Michigan Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Mortgage Lending Practices / Mich. Comp. Laws Ann. §445.1602 | Appraisal & Other Form Copies | Mortgage lender and brokers may charge an application fee uniform as to type of loan. If a lender includes appraisal in its written statement of reasons for rejection or variance or collects an application appraisal fee, then upon the request of a person making a loan application that is denied or the terms of which are varied and not accepted by the applicant, a lender shall provide the person, without additional charge, with a copy of the appraisal made in connection with the loan application. If an application appraisal fee is not collected, the copy may be made usable only for purposes related to this act. Copies of other completed forms, reports, and correspondence, except a credit report or correspondence pertaining to a credit report, used in reaching its decision shall be provided, on request and without charge, to a person making a loan application that is denied or the terms of which are varied and not accepted by the applicant. |
| Consumer Mortgage Protection Act / Mich. Comp. Laws Ann. §445.1635 | Balloon Loans | A mortgage loan with a term of less than 5 years may not have a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance. This restriction does not apply to loans with maturities of less than 1 year, if the purpose of the loan is a “bridge” loan connected with the acquisition or construction of a dwelling intended to become the borrower's principal dwelling. |
| Consumer Mortgage Protection Act / Mich. Comp. Laws Ann. §445.1636 | Borrower Bill of Rights | Must be provided at the time of application by licensees under the Mortgage Brokers, Lenders and Servicers Licensing Act for all mortgage loans. Mortgage Loans - means a loan or home improvement installment contract secured by a first or subordinate mortgage or any other form of lien or a land contract that covers real property located in this state that is used as the borrower’s principal dwelling and is designed for occupancy by 4 or fewer families. Mortgage loan does not include any of the following: (i) A loan transaction in which the proceeds are used to acquire the borrower’s principal dwelling. (ii) A reverse-mortgage transaction. (iii) An open-end credit plan. iv) A loan transaction in which the proceeds are not used primarily for a personal, family, or household purpose. |
| Consumer Mortgage Protection Act / Mich. Comp. Laws Ann. §445.1634 | Credit Insurances | A lender may not finance, as part of the mortgage loan, single premium coverage for any credit life, credit disability, or credit unemployment insurance. |
| Mortgage Brokers, Lenders, and Servicers Licensing Act / Mich. Comp. Laws Ann. §445.1602 | Minimum Loan Amounts | A lender may not impose a minimum mortgage amount greater than $10,000 or minimum loan amount of greater than $1,000 for a home improvement loan. |
| Consumer Mortgage Protection Act / Mich. Comp. Laws Ann. §445.1634 | Mortgage Note - Blank Spaces | A mortgage loan note shall not contain blanks regarding payments, interest rates, maturity date, or amount borrowed to be filled in after the note is signed by the borrower. |
| Mortgage Loan Originator Licensing Act / Mich. Comp. Laws Ann. §493.171 | NMLS Unique Identifier | The NMLS unique identifier of any person originating a residential mortgage loan in Michigan must be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents, as established by rule or order of the Commissioner. The Michigan Office of Financial and Insurance Regulation has interpreted the meaning of “any person” as identified above as referring to an individual person (natural person) and not the employing mortgage broker, mortgage lender or mortgage servicer. See MLOLA Sec 41 Interpretation Letter for additional clarification. |
| Mortgage Brokers, Lenders, and Servicers Licensing Act / Mich. Comp. Laws Ann. §445.1673 | Rate Lock Agreement (if applicable) | First lien only. If a licensee or registrant assesses or accepts a fee to guarantee a specified rate of interest on a mortgage loan, the licensee or registrant must specify the terms and conditions of the guarantee in writing. |
| Insurance Code / Mich. Comp. Laws Ann. §500.1243 | Right to Choose Insurance Provider | If insurance is required as a condition of obtaining a loan, and if the required insurance is available through the lender or an affiliate of the lender, the lender must disclose to the applicant: (1) that the lender will not require the borrower to purchase any policy or contract of insurance through a particular agent, agency, or with a particular insurer; (2) except as otherwise provided by law, that the lender will not require the borrower to purchase any insurance product from the lender or an affiliate as a condition of the loan; and (3) that the purchase of any insurance product from the lender or its affiliated agency is optional and will not in any way affect current or future credit decisions. |