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HB 6185

Financial institutions: mortgage brokers and lenders; consolidation of certain licensing statutes related to residential mortgages; make conforming changes in the occupational code. Amends secs. 2501, 2503 & 2603 of 1980 PA 299 (MCL 339.2501 et. seq.). TIE BAR WITH: HB 6177'26

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

Consolidates and harmonizes licensing for residential mortgage activities, real estate brokers/salespersons, and appraisers, aligning definitions, exemptions, and governance.

bill electronically reproduced 07/03/2026
#financialinstitutions:mortgagebrokersandlenders
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Bill Summary · HB 6185

Overview

House Bill 6185 (2025-2026, Michigan) amends the Occupational Code to consolidate and align licensing provisions related to residential mortgages and real estate brokerage. It ties to HB 6177 and would modify definitions, exemptions, and governance related to real estate brokers, salespersons, and the board structure for appraisers. The bill is introduced and referred to the Committee on Finance.

Main purpose and intent

  • Consolidate and harmonize licensing statutes for residential mortgages, real estate brokers/salespersons, and appraisers within the occupational code.
  • Prepare for or support a broader residential mortgage licensing and supervision act by aligning related definitions and exemptions.
  • Create a pathway for conforming changes in related bills (notably HB 6177) to ensure consistent regulation as mortgage licensing frameworks evolve.

Key provisions and changes

  • Definitions (Sec. 2501): The bill updates or clarifies terms used in real estate brokerage, mortgage activity, and related licensing. Examples include definitions for associate broker, business entity, classroom course, clock hour, control person, distance learning, employ/employee, independent contractor relationship, license cycle, three types of contracts and agreements (limited service, property management, sponsor, etc.), and the scope of “negotiate the mortgage of real estate.”
  • Real estate license scope and exemptions (Sec. 2503):
    • Establishes exemptions for:
    • Owners who sell or offer for sale certain new, unoccupied single-family/dwelling units built by the owner while licensed under Article 24.
    • Attorneys-in-fact, trustees, receivers, and certain court-ordered actions, under specified circumstances.
    • Persons regulated under mortgage-related acts (as of 6 months after the effective date of the residential mortgage licensing and supervision act) who do not perform other real estate broker acts.
    • Clarifies that certain mortgage-related activities will be exempt from the real estate licensing article for a transitional period or once the mortgage licensing acts take effect.
  • Board of real estate appraisers (Sec. 2603):
    • Specifies composition: 3 certified general appraisers, 1 certified residential appraiser, and 2 licensed or additional certified residential appraisers.
    • Requires at least one appraiser to be employed by a financial institution or related entity (e.g., state/national banks, savings institutions, credit unions, or Farm Credit System) or by an entity regulated under the mortgage licensing framework (either the current mortgage brokers/lenders/servicers act or the proposed residential mortgage licensing act).
  • Enacting clause and effectiveness:
    • The act’s effectiveness is contingent on enactment of HB 6177 (tied or “tied-bar” in legislative terms), indicating these changes are part of a package meant to work together.

Who is affected

  • Real estate brokers, associate brokers, real estate salespersons, and their employing brokers.
  • Property managers and entities engaging in property management activities.
  • Individuals pursuing or maintaining real estate licenses (through classroom and distance learning, clock hours, etc.).
  • Mortgage brokers, lenders, servicers, and other mortgage-related professionals transitioning under the forthcoming residential mortgage licensing framework.
  • Real estate appraisers and the boards/entities involved in appraisal oversight, especially in relation to employer affiliations with financial institutions.

Procedural and timeline aspects

  • The bill is introduced and referred to the House Committee on Finance.
  • Notable timing: several provisions reference a “residential mortgage licensing and supervision act.” The exemptions and transitional provisions hinge on the effective date of that act, with a 6-month post-effective period noted for certain transitions.
  • Final enactment is contingent upon HB 6177 being enacted into law (tied-bar requirement).

Summary

HB 6185 seeks to consolidate and harmonize licensing regimes for residential mortgage activities and real estate brokerage within Michigan’s Occupational Code, including clarifying definitions, exemptions, and governance for appraisers. It is designed to operate in concert with HB 6177 and the broader residential mortgage licensing framework, facilitating a smoother transition as mortgage licensing statutes take effect and aligning supervisory structures across related professions.

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

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