SB-0830, As Passed Senate, November 6, 2007

SUBSTITUTE FOR

SENATE BILL NO. 830

     A bill to amend 1987 PA 173, entitled

"Mortgage brokers, lenders, and servicers licensing act,"

by amending section 8 (MCL 445.1658), as amended by 1996 PA 210.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 8. (1) At the time of making an initial application for a

license under this act, and at the time of making the first

application for a license after the suspension or revocation of a

license, the an applicant for licensure under this act shall pay to

the commissioner a fee for investigating the applicant and the

minimum annual operating fee established by the commissioner under

in subsection (3). To renew a license that has not been is not

suspended or revoked, the applicant shall only pay to the

commissioner the annual operating fee established in subsection

(3). At the time of filing a registration or a renewal of a

registration, a registrant shall pay to the commissioner an annual

operating fee as provided by established in subsection (3).

     (2) If the an initial or renewed license or registration as

provided described in subsection (1) would will have an effective

date within 6 months of the expiration date provided for described

in section 7, the initial or renewal annual operating fee for that

license or registration shall be is 1/2 of the annual operating

fee.

     (3) The commissioner shall annually establish the a schedule

of fees that are sufficient to pay, but not to exceed, the bureau's

office of financial and insurance services' reasonably anticipated

costs of administering and enforcing this act. The Subject to

subsection (2), the fees are as follows:

     (a) For the investigation of an applicant for a license, a fee

of not less than $400.00 or more than $1,000.00.

     (b) Except as set forth in subdivision (c), a licensee or

registrant annually shall pay an operating fee based upon the

number of closed mortgage loans the licensee or registrant brokered

to other parties, the number of mortgage loans closed by the

licensee or registrant during the previous calendar year, and the

dollar volume of loans serviced by the licensee or registrant as of

December 31 of the previous calendar year. The In the 1-year period

beginning July 2, 1996, the operating fee during the first year

after enactment of this amendatory language shall be not less than

$250.00 and not more than $2,500.00. Thereafter Beginning July 2,

1997, in the discretion of the commissioner, subject to the

limitation set forth in this subsection, the commissioner may

increase the maximum operating fee may be increased at an annual

rate of not more than 10% in the second, third, and fourth years

following enactment 1-year periods after the 1-year period

beginning July 2, 1996, and in the fifth and subsequent years, at

an annual rate of not more than the annual increase for the

immediately preceding 12-month period in the Detroit consumer price

index as reported by the United States department of labor. For

purposes of this subdivision, "mortgage loan" includes only

mortgage loans subject to this act.

     (c) For amending or reissuing a license, or registration, or

loan officer registration, a fee of not less than $50.00 $15.00 or

more than $200.00.

     (d) A licensee or registrant shall pay the actual travel,

lodging, and meal expenses incurred by bureau employees of the

office of financial and insurance services who travel out of state

to examine the records of the licensee or investigate the licensee

or registrant and the cost of independent investigators employed

under section 20(1)(e).

     (e) A loan officer registrant shall pay an annual fee

established by the commissioner. For purposes of this subdivision,

the commissioner shall establish an amount for the annual fee that

is sufficient to defray the estimated cost of administering and

enforcing the loan officer registration provisions of this act.

     (4) Fees received pursuant to under this act are not

refundable.

     (5) If any fees or penalties provided for in this act are not

paid when required, the attorney general may maintain an action

against the delinquent licensee or registrant for the recovery of

the fees or penalties together with interest and costs.

     (6) A licensee or registrant who fails to submit to the

commissioner a report required by under section 7 or section 21 is

subject to a penalty of $25.00 for each day the report is

delinquent or $1,000.00, whichever is less.

     (7) A licensee or registrant whose license or registration

renewal fee is not received on or before June 30 is subject to a

penalty of $25.00 for each day the fee is delinquent or $1,000.00,

whichever is less.

     (8) Money received under this act shall be deposited in the

state treasury and credited to the financial institutions bureau to

be used only for the operation of the financial institutions

bureau. The department of treasury shall establish and administer a

restricted account in the general fund named the MBLSLA fund. The

department of treasury shall credit to the account all fees

collected under this act or under the commissioner’s authority

under this act and money appropriated or received from any source.

The department of treasury shall use the money in the account only

to provide money to the commissioner, to administer and enforce

this act and other costs associated with the commissioner's

regulatory obligations. Money in the account at the end of a state

fiscal year shall not revert to the general fund but shall be

carried over in the account to the next state fiscal year.

     (9) The annual operating fee set by the commissioner under

subsection (3)(b) shall be based upon information in reports filed

under section 21.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

     (a) Senate Bill No. 826.

     (b) Senate Bill No. 827.

     (c) Senate Bill No. 828.

     (d) Senate Bill No. 829.

     (e) Senate Bill No. 831.

     (f) Senate Bill No. 832.

     (g) Senate Bill No. 833.

     (h) House Bill No. 5287.

     (i) House Bill No. 5288.

     (j) House Bill No. 5289.

     (k) House Bill No. 5290.

     (l) House Bill No. 5291.