Sec. 23.
(1) A licensee or registrant may require a borrower to pay reasonable and necessary charges which are the actual expenses incurred by the licensee or registrant in connection with the making, closing, disbursing, extending, readjusting, or renewing of a mortgage loan and a loan processing fee. The charges shall be in addition to interest authorized by law, and are not a part of the interest collected or agreed to be paid on the mortgage loan within the meaning of the law of this state which limits the rate of interest which may be exacted in a transaction. The charges shall be paid only once by the borrower to the licensee or registrant. This section is not intended to override the federal preemption of state usury laws contained in the depository institutions deregulation and monetary control act of 1980, Public Law 96-221.
(2) A licensee or registrant which assesses or accepts a fee to guarantee a specified rate of interest on a mortgage loan shall specify the terms and conditions of the guarantee in writing. The terms and conditions of the guarantee shall not extend beyond the expiration of the guarantee unless extended in writing by all the parties.
History: 1987, Act 173, Imd. Eff. Nov. 18, 1987 ;-- Am. 1996, Act 210, Imd. Eff. May 22, 1996 Compiler's Notes: For transfer of authority, powers, duties, functions, and responsibility of the financial institutions bureau and the commissioner of the financial institutions bureau to the commissioner of the office of financial and insurance services and the office of financial and insurance services by type III transfer, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.
Structure Michigan Compiled Laws
Chapter 445 - Trade and Commerce
Act 173 of 1987 - Mortgage Brokers, Lenders, and Servicers Licensing Act (445.1651 - 445.1684)
Section 445.1651 - Short Title.
Section 445.1651a - Definitions.
Section 445.1652a-445.1652c - Repealed. 2009, Act 76, Eff. July 31, 2010.
Section 445.1654 - Proof of Financial Responsibility.
Section 445.1655 - Minimum Net Worth.
Section 445.1659 - Transfer or Assignment of License or Registration.
Section 445.1661 - Powers of Commissioner Generally.
Section 445.1663 - Complaint; Investigation; Federal Regulatory Authority.
Section 445.1664 - Provisions Applicable to Investigation.
Section 445.1666 - Cease and Desist Order; Hearing; Violation; Injunction.
Section 445.1667 - Remedies Cumulative.
Section 445.1668a - Fraud; Prohibition; Notice; Hearing; Order.
Section 445.1668b - Hearing; Final Decision; Judicial Review; Effect of Review on Order.
Section 445.1668c - Enforcement of Order; Jurisdiction.
Section 445.1668d - Violation as Misdemeanor; Penalty.
Section 445.1668e - Violation of Order; Exceptions.
Section 445.1672 - Violations Generally.
Section 445.1672a - Mortgage Loans; Prohibited Advertising.
Section 445.1672b - Repealed. 2009, Act 76, Eff. July 31, 2010.
Section 445.1673 - Reasonable and Necessary Charges; Terms and Conditions of Guarantee.
Section 445.1674 - Annual Statement and Ledger History of Borrower's Account; Fee Prohibited.
Section 445.1675 - Applicability of Act.
Section 445.1675a - Exemptions; Filing Affidavit; Failure to Meet Qualifications.
Section 445.1676 - Laws to Which Mortgage Loan Subject.
Section 445.1678 - Civil or Criminal Liability.
Section 445.1680 - Effect of Noncompliance on Validity or Enforceability of Mortgage Loan.
Section 445.1681 - Action to Obtain Declaratory Judgment, Injunction, or Actual Damages; Limitation.
Section 445.1682 - Conservatorship.
Section 445.1684 - Claims Filed Against Proof of Financial Responsibility.