Sec. 2a.
(1) Except as provided in subsection (2), a credit granting institution that requires a mortgagor to maintain property/casualty insurance as a condition to receiving a mortgage loan shall not require the amount of the property/casualty insurance to be greater than the replacement cost of the mortgaged building or buildings.
(2) A credit granting institution may require an amount of property/casualty insurance that is required of the credit granting institution as a condition of a sale, transfer, or assignment of all or part of the mortgage to a third party. This subsection does not require that the credit granting institution anticipate a sale, transfer, or assignment at the time the mortgage loan is made.
History: Add. 1995, Act 214, Imd. Eff. Nov. 29, 1995
Structure Michigan Compiled Laws
Chapter 445 - Trade and Commerce
Act 135 of 1977 - Mortgage Lending Practices (445.1601 - 445.1614)
Section 445.1601 - Definitions.
Section 445.1603 - Lending Policies and Criteria; Loan Application Procedures and Contract Terms.
Section 445.1604 - Advantageous Loan Terms.
Section 445.1605 - Notice to Loan Inquirers or Applicants; Posting; Contents.
Section 445.1606 - Repealed. 2002, Act 692, Eff. Mar. 31, 2003.
Section 445.1607 - Retention of Records and Documents.
Section 445.1609 - Voluntary Mortgage Review Boards; Mandatory Mortgage Review Boards.
Section 445.1611 - Injunction; Damages; Commissioner as Party Plaintiff; Class Actions Prohibited.
Section 445.1612 - Violation; Fine; Costs of Investigation; Proceedings.