LANSING, MI – January 22, 2009 – (RealEstateRama) — A recently signed mortgage reform measure, sponsored by Sen. Randy Richardville, is the senator’s 18th bill to become a public act during the 2007-2008 legislative session.
Richardville said a majority of the laws focus on protection of homeowners and economic development opportunities because that is where Michigan residents and businesses need the most help.
“During my first two years of service as a state senator, I have introduced legislation to help reduce mortgage fraud, encourage business growth, and streamline the size of state government,” said Richardville, R-Monroe. “My main goal has been to protect families and job providers so that they will stay in Michigan. I remain committed to these important issues and will continue working on them in the coming years.”
Senate Bill 356, part of a bicameral, bipartisan legislative package to help prevent mortgage fraud in Michigan, was the most recent Richardville bill signed by the governor. Now Public Act 529 of 2008, the new measure prohibits professionals from coercing or inducing a real estate appraiser into inflating the value of real property used as collateral for a mortgage loan.
“Appraisal coercion is a major problem in the mortgage industry,” Richardville said. “Michigan lenders lose millions each year because of this fraudulent activity, and it can leave homeowners financially and emotionally devastated. This new law will help appraisers provide independent assessments that are fair to both lenders and homeowners.”