Modification to Michigan Consumer Mortgage Protection Act
Michigan’s Consumer Mortgage Protection Act is “an act to prohibit certain lending practices; to require disclosure of certain information for home loans; to prescribe certain duties and obligations of the lender in a home loan transaction; to prescribe the powers and duties of certain state agencies and officials; and to prescribe penalties and provide for remedies.” Recently, the state legislature amended sections 2, 6, and 13 of the Act which go into effect on June 13, 2016.
Section 6 requires lenders to provide mortgage applicants with a copy of the special information booklet outlined in 12 CFR 1024.6. It should be noted that if 12 CFR 1024.6 is ever repealed or amended, the department of insurance and financial services is responsible for drafting a similar document. If such a document is created, they will be required to review it for accuracy on an annual basis. However, “If the document described in this subsection is available to a lender under this subsection at the time a person applies for a mortgage loan, the lender shall provide the applicant with a copy of that document.”
Furthermore, Section 13 establishes that the department of insurance and financial services is responsible for developing at least one financial education program for local government, financial institutions and other interested parties. The program(s) will offer information on managing personal finances and basic information on “saving, borrower, investing and protection against predatory and other fraudulent lending practices.”
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