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HB 6192

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the debt management act. Amends sec. 8a of 1975 PA 148 (MCL 451.418a). TIE BAR WITH: HB 6177'26

2025-2026 Regular Session Introduced by Greg Alexander and 3 co-sponsors

Creates a robust mechanism to prohibit or suspend individuals from financial licenses and related employment when fraud or related misconduct is found or suspected.

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6192

Summary of HB 6192 (2025-2026, Michigan)

Purpose and intent

  • HB 6192 amends the Debt Management Act (public act 148 of 1975) to strengthen how regulators can prohibit or suspend individuals from being licensed, employed by, or affiliated with licensees in financial services when fraud or related misconduct is found.
  • The bill ties its effective date to House Bill 6177, meaning it will take effect only if HB 6177 becomes law.

Key provisions and changes

  • New enforcement authority: The director of the applicable financial licensing or licensing-related agencies may issue a written notice of intention to prohibit an individual from:
    • Being licensed under the Debt Management Act or any other financial licensing acts, or
    • Being employed by, acting as an agent for, or being a control person of a licensee.
  • Hearing process:
    • The notice must state facts supporting the prohibition and set a hearing within 60 days.
    • If the individual does not appear, they are deemed to have consented to the order.
    • A finding after a hearing can result in a suspension or prohibition order.
  • Effective and continuing nature of orders:
    • Orders become effective upon service and remain in effect until stayed, modified, terminated, or set aside.
    • After 5 years from an order, the individual can apply to terminate the order.
  • Immediate suspension in cases of imminent threat:
    • If there is an imminent risk of financial loss to customers, the director may issue an immediate suspension, which remains in effect during review unless stayed by a court.
    • A hearing for suspension review must occur within 5 to 20 days after notice, unless otherwise agreed.
  • Connections to fraud convictions:
    • If an individual is convicted of a felony involving fraud, dishonesty, or breach of trust, the director may suspend or prohibit licensing or employment and can terminate the order after 5 years.
  • Notifications and procedural requirements:
    • The director must mail copies of notices or orders to employers or principals of the affected individuals.
    • The director must issue a decision with findings within 30 days after a matter is submitted, and serve all parties with the decision and order.
    • Judicial review is available for most orders (except consent orders) under applicable administrative procedures.
    • Proceedings for judicial review do not automatically stay the director’s order unless the court orders so.
  • Penalties:
    • Violating a final order under this section is a misdemeanor, punishable by up to 1 year in jail, a fine up to $5,000, or both.
  • Definitions:
    • “Financial licensing act” includes several acts such as the Consumer Financial Services Act and related licensing statutes.
    • “Fraud” encompasses various forms of fraud, including actual, constructive, criminal, and fraud in execution or inducement.

Affected parties and entities

  • Individuals who work in or with residential mortgage licensing, debt management, and related financial licensing sectors.
  • Licensees, employers, and agents associated with financial licensees.
  • The director and relevant state agencies administering financial licensing acts (including those related to mortgage origination and supervision, once the tied act (HB 6177) takes effect).

Procedural and timeline aspects

  • Consent and hearing timelines:
    • Hearing on prohibition within 60 days of notice; failure to appear equates to consent.
    • Suspension actions for imminent threats require a hearing within 5 to 20 days after notice.
  • Duration and termination:
    • Orders remain in effect until modified, terminated, or set aside.
    • A 5-year window exists after an order, allowing termination requests by the subject.
  • Judicial review:
    • Generally available for orders (except consent orders) under state administrative procedures law.
  • Enforcement:
    • The director may pursue enforcement through the Ingham County circuit court if needed.
  • Effective date:
    • The act’s provisions depend on the enactment of HB 6177; thus, the bill’s substantive changes are contingent on that companion bill becoming law.

Overall impact

  • Strengthens regulatory oversight by creating a robust mechanism to prohibit or suspend individuals from financial licenses and related employment when fraud or related misconduct is present or suspected.
  • Introduces explicit timelines, notification obligations, and expedited processes for imminent-threat suspensions to protect consumers.
  • Increases penalties for violations of final orders, potentially enhancing deterrence against fraudulent activity in financial services.

Compiled from official sources — confirm details with the bill’s official record.

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