii), or (iv).
(v) “Registered mortgage loan originator” means an individual who meets all of the following:
(i) Is a mortgage loan originator and is an employee of any of the following:
(A) A depository institution.
(B) A subsidiary of a depository institution that is owned and controlled by that depository institution and is regulated by a federal banking agency.
(C) An institution regulated by the farm credit administration.
(ii) Is registered with, and maintains a unique identifier through, the nationwide mortgage licensing system and registry.
(w) “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.
(x) “Residential real estate” means any real property located in this state on which a person has constructed or intends to construct a dwelling.
(y) “SAFE act” means the secure and fair enforcement for mortgage licensing act of 2008, 12 USC 5101 to 5117.
(z) “Service” means the collection or remittance for a lender, noteowner, or noteholder or a person’s own account of 4 or more installment payments of the principal of, interest of, or an amount placed in escrow under a residential mortgage loan, mortgage servicing agreement, or an agreement with a mortgagor.
(aa) “Sponsor” means a person that meets all of the following:
(i) Has a unique identifier in the nationwide mortgage licensing system and registry.
(ii) Is approved by the director in the nationwide mortgage licensing system and registry as an exempt company or as a person licensed or registered under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684, the secondary mortgage loan act, 1981 PA 125, MCL 493.51 to 493.81, or the consumer financial services act, 1988 PA 161, MCL 487.2051 to 487.2072.
(iii) Has indicated in the nationwide mortgage licensing system and registry that an individual will act as a mortgage loan originator for that person under that person’s specific license, registration, or status as an exempt company.
(bb) “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry.