Richardville mortgage loan officer licensing requirements bill signed into law to help protect homeowners and reduce fraud
LANSING, MI – July 29, 2009 – (RealEstateRama) — The governor signed a bipartisan legislative package Tuesday that will strengthen existing requirements for loan officers in Michigan, said Sen. Randy Richardville, the main sponsor of the reform plan.
“Protecting homeowners from the few bad actors who conduct fraudulent mortgage transactions in Michigan has been one of my top priorities as a lawmaker,” said Richardville, R-Monroe. “Through legislation I sponsored last session, Michigan enacted its own mortgage loan officer requirements. These laws will bring us in line with new federal guidelines that strengthen our protective measures by creating a national registration system for loan officers.”
Richardville’s Senate Bill 462, now Public Act 75 of 2009, adds federal requirements to those already established in Michigan law for individuals who offer or negotiate terms for a mortgage loan.
The requirements include pre-licensing education and testing, as well as fingerprinting and background checks under the national Secure and Fair Enforcement Mortgage Licensing Act of 2008. Loan originators will also be required to register through the Nationwide Mortgage Licensing System and Registry.
“The main goal of the federal requirements and licensing system is to ensure accountability and responsibility in the mortgage industry,” said Richardville, chair of the Senate Banking and Financial Institutions Committee. “With the registry in place, homeowners can access a loan officer’s employment history and be assured that their representative is qualified to conduct loan transactions.”
Other bills in the package, now Public Acts 76-78 of 2009, make the same changes to other state laws dealing with mortgage and financial services.
Michigan had to adopt the legislation by July 30, 2009 to comply with federal law. Mortgage loan originators must be licensed under the new system by July 31, 2010.
