Senate strengthens mortgage reform legislation
LANSING—The Michigan Senate today unanimously approved legislation adding further safeguards to the mortgage loan officer registration measures enacted in 2008, said Sen. Randy Richardville, who spearheaded the registration initiative.
“Like the bills we already passed earlier this year, Senate Bills 1552-1555 complement other efforts that have been taken at the federal and state level to curb fraud and reduce foreclosures,” said Sen. Richardville, chair of the Senate Banking and Financial Institutions Committee. “This legislation provides consumers further protection from unscrupulous mortgage loan officers and allows us to keep track of bad actors who move from state to state.”
Under the bills passed today, mortgage loan officers will have to undergo a background check performed by both the Michigan State Police and the FBI, in accordance with federal guidelines also adopted in 2008. The implementation date has been moved from Jan. 1, 2009 to April 1, 2009 to allow for the educational classes and exam requirements for loan officers to be met.
“These bills help reassure potential homebuyers that their mortgage loan officer is highly qualified to conduct mortgage loan transactions. This is one of the biggest, if not the biggest, financial decisions of someone’s life,” said Sen. Richardville.
“I was pleased to work with my colleagues in a bipartisan and bicameral effort once again, as well as the Office of Financial and Insurance Regulation, the Michigan State Police, the Michigan Mortgage Brokers Association and the Michigan Mortgage Lenders Association, to raise the professional standard for Michigan’s mortgage loan officers.”
Senate Bills 1552-1555 will advance to the House of Representatives for consideration.
Posted: Thursday, November 13, 2008
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